Latest news with #GulfNations
Asharq Al-Awsat
3 days ago
- Business
- Asharq Al-Awsat
Economists Warn of Global Trade Risks from Israel-Iran Conflict
Economic experts have warned that a protracted conflict between Israel and Iran could have far-reaching repercussions on the global economy, driving up energy prices and disrupting key sectors including aviation, insurance, trade, and maritime navigation. Speaking to Asharq Al-Awsat, Saudi Shura Council member Fadl Al-Buainain said the ongoing military confrontation is already impacting global energy markets, with oil prices spiking to multi-month highs in the immediate aftermath of the outbreak. He warned that continued Iranian threats to close the strategic Strait of Hormuz could further fuel the surge in energy prices. 'Such an act would be hostile, not only to Gulf nations but also to global consumers, compounding the challenges already facing the world economy', Al-Buainain said. He stressed that the energy sector is particularly vulnerable to military escalations. 'Any disruption to oil production or exports from major producers could send oil and gas prices skyrocketing, with direct consequences for global economic stability', he said. While current military actions have had limited impact on output and exports, Al-Buainain cautioned that any direct strikes on energy infrastructure could push oil prices above $100 per barrel, depending on how badly global supply chains are hit. The conflict has already disrupted international flight routes and increased operational costs for airlines, he said, while surging risk premiums have driven up insurance costs across the region. Maritime trade and shipping lanes are also at risk of direct disruption. Al-Buainain noted that the fallout will vary across the region. He pointed out that Saudi Arabia, thanks to its strategic location and Red Sea ports, is better positioned to maintain the flow of trade. The kingdom also benefits from pipelines that transport oil from the east to the west, partially shielding its exports from Gulf disruptions. He described energy as the 'real engine' of the global economy and said it, along with foreign trade, will bear the brunt of the economic impact. "But the human cost and developmental setbacks caused by war are far worse', he added. Al-Buainain warned that prospects for a swift diplomatic resolution are diminishing. 'Starting wars is easier than ending them,' he said, adding that an Iranian move to shut down Hormuz, while difficult in practice, could spark a direct confrontation with global powers, particularly the United States. 'If American interests are attacked, Washington could be drawn into the conflict, which risks expanding beyond control'. Khaled Ramadan, head of the Cairo-based International Center for Strategic Studies, said Israel's strikes on Iranian energy infrastructure, including the Abadan refinery, which has a capacity of 700,000 barrels per day, could severely reduce oil and gas supplies if the conflict drags on. He told Asharq Al-Awsat that Brent crude had already risen 8–13% following the escalation, crossing $78 per barrel. 'Should the Strait of Hormuz be closed, we could see oil prices surge to record levels', he warned. Ramadan said the conflict could also disrupt global supply chains, especially through Hormuz, affecting non-oil goods such as electronics and food. Shipping and insurance costs would rise, leading to higher consumer prices and a slowdown in global trade. Food staples such as wheat and corn, along with petrochemicals, garments, electronics, auto parts, and pharmaceuticals are all likely to see price increases, he said, citing higher energy and transport costs as well as declining market confidence. Ramadan added that the economic fallout includes rising inflation, weakening currencies, and a drop in investment — particularly in tourism and tech. 'The Iranian rial and Israeli shekel have already hit their lowest levels this year,' he noted, adding that the war could reshape global energy alliances, with Europe increasingly seeking alternative suppliers.
The Independent
12-06-2025
- Politics
- The Independent
Iran's nuclear programme may get bombed by Israel. That would be bad for America - but not Trump's friends
Donal Trump has a problem – his affections appear to have been divided - because of Iran. Vladimir Putin, who he sees as a model leader, and Benjamin Netanyahu, who has a tough guy vibe the US President finds irresistible, are on opposite sides over Tehran's march towards nuclear weapons. The UN's International Atomic Energy Authority has just announced that Iran is in breach of its non-proliferation obligations. Iran says it has been warned by a 'friendly country' that Israel may attack its nuclear facilities. Israel fears Tehran is building a Bomb and its leaders have frequently pledged to wipe the Jewish state off the face of the earth. The Trump administration has seen this coming. The defence department has re-routed 20,000 air defence missiles destined for Ukraine to US forces in the Middle East. The US is also drawing down on embassy staff, warning Americans to get out of Iraq, and generally bracing for what may be retaliation following a unilateral Israeli attack on Iran. Of course, such an attack would need to be supported by the US – not least in terms of air refuelling and logistical support. It would probably involve the use of US bombs and certainly US manufactured aircraft. Iran has ordered its armed forces are mobilized for drills focussed on 'enemy movements'. Gulf nations like Bahrain and the United Arab Emirates will be jittery – they've signed the Abraham Accords normalizing relations with Israel and, along with Qatar, have