As a result of the war in the Middle East, direct material damage inflicted on the Gulf Arab states has exceeded $200 billion, with the bulk of the losses affecting various economic sectors and energy infrastructure.
Sea-news.az reports citing the Kuwaiti newspaper “Al-Anba,” that according to a report by financial risk assessment firm “Allianz Trade,” the region’s total economic losses could reach $790 billion by 2030.
It is noted that during the war, Gulf Arab states were subjected to Iranian attacks targeting oil infrastructure, energy facilities, airports, seaports, military bases, and other physical assets. Furthermore, obstructions to shipping since the outbreak of the war in the Strait of Hormuz—strategically vital for transporting petroleum products—have triggered a sharp surge in global oil prices.
“Allianz Trade” titled its report “Profound Impacts of the War on the Gulf: $790 Billion in Losses by 2030 and the Beginning of a New Borrowing Cycle.” The report states that direct material damage across the region surpasses $200 billion, with the majority of losses recorded in economies reliant on the Strait of Hormuz, particularly within energy infrastructure. Over 80 energy facilities were damaged during the conflict, most of which are located in Kuwait, Qatar, and Bahrain, with roughly one-third sustaining severe damage.
The report also notes that the war has adversely impacted other sectors, including tourism and real estate, where economic growth is projected to weaken in the coming years. Notably, residential real estate prices in Dubai declined by 10.2 percent by September compared to the peak recorded at the start of the year. The report emphasizes that between 2026 and 2030, cumulative gross domestic product (GDP) losses relative to pre-war growth forecasts will equal 5.9 percent—a figure reflecting the gap between the economic output the region could have achieved had pre-war growth rates continued and the projected post-war economic performance.
