Saudi billionaire Prince Al Waleed is the emerging world’s Warren Buffet. He’s as comfortable investing in the United Bank of Africa as he is investing in Citibank. So, it was worth taking notice when the Turkish daily, Sabah, reported last week that Al Waleed intends to invest up to $5 billion in Turkey.
He isn’t the first. Arab investors have poured over $6 billion into Turkey during the past five years. Only European investors have outspent them dollar for dollar.
I can see the attraction. Turkey has a similar sized population to Egypt, the region’s other giant. But it’s twice as wealthy. The country’s annual output is worth $13,000 per person. In Egypt, it’s a far lower $6,000. Turkey also has road, rail, and air links to Europe. All of this makes for a compelling sales pitch.
I see four major changes as a result as a result of this type of intra-East investment.
