Amwal AlKhaleej: What Upheaval in the Middle East Means for Business

The events in the Middle East and North Africa (MENA) are bringing historical political and social changes. But what do they mean for business? To gain some perspective, Knowledge@Wharton spoke with Wharton finance professor Bulent Gultekin and Fadi Arbid, CEO of Amwal AlKhaleej, a leading private equity firm in the region. In the podcast below, Gultekin says expects short-term “volatility and uncertainty, but in the long run I think things will settle down and probably there will be economic reforms … provided that political reforms go smoothly….” Arbid suggests that the current upheavals will speed up economic reforms already underway. One concrete change: Dubai is likely to gain as a center for banking and expatriots at the expense of Bahrain.

 

Deloitte LLP: Commercial Real Estate Faces Huge Challenges, while Some Positive Signs Emerge

The commercial real estate industry has come under severe pressure following the financial crisis, with Moody’s commercial real estate index down more than 40% since October 2007, for example. Falling values and rents, and rising vacancy rates are part of the reason some observers have forecast that up to $200 billion in losses could result from this bear market. To get some perspective on where markets stand today, Knowledge@Wharton spoke with Guy Langford, head of the national real estate sector, merger and acquisition services at Deloitte & Touche LLP. Langford discusses the current distressed state of the commercial real estate market, including hotels and retail. He also considers when markets might bottom out and the effect of large pools of funds from potential investors who are beginning to dip their toe into the market.