With the war-torn world economy, Gulf countries are rethinking all commercial investments

The pressure on the world economy is increasing due to the impact of the Iran War. Key Gulf countries such as Saudi Arabia, the United Arab Emirates, Kuwait and Qatar are renegotiating their investment obligations, commitments and trade agreements as the US-Israeli military aggression against Iran continues to put pressure on their economies, The Financial Times reported.

Quoting Gulf leaders, the Times said in its report that the countries have begun domestic discussions to examine whether to apply the ‘fos maja’ clause (temporary or permanent exemption of parties concerned from contractual obligations in the event of war, natural disasters) to existing treaties. They are also reviewing current and future investment commitments to ease the war-related financial burden. The review may also affect foreign governments, investment assurances to companies, sports sponsorship deals, agreements with international business organizations, the report said. The Times reports that increasing defense spending, reducing energy exports are increasing the financial burden on the government budgets of the Gulf countries. The whole matter has come to the attention of the White House.

Increase in defense spending, decline in energy exports is increasing the financial burden on the government budgets of the Gulf countries. The whole matter has come to the attention of the White House.

Financial stability in the Gulf has been battered by the Israeli-US military conflict with Iran. Profits in the energy business have fallen sharply. After the attack on several tankers in the current conflict, the movement of crude oil, cargo ships and tankers through the Strait of Hormuz is slow. One-fifth of the world’s total oil and gas supply goes through there. After Iran’s attacks on US military bases, embassies and their various infrastructures in the Gulf world, tourism and air travel have also been hit.

Last year, President Donald Trump visited the Gulf world. Gulf countries pledged to invest hundreds of billions of dollars in America. If the promised investment slows down, pressure on Washington to push for a diplomatic solution to end the war could also increase.
In the meantime, influential people in the Gulf business community have begun strongly condemning the ongoing military conflict. Targeting Trump, Dubai billionaire Khalaf Ahmed Al Habtoor questioned the decision to attack Iran in X Post. Wrote, who gave you the power to engage in war with Iran in this region? What is your basis for this dangerous decision? Did the trigger tapper calculate the potential damage beforehand? Have you thought that if the conflict increases, the first victims will be the Gulf countries!