Five years after the United Arab Emirates began its steepest economic slump in two decades, a rebound has left policy makers pondering ways to avert a recurrence of the overheating that turned boom into bust.
Egypt’s default risk soared to a record after a speech by President Mohamed Mursi failed to alleviate investor concerns ahead of planned nationwide rallies this weekend. Domestic debt yields climbed to a nine-month high.
Political turmoil that started in Tunisia in 2011 and swept across the Arab world will cost the seven most-affected countries about $800 billion by the end of next year, according to HSBC Holdings Plc.
Oil-rich Gulf Arab countries, led by Qatar and Saudi Arabia, are widening the wealth gap with the region’s energy importers as political turmoil from Egypt to Lebanon stifles economic growth, HSBC Holdings Plc said.