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🇬🇷 Greece /Economy & Trade

The Gulf economies are the war’s biggest losers

From Kathimerini · () Greek

Translated from Greek and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Ongoing story
  • Gulf economies are absorbing heavy losses as the US-Iran conflict enters its seventh month and regional governments revise their economic strategies.
  • Events have been postponed or moved, luxury hotel occupancy has fallen to 56% from 80% a year earlier, and businesses have cut staff.
  • Dubai has suffered sharp declines in property sales, passenger traffic and cargo volumes, while the blockade of the Strait of Hormuz has raised import costs.

The Gulf states are emerging as the biggest losers from the seventh month of the US-Iran conflict. Qatar, Bahrain, Saudi Arabia and the United Arab Emirates are being forced to align long-term economic plans with a new geopolitical reality.

The disruption is already visible in the region’s calendar. Saudi Arabia’s Formula 1 event has moved to Malaysia, while the 2026 Esports World Cup has shifted from Riyadh to Paris. Major concerts have also been cancelled, including a UAE festival featuring Shakira that will not take place for the first time this year.

Luxury hotels have seen occupancy plunge to 56% in the first half of the year, down from 80% the previous year. The decline has led to staff layoffs. Aviation, real estate, tourism and shipping remain under severe pressure across the region, while supply chains face delays and rerouted containers because of the prolonged blockage of the Strait of Hormuz.

Those disruptions have driven up the cost of imported goods as businesses contend with weaker demand. “When this situation ends, it will take at least six months for normality to return,” said Rafael Kanoyan, chief executive of the UAE’s Al Ryum Group. He said shipping delays had sent prices soaring for goods ranging from heavy machinery to imported beer.

Dubai has taken a particularly hard hit. The index of listed property developers has lost about one-third of its value, home sales fell 31% in the spring, and sales of luxury properties worth more than $4 million dropped 59%. Passenger traffic declined 31% and cargo shipments 29% over the same period. European and North American airlines, including Air Canada, KLM and Lufthansa, have extended suspended flights to Dubai, in some cases until next year. Business leaders in the city’s most affected sectors now fear that the economic recovery will be significantly delayed.

When this situation ends, it will take at least six months for normality to return.

· Rafael KanoyanThe Al Ryum Group chief executive described the likely recovery period after the prolonged disruption.
About this summary

Originally published by Kathimerini in Greek. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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