Wednesday 21 March 2012

Will Another Arab Spring Doom Middle East ETFs? (EIS, EGPT, GULF) - MarketWatch

Last year, it was Egypt, Libya and Tunisia. This year it could easily be Syria, Qatar and other Middle East countries that bring about a sequel to 2011's Arab Spring. In Syria, President Bashar al-Assad has been fighting a seemingly uphill battle to keep his oppressive regime in charge. This week, the Assad administration blamed Qatar and Saudi Arabia for a car bombing in Aleppo, according to the Telegraph.

Qatar, which has a good relationship with the U.S., is playing the role of power broker to the region, but it's speculated the country is a stronghold of the Muslim Brotherhood. Qatar enjoys excellent relations with the United States, which has no less than three military bases on its soil – but keeps in touch with al-Qaida through Al Jazeera, which is run by Qatar's ruler, according to the Jerusalem Post.

To top it all off, Algeria is slated to hold elections next month and Libyans head to the polls in June. As the world knows, this is a volatile region and any uptick in said volatility could mean profits and peril for select ETFs

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