Emerging markets debt has been resilient amid Middle East–driven volatility.
Some countries (such as Oman) have shown improving credit profiles, while others (including Saudi Arabia and the United Arab Emirates) face episodic risk premia tied to regional tensions.
Improved valuations following recent spread widening are creating selective opportunities, even as energy price dynamics and Gulf-linked risks differentiate outcomes across countries.
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Despite elevated volatility tied to the Middle East conflict, EM debt held up well in the first quarter, with performance supported by steady growth, stable fiscal dynamics, and strong commodity prices.
