Historic political shake-up of region motivating financiers

Ceasefire anticipated to take pressure off Israel’s financial resources

Major funds increasing positions in Egypt

Expects resolution of Lebanon’s crisis increasing its bonds

(Recasts heading, adds emergency Arab top in paragraph 8)

By Marc Jones and Steven Scheer

LONDON/JERUSALEM, Feb 9 (Reuters) - A historic shake-up of the Middle East is beginning to draw global financiers, warming to the prospects of relative peace and financial recovery after so much chaos.

President Donald Trump’s proposal that the U.S. take control of Gaza might have thrown a curveball into the mix, however the fragile ceasefire in the Israel-Hamas war, Bashar al-Assad’s ouster from Syria, a weakened Iran and a brand-new federal government in Lebanon have fed hopes of a reset.

Egypt, the region’s most populated country and an essential negotiator in the recent peace talks, has just handled its first dollar debt sale in four years. Not too long ago it was dealing with economic disaster.

Investors have started purchasing up Israel’s bonds again, and those of Lebanon, betting that Beirut can finally begin repairing its linked political, financial and financial crises.

“The last few months have extremely much reshaped the region and set in play a very various dynamic in a best-case scenario,” Charlie Robertson, a veteran emerging market analyst at FIM Partners, allmy.bio said.

The concern is whether Trump’s prepare for Gaza irritates tensions again, he included.

Trump’s call to “clear out” Gaza and develop a “Riviera of the Middle East” in the enclave was consulted with worldwide condemnation.

Reacting to the outcry, Egypt said on Sunday it would host an emergency situation Arab summit on February 27 to discuss what it explained as “severe” advancements for Palestinians.

Credit rating company S&P Global has actually signalled it will remove Israel’s downgrade caution if the ceasefire lasts. It acknowledges the intricacies, townshipmarket.co.za but it is a welcome possibility as Israel readies its first significant financial obligation sale since the truce was signed.

(UN)PREDICTABILITY

Michael Fertik, a U.S. investor and CEO of synthetic intelligence firm Modelcode.ai, said the easing of stress had added to his decision to open an Israeli subsidiary.

He is eager to work with experienced local software application developers, however geopolitics have been an aspect too.

“With Trump in the White House, no one doubts the United States has Israel ´ s back in a fight,” he said, explaining how it supplied predictability even if the war re-ignites.

Having mainly remained away when Israel ramped up spending on the war, bond investors are likewise beginning to come back, main bank data shows.

Economy Minister Nir Barkat informed Reuters in an interview last month that he will be looking for a more generous costs package focusing on “vibrant financial development.”

The snag for stock financiers though, is that Israel was one of the very best carrying out markets in the world in the 18 months after the October 7, 2023 attacks. Since the ceasefire - which has actually accompanied a sizable U.S. tech selloff - it has remained in retreat.

“During 2024, I believe we learned that the marketplace is not really afraid of the war however rather the internal political dispute and stress,” said Sabina Levy, head of research at Leader Capital Markets in Tel Aviv.

And [rocksoff.org](https://rocksoff.org/foroes/index.php?action=profile