WEB DESK: Saudi Arabia, the United Arab Emirates, Kuwait, and Qatar are considering reducing or potentially withdrawing from certain contracts and investment commitments with the United States as tensions related to the Iran war continue to affect the region.
Officials from these Gulf nations have begun reviewing their financial exposure as the conflict and wider market uncertainty place increasing pressure on their economies. The governments are assessing whether long-term overseas investments and agreements remain viable under current conditions.
Sources say the economic strain caused by the ongoing US-Israeli conflict with Iran has pushed Gulf states to reconsider foreign financial commitments. Budget pressures linked to the war could lead them to scale back investment pledges, sponsorship deals, business contracts, and even the sale of assets abroad.
A Gulf official, who declined to identify the countries involved, said that three of the region’s major economies had already discussed the issue collectively. The discussions reportedly focus on ways to reduce financial risk if the conflict continues.
The official explained that some governments have started evaluating whether force majeure clauses could be applied to existing agreements. They are also reviewing current and planned investments to limit the potential economic impact if the war persists.
The financial pressure comes from several factors, including declining energy revenues caused by slower production or shipping difficulties, along with reduced income from tourism and aviation. At the same time, defense spending across the region has increased.
Prominent Emirati businessman Khalaf Al Habtoor also voiced frustration over the situation in a post on X directed at Donald Trump.
He questioned the decision that led to the conflict, asking who had the authority to involve the region in a war with Iran and whether the consequences for Gulf countries had been considered beforehand.
Al Habtoor also noted that Gulf states were expected to help finance plans to rebuild Gaza Strip and support broader regional initiatives promoted by Washington. He emphasized that Gulf nations had already invested billions to promote stability and development in the region.
He added that these countries now have the right to question whether their financial contributions are supporting peace efforts or indirectly funding a conflict that could put their own security and economies at risk.
