Qatar

With Iran, Qatar is balancing dialogue with deterrence.

The Iran conflict has arrived at the worst possible moment for Gulf sustainable finance, a sector already navigating fiscal strain, a global ESG backlash, and the unresolved tension between hydrocarbon revenue and transition capital.

March readings of the purchasing managers’ index showed a substantial deterioration in business conditions in Saudi Arabia and the rest of the Gulf.

For the Gulf Arab countries, the future is more important than the present, but it is unclear if Iran, the United States, and Israel have the same vision.

The imperative for Gulf states to unify their position has grown since the onset of Iranian attacks on their countries. Yet under conditions of uncertainty about the U.S. position and the war's outcome, Gulf states are demonstrating differing regional alignments and preferences for managing the crisis.

The true economic and societal impact of the conflict may not be driven by headline events alone but by the gradual erosion of the systems that underpin daily life.

The Gulf is being significantly affected by the conflict with Iran, but the size of the economic hit varies among countries.

The war is demonstrating that missile defense can blunt Iran’s strategy – but only if the United States and its regional partners ensure that their defenses can keep pace with the scale and speed of future conflicts.