Monday, February 21, 2011

Turmoil in the Middle East: Will Saudi Arabia be Next?

With the recent turmoil across North Africa and the Gulf, investors are now becoming increasingly concerned that the ‘political contagion,’ as the wave of upheaval has come to be known, may flow over into Saudi Arabia as well. The worry is that the protests in various parts of the Arab World will embolden Saudi youths, or the minority Shiites in the east, to revolt in a similar fashion.

The country supplies about 12% of global oil production and sits on at least a fifth of the world’s oil reserves.

By being on the eastern border of the Kingdom, Bahrain is near key parts of the country’s crude reserves. Although doubtful that Saudi Arabia would be drawn into the contagion, “the fear factor could potentially force oil prices higher and leave the equity markets lower”, Gary Dugan, CIO at Emirates NBD, told CNBC.

Other Sources:

Kilduff: When It Comes to the Middle East - Saudi Arabia Is Key

Middle East Turmoil: Is Saudi Arabia Next?

Middle East Turmoil: Saudi Arabia Apart From The Rest?


Turmoil in the Middle East: Bahrain's Revolution

Protests Weigh on Gulf Arab Stocks

Saudi Stocks Drop for a Fifth Day on Growing Unrest

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