Wealthy Gulf states review investments amid US, Israeli conflict with Iran

Saudi Arabia, the United Arab Emirates and Qatar are considering suspending international investments and sponsoring projects due to the continued military actions of the US and Israel against Iran, the Financial Times reports.

The main reason for such a review is the growing strain on the budgets of these countries due to the reduction in energy revenues, caused by the slowdown in production and supply problems due to the blockade of the Strait of Hormuz. Additional factors are the decline in tourism and aviation revenues, as well as rising defense spending.

Gulf officials say that the countries have launched internal audits of contracts and investments, checking the possibility of applying force majeure clauses in current agreements. At the same time, they are assessing future investment commitments to mitigate the economic pressure caused by the conflict.

According to the Financial Times source, three of the region’s four key economies — Saudi Arabia, the UAE and Qatar — are actively discussing the strain on their budgets and economies. Kuwait is also participating in these consultations, but its influence is smaller.

These countries manage some of the world’s largest and most active sovereign wealth funds. Last year, they pledged to invest hundreds of billions of dollars in the United States after President Donald Trump visited the region. In addition, Saudi Arabia, the UAE and Qatar are significant sponsors of sporting events around the world and are investing in domestic projects to develop their economies and diversify their sources of income.

Any suspension of investment or sponsorship projects in the United States and other Western countries could increase pressure on the Trump administration to find a diplomatic solution to the conflict and reduce tensions in the region. Analysts emphasize that the decision of the wealthy Gulf states will directly affect global financial flows and the sports projects they support.