To sustain global influence, Gulf economies recalibrate foreign investments as war drains revenues
To sustain global influence, Gulf economies recalibrate foreign investments as war drains revenues Gaspard Rouffin on Fri, 09/04/2026 - 11:46 Closure of Hormuz is forcing GCC states to balance domestic infrastructure and overseas economic ambitions for political influence to maintain soft power A general view shows Abu Dhabi's skyline across the Gulf waters in the Emirati capital (Karim Sahib/AFP) Off Economies across the Gulf Cooperation Council (GCC), comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, have all felt the fallout from the US-Israeli war on Iran, which has had a profound effect on investment across the region. Foreign investment into the region has fallen sharply, by as much as 67 percent since the war began in February, as the uncertainty over key trade routes like Hormuz and Bab al-Mandeb has added to the concerns. The Gulf states’ own ability to invest abroad, a pillar of their international financial and political weight in recent decades, has also come under strain. That strain has forced a series of recalibrations, both to outbound investment flows and to domestic spending more broadly, adding to already downward-revised ambitions, particularly
To sustain global influence, Gulf economies recalibrate foreign investments as war drains revenues Gaspard Rouffin on Fri, 09/04/2026 - 11:46 Closure of Hormuz is forcing GCC states to balance domestic infrastructure and overseas economic ambitions for political influence to maintain soft power A general view shows Abu Dhabi's skyline across the Gulf waters in the Emirati capital (Karim Sahib/AFP) Off Economies across the Gulf Cooperation Council (GCC), comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, have all felt the fallout from the US-Israeli war on Iran, which has had a profound effect on investment across the region. Foreign investment into the region has fallen sharply, by as much as 67 percent since the war began in February, as the uncertainty over key trade routes like Hormuz and Bab al-Mandeb has added to the concerns. The Gulf states’ own ability to invest abroad, a pillar of their international financial and political weight in recent decades, has also come under strain. That strain has forced a series of recalibrations, both to outbound investment flows and to domestic spending more broadly, adding to already downward-revised ambitions, particularly