large US naval or air force bases on their territory. Trump has long derided the 2015 Joint Comprehensive Plan of Action agreed with Iran which dialled back its nuclear ambitions and has frequently warned Iran not to try to develop a nuclear weapon. He would be happy to see Israel take the initiative – after all he has defended Netanyahu's actions in Gaza, even putting sanctions on the International Criminal Court because is 'abused its power by issuing baseless arrest warrants targeting Israeli Prime Minister Benjamin Netanyahu and Former Minister of Defense Yoav Gallant'. But Russia is deeply involved in Iran's nuclear programme. Moscow has a long-standing programme to develop Iran civilian nuclear power industry and has already built the Bushehr I plant, is building the Bushehr II reactor and is planning on more at Sirik and Karun. Iran also supplies drones, built drone factories in Russia, helps with missile technology and is bound into Moscow's military-industrial complex at deep levels that have grown deeper with the Russian full-scale invasion of Ukraine. Iran is a key ally in Russia's war in Europe. Trump has maintained staunchly pro-Russian positions on Ukraine in demanding that any future peace deal leaves Russia in control of about a fifth of Ukraine, and out of Nato. Trump has taken Russia's side at UN refusing to condemn Moscow's invasion. He has stopped allocating military aid to Kyiv. A large-scale Israeli attack on Iran aimed at its nuclear programme would also have to focus on its wider military capabilities. Those are capabilities that Russia draws on. Trump has little real influence over Netanyahu and will not try, publicly anyway, to hold him back for fear of rejection. The Israeli Prime Minister has repeatedly shown that he's largely immune to pressure from the White House. But as Trump's agenda so far this year has been to undermine long-standing alliances and friendships with the US in favour of Israel and Russia – the threat of conflict between Israel and Iran doesn't tear at his loyalties. Israel could remove a growing nuclear threat from Iran's regime which has threatened annihilation. Russia is already benefitting from Ukraine's loss of 20,000 missiles. And if Iran counter attacks with assaults on US targets in the Middle East the US president is confident his forces could defend themselves. But pressure to further downgrade US involvement in the region will grow in Washington – and that suits Putin just fine. None of this would be good for America. But at home and abroad, that doesn't look like a priority for Trump – who consistently favours men like Putin and Netanyahu and who both may gain from chaos in the Middle East.
Bloomberg
07-06-2025
- Business
- Bloomberg
Best of the Qatar Economic Forum, Powered by Bloomberg
The Best of the Qatar Economic Forum, Powered by Bloomberg - bringing together some of the world's most influential thinkers, policy makers and business leaders to discuss how the global economy is transforming amid the changing geopolitical landscape, as Gulf nations emerge as key centers of financial power and opportunity. This special Bloomberg program highlights biggest interviews and news makers from the fifth edition of the annual forum that took place on May 20, 2025 in Doha. (Source: Bloomberg)
Zawya
06-06-2025
- Automotive
- Zawya
Vingroup and Gulf States Pursue Sustainability-Led Growth as Legacy Powerhouses Reinvent
Vietnam's Vingroup and Gulf states are both rewriting their growth playbooks through state-led sustainability drives, forging a parallel transformation from legacy empires into green innovation hubs. HANOI, VIETNAM - Media OutReach Newswire - 6 June 2025 - Vietnam's Vingroup and Gulf nations share parallel journeys of strategic reinvention, as the old playbooks that delivered decades of growth are showing their limits. While Gulf countries built wealth on fossil fuel, Vingroup created enormous value through real estate and hospitality. Both are now shifting beyond their legacy sectors: Vingroup focuses on digital innovation and sustainability, and the Gulf nations seeks to diversify beyond hydrocarbons. For them, strategic reinvention becomes the logical response. Not disruption for disruption's sake, but calculated transformation grounded in self-preservation and innovation. Their experiences offer valuable lessons on how legacy powerhouses can adapt to structural transformation. A new growth engine that's not oil The UAE and Qatar demonstrate how national strategy can drive transformation. The UAE's Net Zero by 2050 initiative links energy policy with investment decisions and foreign relations. Qatar's National Vision 2030 embeds environmental stewardship into economic planning. More than just being aspirational, these documents translate into concrete investments. For example, the UAE committed over $54 billion to clean energy infrastructure, while Qatar doubled its solar capacity to 1.675 GW by 2025[1], cutting CO₂ emissions significantly. Sovereign wealth funds play crucial roles. Mubadala and QIA direct capital into clean technology as diversification hedges, treating green investments as strategic portfolio moves that reduce long-term risk while capturing growth opportunities. A Southeast Asian reinvention Turning to Southeast Asia, the story Vingroup mirrors many of the same themes of strategic reinvention seen in the Gulf. Originally a property development powerhouse, the conglomerate diversified into other fields such as electric vehicle production, smart technology, and green manufacturing. VinFast, its automotive arm, delivered over 97,000 electric cars in 2024 and targets 200,000 deliveries in 2025. In the context of Vietnam aiming to