The Aporia
Hussain, T. (2026, October 25). Gulf economies accelerate diversification as recession looms over Iran war. South China Morning Post. https://www.scmp.com/week-asia/economics/article/3371922/gulf-economies-accelerate-diversification-recession-looms-over-iran-war
Hussain, Tom. “Gulf economies accelerate diversification as recession looms over Iran war.” South China Morning Post, 25 Oct. 2026, https://www.scmp.com/week-asia/economics/article/3371922/gulf-economies-accelerate-diversification-recession-looms-over-iran-war.
Hussain, Tom. “Gulf economies accelerate diversification as recession looms over Iran war.” South China Morning Post, October 25, 2026. https://www.scmp.com/week-asia/economics/article/3371922/gulf-economies-accelerate-diversification-recession-looms-over-iran-war.
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As a looming recession casts a shadow over the region due to ongoing conflict with Iran, Gulf economies are rapidly accelerating economic diversification efforts. Despite an expected worsening of the economic downturn, Saudi Arabia, the United Arab Emirates (UAE), and Qatar are planning significant investments in infrastructure amounting to tens of billions of dollars. Before the recent war sparked by a US-Israeli attack on Iran, these monarchies were seen as prosperous havens amidst regional instability, with their hydrocarbon-driven economies fostering growth and attracting global investment through extensive economic diversification programs. Supported by sovereign wealth funds holding trillions in Western investments, GCC states are transforming to reduce reliance on oil and gas, aligning with the global shift towards renewable energy sources.