Lloyd’s of London has postponed a decision on where it will create a Middle East presence following concerns about the economic climate.

The world’s leading specialist insurance market announced last year that managers would choose a location – one of the principal financial hubs of the Arabian Gulf – by the end of 2008.

However, a Lloyd’s spokesman has confirmed that no decision has been made and that the process has been postponed.

“As for the Middle East, we have not chosen a base of operations as yet as we are holding back, on consultation with the market due to the current global economic climate,” a spokesman said.