The latest:

Industrial investment across the six Gulf Cooperation Council states stands at roughly $426 billion, spread over some 22,000 factories with a workforce above 1.7 million, according to the GCC Statistical Centre’s latest available data through July 2026. The same data put manufacturing’s share of the bloc’s combined output at about 13% for 2025.

Details:

• The headline figure: The GCC Statistical Centre put total industrial investment in the bloc at approximately $426 billion, distributed across close to 22,000 operating factories. More than 1.7 million workers are employed in those facilities. The centre dated the numbers to the most recent statistics available as of July 2026.
• Share of output: Manufacturing industries accounted for roughly 13% of the GCC’s total gross domestic product during 2025. The centre framed that share as evidence of the sector’s role in supporting Gulf economies and in raising the weight of non-oil activity within them.
• Where the money sits: About 40% of Gulf industrial investment is concentrated in a cluster of basic industries that feed downstream and intermediate manufacturing. Plastics lead the group, followed by refined petroleum products, aluminium, gaseous fuels, and iron and steel.
• Export mix: Industrial products made up around 69% of total GCC exports. The leading categories were petroleum gases and hydrocarbons, petroleum oils, cars, organic compounds, aluminium, ships and boats, and electrical machinery and equipment.
• Top import partner: China ranked first among trading partners as the largest source of Gulf imports, with a 20% share. Imported goods were concentrated in equipment and machinery, cars, pharmaceutical products, iron and steel, and plastics, within what the centre described as a notably diverse supplier base.
• Uneven distribution: The centre said activity varies between member states in both investment volume and factory numbers, pointing to an industrial base that is widening rather than evenly spread. It did not publish a country-by-country breakdown of the investment or factory totals.
• Stated direction: The centre linked the indicators to efforts to expand productive capacity, develop value chains, deepen Gulf industrial integration, localise industries, and lift the competitiveness of Gulf products in global markets.
• Dating the data: All figures were presented as the most recent statistics available up to July 2026, with the GDP contribution measured over the 2025 calendar year. No timetable was given for the next statistical release.

Background:

The GCC Statistical Centre is the bloc’s joint statistics body, compiling comparable economic data across its member states. Its industrial series is used as a reference point for tracking diversification away from oil revenue.

Between the lines:

Two of the figures sit in tension. Industrial products account for 69% of exports, yet manufacturing contributes only about 13% of GDP — a gap explained by the investment concentration the centre itself reports, with 40% of spending in refined petroleum, gaseous fuels, aluminium and steel. Much of what is counted as industrial export remains hydrocarbon-derived, which narrows how far the data alone can demonstrate diversification.

What’s next

The next GCC Statistical Centre release would update the investment and factory totals, and show whether manufacturing’s 13% share of GDP moves in either direction. Country-level breakdowns, if published, would reveal how unevenly the investment is distributed.

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The latest:

Kuwait is in talks with Saudi Arabia and the United Arab Emirates on alternative outlets for its crude, Mohammed Al-Abdul Jalil, deputy chief executive for planning and innovation at Kuwait Oil Company, told CNBC Arabia. He said current output stands at 2 million barrels per day and that maximum capacity is higher. The main constraint, he said, is moving barrels out through the Strait of Hormuz.

Details:

• The output figure: Al-Abdul Jalil said Kuwait currently produces 2 million barrels per day, and that the country’s production capacity exceeds that level. He did not give a figure for maximum capacity or say whether Kuwait intends to lift output above the current rate.
• Damage assessment: The impact on Kuwaiti oil sector facilities from the attacks they were subjected to has been limited, according to the executive. He said the targeting of oil facilities did not affect production units, and that all Kuwaiti facilities are operating in terms of production capability.
• Repairs: Some of the targeted oil facilities were repaired quickly, Al-Abdul Jalil said, while others require a longer period of work. He did not identify which sites were hit, name the party behind the attacks, or give a timeline for completing the outstanding repairs.
• The real bottleneck: The largest effect on Kuwait’s oil sector is getting products out because of the Strait of Hormuz, the executive said. That framing places the problem downstream of the wellhead: barrels are being produced, but the single waterway carrying them to market is the constraint.
• Pipeline plans: Kuwait is studying opportunities to lay new pipelines to move Kuwaiti crude through Saudi Arabia and the UAE, Al-Abdul Jalil said. He added that Kuwait will take part in regional pipeline projects with the two countries, without naming a route, a cost, or a start date.
• Where the oil goes: The bulk of consumers of Kuwaiti crude are in Asia and East Asia, according to the executive, who said the company is working to keep deliveries flowing to customers worldwide. Asian buyers are reached almost entirely through the Hormuz corridor he identified as the choke point.
• Shipping costs: Geopolitical developments have multiplied oil tanker charter rates by 10 to 12 times, Al-Abdul Jalil said. The chartering cost of a tanker carrying 2 million barrels now reaches 30% of the value of the cargo itself, a level that reshapes the economics of every shipment.
• Market behavior: The shortage of available tankers combined with the surge in rates has pushed many to reconsider their decision before chartering, the executive said. He did not say whether Kuwait Oil Company itself has delayed or cancelled any cargoes as a result.

