Tensions over Iran, unrest in Syria and concern about refinancing of upcoming Dubai debt are making international investors wary of Gulf and other Middle Eastern markets this year, just as developed markets enjoy fresh gains.
Storming oil prices and healthy balance sheets among energy-producing Gulf economies kept these markets on a relatively even keel last year, as international investors saw the region as an alternative to the debt-laden euro zone and United States.
But liquidity injections by the European Central Bank in the form of its long-term refinancing operation and quantitative easing by the U.S. Federal Reserve have boosted developed markets, partly draining the Gulf of its "alternative" appeal.
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