Q&A-Exclusive Analysis on Middle East risk

Middle East analysts from London-based risk consultancy Exclusive Analysis answer emailed questions about Iran, Saudi Arabia and UAE.

Iran

What impact will recent unrest in Iran have on the business environment, particularly for foreign investors?

The UK and France have borne the brunt of the government accusations of Western involvement in the post-electoral unrest and have both had Tehran embassy staff subject to arrest and intimidation by the Iranian authorities. The key foreign trade partners of Iran, Italy and Germany, have had less trouble and were subject to lax verbal attacks by the administration. These developments are unlikely to leave a long-term impact on trade ties between Iran and Europe; Iran is able to effectively divorce its economic ambitions, particularly in the energy sector, from its political considerations. However, as European companies, under pressure from the US, delay starting projects in Iran's energy sector, Iran is likely to favour Chinese and domestic companies for oil-sector development.