Saudi Arabia, UAE, Kuwait discussing to withdraw investments from US, others over war in Iran
Three of the Gulf’s four largest economies — Saudi Arabia, United Arab Emirates, and Kuwait — are reportedly in discussions about scaling back portions of their international investments, including holdings in the United States, as the economic impact of the escalating conflict with Iran intensifies, according to a report by Financial Times.
Officials familiar with the talks say government budgets across the region are coming under increasing pressure as energy revenues soften and regional disruptions affect shipping routes and tourism flows.
In response, some Gulf governments are said to be reassessing major overseas investment commitments.
Sources described the discussions as a “precautionary measure,” but analysts warn the implications could be significant. Gulf sovereign wealth funds collectively hold more than $2 trillion in U.S. assets, meaning even a partial withdrawal could ripple through global markets and major financial institutions.
The potential move is also being interpreted by some observers as a signal of economic pressure tied to the ongoing conflict — and could carry political implications for Donald Trump if the war continues to escalate and its financial consequences spread beyond the region.
