Gulf's billions insulate economies, markets from Iraq turmoil | Reuters:
"For years, the rich oil states of the Gulf have struggled to insulate themselves from political turbulence in the rest of their volatile region. Markets' reaction to the insurgency in Iraq suggest they may finally have succeeded.
Saudi Arabia and Kuwait face the potential disintegration of a country on their borders. At the very least, the turmoil in Iraq looks set to widen the Sunni-Shi'ite divide which has poisoned politics across the region.
But in contrast to past episodes of instability in the Middle East, the Gulf's financial markets are mostly reacting calmly. Foreign investors have continued to plough hundreds of millions of dollars into Gulf bonds. There have been no signs of pressure on Gulf currencies' pegs to the U.S. dollar."
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