On “Liberation Day”, the Gulf States were relatively spared by the threat of trade tariffs. However, there are other channels through which “Trump risk” can be transmitted.

The Egyptian economy, though weakened, is recovering from a two-year external liquidity crisis. The crisis is a reminder of the extent to which countries with debt and dependent on external financing are vulnerable to investor confidence. Thanks to substantial funding from the United Arab Emirates and the IMF, the country's external liquidity risk has dipped sharply. But this is not a long-term blank...