become a high-income country in its "era of national rise", Vingroup functions as a national champion, building the country's first global EV brand while creating jobs and technological capabilities. The company's manufacturing complex in Hai Phong utilizes green practices and scales to serve both domestic and export markets. The broader ecosystem reflects systematic thinking. VinBus provides electric public transport in major cities. Smart homes in Vinhomes developments showcase energy efficiency. AI and IoT technologies optimize resource use across business lines. Each initiative reinforces the others. When green visions align Shared motivations drive collaboration. Both regions face climate urgency, pursue economic resilience, and seek global relevance. Complementary strengths make partnership logical. For example, the UAE's Masdar built Indonesia's largest floating solar plant[2]. Vingroup's EV arm, VinFast, opened regional showrooms and has signed several MOUs with regional reputable companies. Vietnam and the UAE signed their first trade pact, focusing on technology exchange. These ties leverage unique strengths: the Gulf states brings capital, energy expertise, and execution; Southeast Asia offers manufacturing, markets, and innovation capacity. In their collaboration, the Gulf states and Vingroup prove legacy players can align vision and capital for systemic change. Sustainability, when policy-led, becomes a growth pathway. Strategic reinvention turns challenges into advantages. Hashtag: #Vingroup The issuer is solely responsible for the content of this announcement. Vingroup
Associated Press
06-06-2025
- Business
- Associated Press
Vingroup and Gulf States Pursue Sustainability-Led Growth as Legacy Powerhouses Reinvent
Vietnam's Vingroup and Gulf states are both rewriting their growth playbooks through state-led sustainability drives, forging a parallel transformation from legacy empires into green innovation hubs. HANOI, VIETNAM - Media OutReach Newswire - 6 June 2025 - Vietnam's Vingroup and Gulf nations share parallel journeys of strategic reinvention, as the old playbooks that delivered decades of growth are showing their limits. While Gulf countries built wealth on fossil fuel, Vingroup created enormous value through real estate and hospitality. Both are now shifting beyond their legacy sectors: Vingroup focuses on digital innovation and sustainability, and the Gulf nations seeks to diversify beyond hydrocarbons. Vinhomes Ocean Park 1 urban area, part of the Vingroup ecosystem For them, strategic reinvention becomes the logical response. Not disruption for disruption's sake, but calculated transformation grounded in self-preservation and innovation. Their experiences offer valuable lessons on how legacy powerhouses can adapt to structural transformation. A new growth engine that's not oil The UAE and Qatar demonstrate how national strategy can drive transformation. The UAE's Net Zero by 2050 initiative links energy policy with investment decisions and foreign relations. Qatar's National Vision 2030 embeds environmental stewardship into economic planning. More than just being aspirational, these documents translate into concrete investments. For example, the UAE committed over $54 billion to clean energy infrastructure, while Qatar doubled its solar capacity to 1.675 GW by 2025[1], cutting CO₂ emissions significantly. Sovereign wealth funds play crucial roles. Mubadala and QIA direct capital into clean technology as diversification hedges, treating green investments as strategic portfolio moves that reduce long-term risk while capturing growth opportunities. A Southeast Asian reinvention Turning to Southeast Asia, the story Vingroup mirrors many of the same themes of strategic reinvention seen in the Gulf. Originally a property development powerhouse, the conglomerate diversified into other fields such as electric vehicle production, smart technology, and green manufacturing. VinFast, its automotive arm, delivered over 97,000 electric cars in 2024 and targets 200,000 deliveries in 2025. In the context of Vietnam aiming to become a high-income country in its 'era of national rise', Vingroup functions as a national champion, building the country's first global EV brand while creating jobs and technological capabilities. The company's manufacturing complex in Hai Phong utilizes green practices and scales to serve both domestic and export markets. The broader ecosystem reflects systematic thinking. VinBus provides electric public transport in major cities. Smart homes in Vinhomes developments showcase energy efficiency. AI and IoT technologies optimize resource use across business lines. Each initiative reinforces the others. When green visions align Shared motivations drive collaboration. Both regions face climate urgency, pursue economic resilience, and seek global relevance. Complementary strengths make partnership logical. For example, the UAE's Masdar built Indonesia's largest floating solar plant[2]. Vingroup's EV arm, VinFast, opened regional showrooms and has signed several MOUs with regional reputable companies. Vietnam and the UAE signed their first trade pact, focusing on technology exchange. These ties leverage unique strengths: the Gulf states brings capital, energy expertise, and execution; Southeast Asia offers manufacturing, markets, and innovation capacity. In their collaboration, the Gulf states and Vingroup prove legacy players can align vision and capital for systemic change. Sustainability, when policy-led, becomes a growth pathway. Strategic reinvention turns challenges into advantages. [1] [2] Hashtag: #Vingroup The issuer is solely responsible for the content of this announcement.
