11 Jan, 2016
Dubai: The Saudi-Iranian tensions could impact not just the economy of Iran, but also that of the wider Middle East and Africa (MEA) region, analysts have said. It could also affect investors’ appetite for risk, “spell increased volatility” in the financial markets and create pressure on oil prices. “[The] impact of the conflict on key sectors such as oil, tourism and trade but also on the overall economy could be felt not only by Iran but also by the already fragile MEA region,” said Kinda Chebib, senior research analyst at Euromonitor International, in her analysis sent to Gulf News. Chebib noted that the two countries have import-export ties, with the trade exchange between them exceeding $266 million (Dh977 million) in 2014. By the end of 2014, the volume of Saudi exports to Iran reached about $102 million, while Saudi imports from Iran hit $181 million.