The deteriorating political situation in Bahrain may have very serious economic consequences for the Middle East and North Africa (MENA) region. Admittedly, the country’s economy is minor and it produces no more than 40,000 barrels of crude oil a day. However, the religious nature of the civil unrest in Bahrain and its geopolitical implications are major concerns. We therefore fear that the simmering Arab-Iranian tensions may soon overshadow the wave of democratic transformation elsewhere in the region.
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