Iran war causes $200 billion in damage in Gulf
By the AFREEQUE newsroom, based on Seneweb
According to an Allianz Trade report, the war between Iran and the United States caused about $200 billion in material damage in Gulf countries, with more than 80 energy facilities affected in Kuwait, Qatar and Bahrain. Economic losses could quadruple by 2030, according to the same source.
The war between Iran and the United States caused just over $200 billion in material damage in the six Gulf Cooperation Council (GCC) countries, according to an AllianzTrade report published on Wednesday and cited by Seneweb. More than 80 energy facilities were affected, mainly in Kuwait, Qatar and Bahrain, and one-third of them suffered severe damage.
The report estimates that the cumulative economic cost of the war for Gulf countries could reach $790 billion by 2030, equivalent to a 5.9% shortfall in gross domestic product compared with the trend expected before the conflict. According to AllianzTrade, this estimate corresponds to the economic output the region would not achieve between 2026 and 2030 compared with that trajectory.
The conflict has also affected the tourism and property sectors, whose growth is expected to slow in the coming years. AllianzTrade estimates that the losses are concentrated in economies dependent on the Strait of Hormuz, particularly around energy infrastructure, reports Seneweb.
The report covers Saudi Arabia, Oman, Qatar, Bahrain, the United Arab Emirates and Kuwait. It recommends that Gulf states increase domestic spending, as public priorities shift from megaprojects towards resilience and security, according to Seneweb.
