Middle East War Favorable to Turkey

PanARMENIAN.Net
08.08.2006 18:53 GMT+04:00

/PanARMENIAN.Net/ Turkish economic empire center of Istanbul will
only gain from Beirut stopping its existence as a financial center,
writes the Frankfurter Rundschau German newspaper. In the opinion
of the author of Oil dollars seek asylum in Bosporus article of Herd
Haler, though Lebanon has become a favorite place for Arab investors,
they now prefer investing capitals in markets, which are more stable.

These include first of all Turkey. "It is still hard to assess the
volume of those transfers. A proof of inflow of that capital into
Turkish economy can be the Turkish lira rate increasing 6% since
mid-July.

Meanwhile, secrecy atmosphere is sustained not to form an impression
that Arab investors leave Lebanon to the mercy of fate. Turkey
will only profit from the Middle East crisis. In 2005 Turk Telekom
bought 55% of Oger Saudi Arabian company at $6.6 billion. The firm
is controlled by the family of Lebanese PM Rafik al-Hariri, killed
in 2005," the article says.

Heler underscored that Turkey attracts investors by growth rate of its
economy, developed financial markets and relative stability. "Arab
investors feel comfortable in Turkey, as the state is headed by
pro-Islamic government. Since the beginning of its tenure in 2002
economic exchange between Turkey and Arab countries increased from 7$
to $17 billion.

Turkish PM Erdogan, an Islamic fundamentalist, stands up for
investments in his country. Observers assess his expressed anti-Israeli
posture and critical rhetoric regarding the US during the latest
Middle East conflict as part of the common strategy. Erdogan will
try to make use of the visit of Saudi King to Turkey to demonstrate
solidarity with the Arab world.

King Abdullah lately pledged assistance of $1.5 billion to Lebanon. A
third part of those means should be spent to restore the country. Part
of those means can flow into the Turkish economy: Turkish construction
companies, who have already concluded building contracts in the Middle
East for $30 billion, hope to take part in rehabilitation of Lebanon,"
Frankfurter Rundschau considers.