Profits in the Middle East

Robert Hsu, July 03, 2008

Wow, what a month! June was a rough one for investors to get through, with volatility plaguing almost every one of the world's major markets. Contributing to this volatility are huge economic problems, like record food prices, further credit market deterioration, and stagnating global economic growth. It seems like there are more doom-and-gloom forecasts floating around now than at any other time that I remember, including the bear market lows in October of 2002.

While it tempting for investors to just take what money they have and run for the hills, I think that it is important to know that such high levels of gloom and doom usually appear near market bottoms. Until that happens, though, we should still find opportunities to profit from this rough market environment. And I think I have found a great way to do this –- by investing in the Middle East.

Even as record oil prices damage economic growth in much of the world, the Middle East is enjoying its greatest economic boom since the 1970's. And it's probably no surprise to you that this boom is a result of the current energy bull market. It is estimated that around half of the world's known easy access oil reserves are buried under the Middle East. So countries all over the world are turning to the Middle East for oil supplies and paying for it at nosebleed levels, while the Persian Gulf states rake in the profits.

This trend has helped propel these states' economies forward. Investors are throwing billions of their dollars made by supporting the Middle Eastern oil business into developing this region, and it is paying off. Now, there are many prosperous cities being built there, and it is becoming a very wealthy region.

Although the Persian Gulf states have enjoyed immense profits from oil, it is interesting to know that exports out of this region have not been able to keep up with the world's increasing demand. That's because oil use is increasing rapidly in the Middle East -- they are now using much of the oil that they used to export to support their own booming economies.

Now, the Persian Gulf states are building huge structures -- which is contributing to the increasing energy demand. And more people there are using oil-guzzling SUVs. You may think that buying the oil for these developments is expensive, but it's not. Many of the Gulf States subsidize gasoline and make it free to citizens. Looking at these developments, you can see how higher oil demand in the Middle East has pinched oil supplies.

While increased energy usage in the Arab states has tightened exports and helped push up the cost of crude oil, it is creating a very investable -- and profitable -- trend. And here at Asia Edge, we look for the most profitable opportunities right now. Today, there is money to be made in Persian Gulf, and I have a recommendation on how to cash in.

Do you want to know what company is profiting from the increased energy demand in the Persian Gulf states? Become a member of Asia Edge today to find out!