Geopolitical Risks in the Middle East


Although these risks have been present in the market for a long time now and most investors are aware of this; things are looking serious since the rise of so called Arab spring in early 2011. There are three key themes that would add a lot of tensions in 2013 – 1) Iran – Israel conflict, 2) Protests in Egypt, and 3) Civil war in Syria. All these risks have potential to negatively impact investors’ sentiments and could result in weak growth, and widening external/fiscal imbalances.

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