Middle East Economic Survey


No 12



Bahrain Chaos Raises Specter Of Capital Flight

Chaos in Bahrain has triggered an outflow of short term funds, and raised concerns that capital flight could escalate. As a result, fears are growing that the Gulf islands status as a regional financial hub could be tarnished if the political problems are not resolved soon.

The Bahraini government appealed to its GCC neighbors to help quell the popular uprising, resulting in the...