Gulf Cooperation Council economies face worst crisis since pandemic amid war spillovers
Updated
Updated · Reuters · Apr 27
Gulf Cooperation Council economies face worst crisis since pandemic amid war spillovers
13 articles · Updated · Reuters · Apr 27
Qatar, Kuwait, and Bahrain are now forecast to contract 6.0%, 4.4%, and 2.9% in 2026, reversing earlier growth projections due to war-driven energy disruptions.
The near-total closure of the Strait of Hormuz and damage to refineries have crippled regional economies, while even Saudi Arabia and Oman expect sharply reduced growth compared to January forecasts.
Economists anticipate a quick rebound in 2027 if the conflict ends soon, but inflation is rising across the Gulf, and recovery depends on restoring energy infrastructure and supply chains.
As Gulf supply chains fail, which emerging economies are poised to become the world's new workshops?
Will this crisis finally shatter the Gulf's oil dependency or entrench it for security?
Could high oil prices let Gulf wealth funds turn this crisis into a strategic investment opportunity?
How will strikes on Gulf energy sites reshape global defense strategy for critical infrastructure?
Can Oman and Saudi Arabia's ports dethrone Dubai as the Middle East's primary logistics hub?
With Qatari LNG offline for years, how will Europe secure its energy supply for coming winters?