Iran War fiscal pressure may lead Gulf states to prioritize domestic investments over US commitments, PIIE report says
A new analysis from the Peterson Institute for International Economics (PIIE) indicates that the ongoing conflict between the United States and Iran is creating fiscal pressure for Saudi Arabia, Qatar, and the United Arab Emirates. This pressure may cause these Gulf nations to prioritize domestic investments over nearly $4 trillion in economic commitments made to the US under the Trump administration's "America First" agenda. The report notes that the war has significantly weakened their fiscal positions and economic prospects, leading the International Monetary Fund (IMF) to cut Qatar's 2026 growth forecast by 14.7 percentage points to 8.6%, Saudi Arabia's from 4.5% to 1.7%, and the UAE's from 5.6% to 1.7%. Saudi Arabia's Public Investment Fund has already reduced its international investment allocation from 30% in 2020 to 20% over the last six years.
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Source:半岛电视台 · Source Link
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