Taiwan's Financial Sector Exposure to Middle East Reaches NT$2.35 Trillion, Up 3.07%

Escalating geopolitical tensions and conflict in the Middle East could affect sovereign bond prices, exchange rates and capital flows. Taiwan's Financial Supervisory Commission tracks local banks', insurers' and securities and futures firms' investments in the region to assess their potential market and credit risks.

At the end of December 2025, the three financial industries' total exposure to the Middle East stood at NT$2.350934 trillion, up 3.07% from the end of 2024. The exposure was concentrated mainly in Saudi Arabia, the United Arab Emirates and Qatar, with fixed-income bonds accounting for the largest share across all three industries. The FSC said it would continue urging financial institutions to manage their risks.