ISIS violence sets back decade of Middle East trade growth


The escalating violence in Iraq and Syria is disrupting trade routes all across the Middle East, and reversing the region's past decade of growth. Supplies have either been either interrupted, or have needed to be re-routed, increasing costs in any scenario.

Economic difficulties are also hitting Turkey, as the country is Iraq's second biggest export market after Germany, with $12B of sales last year.

“There is no problem with our trade with Kurdistan but to get our trucks down to the rest of Iraqi territory will be very difficult,” says Serif Egeli, a Turkish businessman. “As long as there is no government in Baghdad, it is very difficult to go on with projects and if there are no projects, you can’t sell much more than textiles and food.”

ETFs: TUR, EIS, ISRA, UAE, QAT, EGPT, GULF, MES

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Comments (2)
  • Betalyst
    , contributor
    Comments (666) | Send Message
     
    You've got to be kidding right? This post sucks... how does ISIS impact in other sub-regions impact the UAE and Qatar?

     

    I can understand the threat to countries that have an active ISIS movement, but the Gulf is far from ISIS engagement or movement.
    3 Jul 2014, 09:28 AM Reply Like
  • Nader Habibi
    , contributor
    Comments (2) | Send Message
     
    Direct impact on GCC countries such as UAE and Kuwait is minimal but they have trade relations with Jordan, Lebanon, Iraq and Turkey. Lack of safety for ground transportation has had an adverse impact on these trades. Kurdish region of Iraq for example has strong trade links with UAE.
    ANother link factor is the burden of war refugees from these countries in other Middle East regions. Arab refugees in Turkey are visible in many urban areas of that country.
    8 Jul 2014, 01:48 AM Reply Like
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