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Thursday, 15 June 2017

Qatar Crisis Challenges Gulf Assets as Middle East's Safe Haven - Bloomberg

Qatar Crisis Challenges Gulf Assets as Middle East's Safe Haven - Bloomberg:

"Gulf countries and their assets for years have been seen as a safe bet for investors in Middle Eastern emerging markets. Not anymore. Their reputation as rich, commodity-oriented economies that could maintain high credit ratings has eroded as tension escalated in the region last week after Saudi Arabia and allies severed diplomatic and transport links with Qatar. The move to punish Qatar for its ties to Iran and extremist groups in the region surprised investors. The average spread paid by governments in the Middle East to borrow in bond markets has since risen seven basis points, compared with a three basis point decline for emerging-market debt, according to JPMorgan Chase & Co. indexes."



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