Gulf economies accelerate diversification as recession looms over Iran war

South China Morning Post - Oct 25, 2026

Before the outbreak of the war triggered by the US-Israeli attack on Iran in February, the Gulf monarchies were living the prosperity dream that was the envy of the world. Their hydrocarbon-fuelled economies were glitzy oases of growth, inoculated from the conflict in Gaza that had rocked other parts of the Middle East for several years. Underpinned by decades-old US security guarantees and conflict mediation by billionaire sheikhs, Saudi Arabia, the United Arab Emirates and Qatar cultivated...

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