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First thoughts on the Israel-UAE peace deal

The normalising of relations between Israel and the UAE may pave the way for similar agreements with the other Gulf countries, notably Saudi Arabia. The move might help to foster economic relations between the two countries, although the experience from other parts of the region would suggest that might be optimistic. Perhaps the biggest implication is that it further increases the risk of conflict with Iran.
Jason Tuvey Senior Emerging Markets Economist
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More from Jason Tuvey

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Turkey’s central bank took steps this week to tackle deposit dollarisation in the banking sector, although these efforts will fail to make headway in the absence of a stronger commitment to rein in high inflation. Meanwhile, Ukraine’s government still has work to do to secure the next tranche of its IMF loan, but the economy can muddle through without help from the Fund for some time. Finally, other developments this week suggest that Poland’s central bank may stick to its recent dovish rhetoric while Russia looks like it could accelerate the pace of monetary tightening.

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