War Damage and Iranian Aggression Cost Gulf States $200 Billion in Losses
Allianz Trade report expects Gulf losses to reach $790 billion by 2030 due to the Iranian war
Translated by Qiyas from الأنباء — Original source
Material damages caused by the Middle East war on Gulf Arab states have exceeded $200 billion, with the majority concentrated in energy-sector economies and infrastructure. Allianz Risk Consulting, a firm specializing in financial risk assessment, projected in a report that the region will incur losses worth $790 billion by 2030.
During the war, Gulf Arab states faced attacks by Iran targeting oil infrastructure, energy facilities, airports, ports, military bases, and other physical assets. Since the outbreak of the conflict, Tehran has disrupted navigation in the vital Strait of Hormuz for the transport of petroleum products, leading to a sharp rise in global oil prices.
Allianz Risk Consulting titled its report “The Deep Impact of the War on the Gulf: $790 Billion in Losses by 2030 and the Start of a New Borrowing Era.” The report stated that “material damages across the region are estimated at over $200 billion, with most concentrated in economies dependent on the Strait of Hormuz, particularly in energy infrastructure.”
It noted that more than 80 energy facilities were damaged during the war, mostly in Kuwait, Qatar, and Bahrain, with one-third suffering “severe damage.” The report also highlighted that the war negatively affected other sectors such as tourism and real estate, predicting a slowdown in their growth in the coming years. It added that residential property prices in Dubai fell by 10.2 percent by September compared to their peak earlier in the year.
The report concluded that the total cost of the war on Gulf Cooperation Council (GCC) states would reach “$790 billion, with a cumulative gap equivalent to 5.9 percent of GDP compared to pre-war growth rates through 2030.” It clarified that this “reflects the cumulative loss in economic output during the 2026–2030 period, representing the difference between what the region was expected to produce according to its pre-war growth rate and what is now projected to be produced post-war.”
