Cheer up – the Arabian real economy steams ahead

by Imad Ghandour February 3, 2008

written by Imad Ghandour February 3, 2008

As I am writing these words, stock markets around the world are witnessing one of the most dramatic free falls in their history. The subprime problem is now snowballing to become a global recession. Banks are hesitant to even lend to each other. Central bankers are panicking. The Federal Reserve dropped its benchmark discount rate by 0.75% — the largest single drop in seven years. Despite the talk of gloom and doom, I am cheerful. The markets back in 2000 were hit by the burst of the technology bubble, and then in 2001, they were slammed again by the 9/11 attacks. Thereafter, economic growth slowed considerably. But for private equity, investments made after 2001 yielded excellent returns. As valuations plummeted from their 2000 highs, private equity players in US and Europe were able to close deals post-2001 at bargain prices. The graph below shows CalPers (the largest investor in private

Imad Ghandour

Imad is the Co-founder and Managing Director of CedarBridge, an investment company focusing on high-growth opportunities in education, healthcare, wellness & beauty, and retail in Europe and MENA. With over 15 years of experience in private equity across MENA, the UK, and China, he serves on several boards, including SAE Arabia and The Grooming Company. He has also served as a director for major organizations like CIRA, Maarif Education, and Metito. Imad co-founded the MENA Private Equity Association, is a member of the British Venture Capital Association, and holds an Engineering degree from the American University of Beirut and an MBA from the University of Wisconsin – Madison.

Cheer up – the Arabian real economy steams ahead

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