The disruption and anti-government protests seen in the MENA region stems from the US Federal Reserve printing money, said Aberdeen's head of global equities, who has moved defensive to protect portfolios from further unrest.
Markets and the single currency reacted strongly yesterday after the European Central Bank hinted at raising interest rates as early as April.
Billionaire investor George Soros has urged Western nations to support revolutions in the Middle East to gain allegiance with new-found democracies.
The price of gold has hit a record high on concerns about unrest in the Middle East and contagion risk from Libya, while oil has topped the $116 a barrel mark.
Emerging markets firm Charlemagne Capital has launched the Magna MENA fund, which will invest up to 90% in Gulf Co-operation Council regions to play higher oil prices.
Brent crude oil has soared to $104 dollars a barrel amid fresh concerns over the Suez Canal in the Middle East.
Developing nations are seeing money market rates soar at the fastest pace since 2008, as central banks in EMs boost borrowing costs in reaction to concerns over political unrest in Egypt.
In line with the global equities markets, 2010 was very forgiving for the Middle East and North Africa (MENA) region, with most managers believing the worst is over and now is the time to invest in the region.