now sits alongside geopolitics in matters of war, peace, and prosperity."
"Whether staring over the fiscal cliff, battling the eurozone crisis, trying to profit from a rising China, or taking cover from the Middle East; around the world, politics has come to dominate market outcomes," it added.
About the top-ranked risk, Eurasia said that emerging market growth in past few years has kept the trade moving, commodities prices afloat, and offered attractive investment opportunities.
"But in a tougher overall growth environment where the US economy looks like a better bet and the potential for explosive risk in the euro-zone goes away, concerns over emerging markets and their future will again receive closer attention.
"Emerging markets will have much more volatility and instability than advanced industrial democracies," it said.
On 'Arab Summer', it said that the wold was talking about an Arab Spring barely more than a year ago.
"Middle East dictators were facing a wave of domestic dissent; international observers wondered whether it could be that the 'end of history' from Eastern Europe and the former Soviet Union would come to the Middle East.
"That has morphed not into 'Arab winter', where dictators rebound and consolidate power, but a long, hot, Arab summer – with radicalised movements, sectarian and Islamist, playing a much more important role," it added.
About the fourth-ranked Washington Politics, Eurasia group said that "2013 should be a year for reform progress and renewed economic dynamism in the US... But every silver lining has a dark cloud, and dysfunctional American politics will weigh on both the economic recovery and the president's legislative agenda."