North Africa now under close scrutiny from investors - The National

Investors from the Gulf and elsewhere are re-examining their strategies as they gauge the economic consequences of the political change sweeping the area.

North Africa's populous countries in recent years positioned themselves as receptive to foreign investment and tourism, even as their political systems stagnated. Outside investors, in turn, put billions of dollars into Egypt, Tunisia, Algeria, Morocco and other parts of a region that has experienced robust economic growth for years. Tourists, too, came by the millions.

But with the ousting of Tunisia's government, along with violent clashes in Egypt, Algeria, Yemen and Lebanon, new questions are being asked about the demographics and economic growth that made those countries ripe for investment. Analysts now say foreign investors are taking a stance more cautious than ever before over the region, which has suffered a sudden flight of capital in bond, equity and currency markets.