September - Focus on the Middle East

Fears of a low turnout as a result of the continuing conflict in Iraq were quelled when more than 600 delegates gathered for one of the most memorable congresses in recent history.

Aside from the feasting, entertainment and trips to numerous ancient ruins, visitors were also rewarded with an insight into one of the world’s fastest-growing emerging markets.

Opportunities for first-movers in the region stem from the growing sophistication of clients and from developments such as Islamic banking, which is growing fast in the Middle East. Previously concerned chiefly with developing sharia- (Islamic law) compliant solutions in the money markets industry, Islamic banking is now being applied to currency hedging.

Although currently largely limited to "theoretical discussion" rather than actual implementation, banks will have to come up with solutions to provide currency forwards and options in order to develop Islamic banking as a viable business, said Dr Shujaat Nadeem, Bahrain-based regional director of sales and trading for Citigroup in the Middle East, the Levant, Pakistan and Egypt.

Also, the repatriation of Islamic funds to the region, due to the economic environment in the US, and as a result of the US Patriot Act, has brought unexpected liquidity to local markets.

"The whole region is growing in importance," said Daniel Hanna, Standard Chartered’s international economist for the Middle East, who recently transferred from London to Dubai to cater for the bank’s growing dealing floor there. "Capital markets and currency markets are becoming much more sophisticated."