Beyond the War, a New Gulf Business Environment is Emerging
Beyond the War, a New Gulf Business Environment is Emerging
The briefing analyzes how the prolonged conflict with Iran is reshaping the business environment across the Gulf. It explores how companies are adapting through greater resilience, self-sufficiency and supply-chain diversification, while new regional tensions create additional risks for trade and investment.
Executive Summary
The ongoing conflict with Iran has impacted Gulf countries differently: Only a few, such as United Arab Emirates (UAE), Qatar and Saudi Arabia have the financial means to weather the uncertainty by creating incentives to retain businesses.
The war has also revived arguments for greater economic self-sufficiency, multi-corridor connectivity to diversify supply chains, and making infrastructure more resilient, both through physical hardening and buiding mini grids.
While the economics are encouraging greater integration, differences over the handling of the conflict as well as relations with Iran and Israel have led to greater divisions and creating new geopolitical dynamics.