The Iran war has undermined the Gulf’s efforts to fashion itself as a financial and cultural center.
Regional capitals have courted the global high-finance set, Semafor’s business editor noted, but drones striking elite hotels and interceptor missiles launching near the Burj Khalifa showed that Gulf hubs were instead “a nice house in a rough neighborhood.”
The conflict will strain Gulf economies and may force them to reduce overseas investments, the Financial Times reported.
Other sectors face a new reality, too: Abu Dhabi, Doha, and Dubai have become major airline hubs, but a long-lasting crisis could cause permanent damage, while tourism and sports are also at risk: F1 is considering dropping next month’s races in Bahrain and Saudi Arabia.