No Mr. Hariri, Lebanon Cannot Become a Regional Financial Center

I applaud Mr. Hariri’s optimism and ambition, but high liquidity and a good banking sector are not enough for a “Regional Financial Center”.

Why? Here are the reasons that immediately came to my mind:

- A terrible, terrible communications infrastructure.

- No long-term political stability

- No Transparency, no proper rule of law.

- A conservative banking tradition. Good for weathering speculation crises (like the latest international financial crises), but too timid for the kind of transactions a Financial Center requires.

- Competitors with very deep pockets who are also planning “Regional Financial Centers” (Dubai and Doha)

What’s so special about “Regional financial centers” and why every Arab capital has to have one is beyond me..

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