The Gulf economies face a nearly trillion dollar price tag from the US war in Iran.
The war between the US and Israel against Iran has become an expensive gamble on many fronts.
It has already cost the Persian Gulf economies more than $200 billion in physical destruction — especially in energy infrastructure, according to a report by insurance company Allianz Trade.
By 2030, the fallout threatens to wipe out $790 billion in projected economic growth.
The report states that:
Over 80 energy facilities were damaged by Iranian retaliatory attacks on US assets across the Gulf, mainly in Kuwait, Qatar and Bahrain; about a third were heavily damaged; airports, seaports and tourist landmarks were also damaged.
The Gulf economies could lose the equivalent of 5.9% of their combined GDP during 2026–2030 compared to pre-war projections.
Damage is expected to burden tourism and real estate.
Governments are expected to direct about 120 billion dollars from sovereign wealth funds to local investments to support the recovery - to cut capital for investments abroad.
Surplus income from trade and foreign holdings may drop by half.
Spending priorities shift from ambitious mega-projects to infrastructure, defense and economic resilience.
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