Tunisia

January 2007 | Risk Summary

Reports of clashes between Tunisian security forces and Islamist militants in late December and early January south of the capital Tunis is worrying. Indeed, given the importance of political stability where tourism contributes significantly to the economy and the government is keen to attract higher FDI, anything that disturbs this image is bad news. It is not surprising therefore that the government has played down these clashes in an effort to ease such worries. While further attacks in the future are highly likely, particularly given the increasing interest shown by al-Qaeda in North Africa, we believe that there is no

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