Gulf states could start to review their overseas investments and future commitments as they consider options to ease the pressure on their budgets following the U.S.-Israeli attacks on Iran, the Financial Times reported on Thursday.
A Gulf official told the newspaper the conflict that has engulfed the region could have an effect on anything from investment pledges to foreign states or companies, sports sponsorships, contracts with businesses and investors, or sales of holdings, especially if the war and related expenses continue at the same pace.
euters could not immediately verify the report. FT did not disclose the name or the position of the official.
For decades, the Gulf’s rise rested on two core assumptions: that its rapidly growing cities offered safe haven in an unstable region and that vast wealth from uninterrupted energy exports would keep flowing. Recent events have shaken both pillars at once.
“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,” a Gulf official told FT.
