Columbia International Affairs Online: Policy Briefs

CIAO DATE: 05/2012

The Arab Spring: How soon will foreign investors return?

Paul Antony Barbour, Persephone Economou, Nathan M. Jensen, Daniel Villar

May 2012

Columbia Center on Sustainable Investment

Abstract

The Arab Spring dramatically increased investors’ perceptions of political risk in MENA. An examination of these perceptions indicates long-run optimism that political transitions in the region -- if democratic and coupled with political stability -- could increase FDI and contribute to MENA’s economic development.