GCC economies face steepest downturn since pandemic as US‑Israel‑Iran conflict disrupts energy markets and threatens Strait of Hormuz.
2026 growth forecasts cut: Qatar -6.0%, Kuwait -4.4%, Bahrain -2.9% contract; UAE stagnates; Saudi Arabia 2.6% and Oman 2.2% modest growth.
Inflation expected to rise region‑wide, with Bahrain’s 2026 rate forecast at 2.4%, while tourism and retail sectors face sharp declines.
If conflict ends soon, 2027 growth could rebound to 7.8% for Qatar, 5.4% UAE, 5.0% Kuwait.