According to reports from the Financial Times, Saudi Arabia, United Arab Emirates, Kuwait, and Qatar are discussing whether to scale back or withdraw from certain contracts and future investment commitments with the United States.
Reports suggest that the potential move comes as regional economies feel pressure from the ongoing conflict and instability linked to the Iran war and shifting global markets. Gulf leaders are reportedly evaluating financial exposure and long-term investment risks before making major capital commitments abroad.
Pressure on the Gulf states’ budgets could cause them to review their overseas investments and future commitments as they consider options to ease the financial strain caused by the US-Israeli war against Iran.
A Gulf official said it could have an impact on anything from investment pledges to foreign states or companies, sports sponsorships, contracts with businesses and investors, or sales of holdings.
The official said three of the four big Gulf economies — Saudi Arabia, the United Arab Emirates, Kuwait and Qatar — had jointly discussed the strains being put on their budget and economies. But they declined to name the states.
“A number of Gulf countries have begun an internal review to determine whether force majeure clauses can be invoked in current contracts, while also reviewing current and future investment commitments in order to alleviate some of the anticipated economic strain from the current war,” the official said. “Especially if the war and related expenses continue at the same pace.”
They added that the move was a precautionary measure that was the result of “the budget strains these countries are facing due to reduced income from energy, due to the slowdown in output or the inability to ship, [and from the] tourism and aviation sectors, in addition to the increase in defence spending”.
Khalaf al-Habtoor, a prominent Emirati businessman, reflected Gulf frustrations about being dragged into a war triggered by the US and Israel in a social media post addressed to Trump.
“A direct question: Who gave you the authority to drag our region into a war with #Iran? And on what basis did you make this dangerous decision?” he said on X. “Did you calculate the collateral damage before pulling the trigger?”
He pointed out that the Gulf states were expected to be major funders of Trump’s plan to rebuild Gaza and backers of his wider “Board of Peace”.
He said Arab Gulf countries had “contributed billions of dollars on the basis of supporting stability and development”, adding: “These countries have the right to ask today: where did this money go? Are we funding peace initiatives or funding a war that exposes us to danger?”
Courtesy: Financial Times
