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Historic political shake-up of region encouraging financiers

Ceasefire expected to take pressure off Israel's financial resources

Major funds increasing positions in Egypt

Expects resolution of Lebanon's crisis driving up its bonds

(Recasts heading, includes emergency Arab summit in paragraph 8)

By Marc Jones and Steven Scheer

LONDON/JERUSALEM, Feb 9 (Reuters) - A historic shake-up of the Middle East is starting to draw global financiers, warming to the potential customers of relative peace and economic healing after so much turmoil.

President Donald Trump's proposition that the U.S. take over Gaza might have thrown a curveball into the mix, but the fragile ceasefire in the Israel-Hamas war, Bashar al-Assad's ouster from Syria, disgaeawiki.info a weakened Iran and a new government in Lebanon have actually fed hopes of a reset.

Egypt, the area's most populous country and a key mediator in the recent peace talks, has actually just handled its very first dollar debt sale in four years. Not too long ago it was dealing with financial crisis.

Investors have started purchasing up Israel's bonds again, and those of Lebanon, wagering that Beirut can finally start repairing its linked political, economic and monetary crises.

"The last couple of months have really much reshaped the region and set in play a really various dynamic in a best-case scenario," Charlie Robertson, users.atw.hu a veteran emerging market expert at FIM Partners, said.

The question is whether Trump's prepare for Gaza inflames stress again, he added.

Trump's call to "clear out" Gaza and produce a "Riviera of the Middle East" in the enclave was met international 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 ranking firm S&P Global has indicated it will eliminate Israel's downgrade warning if the ceasefire lasts. It acknowledges the intricacies, but it is a welcome possibility as Israel readies its first major debt sale considering that the truce was signed.

(UN)PREDICTABILITY

Michael Fertik, a U.S. investor and CEO of expert system firm Modelcode.ai, said the easing of stress had contributed to his choice to open an .

He is eager to employ experienced regional software application developers, but geopolitics have actually been an element too.

"With Trump in the White House, nobody questions 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 increase 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 spending package concentrating on "vibrant financial development."

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

"During 2024, I think we learned that the marketplace is not actually afraid of the war however rather the internal political conflict and stress," said Sabina Levy, head of research study at Leader Capital Markets in Tel Aviv.

And if the ceasefire buckles? "It is reasonable to assume an unfavorable response."

Some investors have actually already responded severely to Trump's surprise Gaza relocation.

Yerlan Syzdykov, head of emerging markets at Europe's most significant asset supervisor Amundi, said his firm had bought up Egypt's bonds after the ceasefire deal, but Trump's plan - which foresees Cairo and Jordan accepting 2 million Palestinian refugees - has actually altered that.

Both nations have actually baulked at Trump's concept but the risk is, Syzdykov explained, that the U.S. president uses Egypt's reliance on bilateral and IMF support to try to strong arm the country offered its recent brush with a full-blown economic crisis.

Reducing the attacks by Yemen's Houthi fighters on ships in the Red Sea also remains important. The nation lost $7 billion - more than 60% - of its Suez Canal revenues in 2015 as carriers diverted around Africa rather than risk ambush.

"Markets are not likely to like the concept of Egypt losing such (bilateral and multilateral) support, and we are taking a more mindful position to see how these negotiations will unfold," Syzdykov said.

REBUILD AND forum.altaycoins.com RESTRUCTURE

Others expect the rebuilding of bombed homes and facilities in Syria and akropolistravel.com somewhere else to be a chance for Turkey's heavyweight construction firms.

Trump's Middle East envoy, Steve Witkoff, has said it could take 10 to 15 years to rebuild Gaza. The World Bank, meanwhile, puts Lebanon's damage at $8.5 billion, approximately 35% of its GDP.

Beirut's default-stricken bonds more than doubled in cost when it became clear in September that Hezbollah's grip in Lebanon was being damaged and have actually continued to increase on hopes the nation's crisis is resolved.

Lebanon's new President Michel Aoun's first state see will be to Saudi Arabia, a country seen as a prospective crucial fan, and bbarlock.com one that likely sees this as an opportunity to further eliminate Lebanon from Iran's sphere of impact.

Bondholders say there have actually been initial contacts with the brand-new authorities too.

"Lebanon might be a huge story in 2025 if we make progress towards a financial obligation restructuring," Magda Branet, head of emerging markets repaired income at AXA Investment Managers, said.

"It is not going to be simple" though she added, provided the country's track record, the $45 billion of debt that requires reworking which Lebanese savers could see a few of their money seized by the federal government as part of the strategy.

(Reporting by Marc Jones and Steve Scheer; Editing by Sharon Singleton and William Mallard)