{"id":4227,"date":"2026-11-11T19:03:44","date_gmt":"2026-11-11T14:03:44","guid":{"rendered":"https:\/\/ipp-news.com\/?p=4227"},"modified":"2026-11-11T19:03:44","modified_gmt":"2026-11-11T14:03:44","slug":"war-cost-gulf-over-200bn-in-damage-790bn-losses-until-2030-insurer","status":"publish","type":"post","link":"https:\/\/ipp-news.com\/?p=4227","title":{"rendered":"War cost Gulf over $200bn in damage, $790bn losses until 2030: insurer"},"content":{"rendered":"
\n

The US-Iran war will cost Gulf countries more than $200 billion in damage and economic losses could reach nearly four times that amount by 2030, insurer Allianz Trade said on Wednesday.<\/strong><\/p>\n

Gulf countries bore the brunt of Tehran\u2019s wrath after the United States and Israel launched attacks on Iran on February 28, triggering the war.<\/p>\n

In retaliation, Iran restricted shipping in the key strait of Hormuz and struck civilian infrastructure including airports, seaports, energy facilities, landmarks and American assets in the US-allied countries.<\/p>\n

\u201cPhysical damage across the region is assessed just above $200bn, mostly concentrated in Hormuz-locked economies, especially in energy infrastructure,\u201d the insurer said in a report.<\/p>\n

More than 80 energy facilities were hit in the war, mostly in Kuwait, Qatar and Bahrain, the report said, with a third of them \u201cseverely damaged\u201d.<\/p>\n

Beyond physical damage to energy infrastructure, the war has affected other sectors like tourism and real estate, which will see slower growth over the years.<\/p>\n

\u201cThe total cost of the war for the GCC is set to reach $790bn, a cumulative gap of 5.9 per cent of GDP relative to the pre-war trend through 2030,\u201d the report said.<\/p>\n

\u201cThis reflects the cumulative loss of economic output over 2026-30, the difference between what the region was forecast to produce on its pre-war growth trend and what it is now projected to produce post-war,\u201d it said.<\/p>\n

To make up for the losses, Gulf states are expected to reallocate sovereign wealth fund capital to domestic projects.<\/p>\n

External surplus is expected to be halved but will be \u201cpartially offset with increased repatriation of sovereign wealth fund capital\u2026 of around $120bn of extra domestic investment through 2030 to the detriment of international investment,\u201d the report said.<\/p>\n

\u201cThe war accelerates the need to spend more domestically as government priorities have shifted away from mega-projects towards resilience – and security-related ones,\u201d it added.<\/p>\n

Gulf states are expected to raise their domestic infrastructure and defence spending to $380-400bn through 2030, the report said, providing \u201can opportunity of around $160bn for private and foreign investors\u201d.<\/p>\n

Despite war and restricted access to Hormuz and the Bab al-Mandab strait, Saudi oil giant Aramco announced a 34.6 per cent surge in third-quarter net profit last week, as Iran\u2019s restrictions in the Strait of Hormuz drive oil prices up.<\/p>\n

The IMF expects Saudi Arabia, one of the world\u2019s biggest oil producers, to end the year with a 3.3 per cent contraction in GDP, five percentage points lower than its previous forecast in July.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The US-Iran war will cost Gulf countries more than $200 billion in damage and economic losses could reach nearly four times that amount by 2030, insurer Allianz Trade said on Wednesday. Gulf countries bore the brunt of Tehran\u2019s wrath after the United States and Israel launched attacks on Iran on February 28, triggering the war. In retaliation, Iran restricted shipping in the key strait of Hormuz and struck civilian infrastructure including airports, seaports, energy facilities, landmarks and American assets in the US-allied countries. \u201cPhysical damage across the region is assessed…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-4227","post","type-post","status-publish","format-standard","hentry","category-english"],"gutentor_comment":0,"_links":{"self":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/4227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4227"}],"version-history":[{"count":0,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/4227\/revisions"}],"wp:attachment":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}