Middle East Progress? 5 Ways to Invest

After decades of strife, struggle and instability, could the Middle East be the next high-risk/high-reward arena for global investors? Consider President Obama's historic speech in Cairo in early June calling for a “new beginning between the United States and Muslims”; or the ongoing drama in Iran, where massive voter turnout just might succeed in bringing a reform candidate to power.

The times, are they a-changin'?

True, very much remains to be seen and done, but with new mutual funds and exchange-traded funds launching in just the last couple years, there are more opportunities than ever for investors interested in the geopolitically challenging but potentially highly lucrative region. Indeed, a mini bull market may already be forming. After plunging more than 50% in 2008, the Bloomberg Africa/Middle East index is up 15% in 2009.

Of course, plenty of caveats remain, says Joe Clark, managing partner of Financial Enhancement Group of Anderson, Ind., which has no position in that part of the globe. "One of the challenges is that when you look at the entire Middle East you are still only talking about a small percentage [about 5%] of world population," Clark says. "And the biggest investing theme is oil. There are far safer ways to play oil than going into the Middle East."

Still, the higher the risk, the higher the potential reward -- if you're aggressive enough and can wait long enough, says Mark Ragusa, president and chief investment manager of Money Map Advisors in Houston. "Investing in the Middle East now is like investing in the United States in the 1900s," Ragusa says. "It's just a long-term growth play."

SmartMoney spoke with market professionals to take the lay of the Middle East landscape. From mutual funds to ETFs to individual stocks, here's a look at five ways to get a piece of the Middle East.