MenuThe war with Iran and the recurrent closures of the Strait of Hormuz have rattled financial markets across the globe, but the greatest immediate costs are being borne by the Arab Gulf states, long safe havens of domestic and international investors. Missile strikes and drone attacks have damaged critical facilities, disrupted aviation, and undermined the aura of stability that had long distinguished these states in the often-turbulent Middle East. According to the April 2026 IMFRegional Economic Outlook Update, flight departures fell by roughly one-third in Abu Dhabi, about two-thirds in Dubai, and approximately three-quarters in Doha during the first months of the conflict, while some Gulf airports experienced complete suspensions. Infrastructure of all types was damaged, and the myth of safety was shattered.
Read the full article here.