At the end of 2025, the Gulf states received high praise for their economic resilience. According to reports by the World Bank and the World Economic Forum, the region was stable, modern and reliable.
Now the six countries of the Gulf Cooperation Council (GCC) – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – are watching on nervously. The economic damage done by what has become a regional conflict, bringing an abrupt loss of stability, could be huge.
Aside from Saddam Hussein’s foray into Kuwait in 1991, these six countries have successfully steered clear of conflict on their home turf over a long period. They avoided the revolutionary upheavals which affected Egypt (1952), Iraq, Syria and Iran (1979). They steered clear of any spillover from the long-running Israel-Palestine conflict.