Between the lines:

The executive’s own numbers separate two stories. Production is intact and facilities are running, so the risk he describes is logistical rather than geological. With most buyers in Asia, charter rates up 10 to 12 times and freight at 30% of cargo value, the pipeline talks with Riyadh and Abu Dhabi read as an attempt to price Hormuz out of the equation rather than wait it out.

What’s next

Watch for a named route, cost or partner in the Kuwait-Saudi-UAE pipeline discussions, an updated production figure from Kuwait Oil Company, and whether tanker charter rates ease from the 10-to-12-fold increase cited.

The post Kuwait Studies Pipeline Routes With Saudi, UAE to Bypass Hormuz appeared first on Ontime+.

Microsoft will spend more than $10 billion on cloud and artificial intelligence infrastructure in the UAE, Saudi Arabia, Qatar and Kuwait through 2030, a senior executive said Wednesday. Brad Smith, the company’s vice chair and president, told Reuters the plan reflects continued infrastructure build-out and a wider expansion of operations across the region. He described the spending plan as ambitious.

Details:

• The figure: Smith told Reuters the commitment exceeds $10 billion across four Gulf markets through 2030, covering cloud infrastructure and artificial intelligence. He said he could not break the sum down by country or by project, citing security considerations attached to some of that information.
• The war test: Smith said Microsoft kept every investment it had planned before the war with Iran broke out, and added to them rather than trimming. The company has placed growing weight on what it calls digital resilience in the region, given the risks now facing digital infrastructure and data centers.
• Infrastructure hit: Security risks from the war reached data centers belonging to major companies, according to Reuters, including cloud computing facilities operated by Amazon in Bahrain and the UAE. The report did not detail the extent of damage at those sites.
• Support to partners: Smith said Microsoft backed its local partners during the conflict, including by running digital resilience assessments. He said the company is now working with Gulf governments on readiness, data protection and the defense of critical infrastructure.
• Subsea networks: Beyond the headline figure, Microsoft plans to invest more than $400 million in subsea telecommunications networks and terrestrial infrastructure across the Middle East by 2030, Smith said. No individual route or landing point was named.
• The G42 stake: Microsoft is deepening ties with local AI firms, including Abu Dhabi’s G42, where it invested $1.5 billion in 2024 for a minority stake. The deal gave Microsoft a board seat, currently held by Smith himself.
• Saudi and Qatar: Smith said Microsoft is working with Saudi Arabia’s Humain and Qatar’s Qai in “selected priority areas” for each. He specified that the company has no plans for capital investments in either firm, marking a different model from the G42 arrangement.
• The Gulf bet: Gulf states are pouring billions into artificial intelligence to become global technology hubs and diversify away from oil and gas, drawing on cheap land and abundant power. The constraint is access to advanced chips, which remains difficult.

Between the lines:

The structure of the commitments is revealing. Microsoft took an equity stake and a board seat in Abu Dhabi, but is offering Saudi Arabia and Qatar partnership without capital. That gradation, alongside the refusal to publish country-level figures on security grounds, suggests the Gulf AI build-out is now being treated as a strategic exposure rather than a straightforward commercial expansion.

What’s next

Watch whether Microsoft discloses country-level allocations, how the $400 million subsea program is routed, and whether advanced chip export approvals loosen for Gulf buyers before construction milestones fall due.

The post Microsoft to invest over $10 billion in Gulf tech through 2030 appeared first on Ontime+.

Gulf capitals are openly calling for a reset with Tehran, with Qatar pressing for a regional security framework that includes Iran and the UAE urging a new mindset in Arab-Iranian talks. Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani described the US-Israeli war launched in February as a wake-up call, according to the Financial Times.

Details:

• Qatar’s position: Sheikh Mohammed said Gulf states must act responsibly as a regional bloc and secure good relations with Iran, telling an event on the sidelines of the UN General Assembly that regional partners share the approach. Without a framework binding Gulf states and Iran, and guaranteeing none threatens the other, he warned the region faces greater risk.
• On Iran’s conduct: Asked whether Iran is a source of the region’s problems, the Qatari prime minister said its behaviour during the conflict showed it was not acting as a peacemaker, according to the Financial Times, while stressing that Tehran remains a neighbour of the Gulf states and will not stop being one.
• The UAE line: Anwar Gargash, diplomatic adviser to the UAE president, backed Arab dialogue with Tehran and said talks between Iran and Washington are making no real progress. He argued negotiations must also run at an Iranian-Arab level, and said geography leaves the Gulf no option but engagement.
• The numbers: The UAE absorbed the heaviest share of Iranian strikes on Arab neighbours in the war’s first months, hit by close to 3,000 missiles and drones, the Financial Times reported. Abu Dhabi took the toughest line among Gulf powers and answered with dozens of its own air raids on Iran.
• The de-escalation: The UAE has since worked to cool tensions to protect its standing as a regional hub for finance, trade and tourism. Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan met Iranian President Masoud Pezeshkian this month on the sidelines of the BRICS summit in India.
• The Saudi track: Diplomats and analysts said Riyadh has also discussed a non-aggression pact between Middle Eastern states and Iran since the war began, as part of talks with allies on managing regional tensions once the conflict ends.
• The Yemen front: Saudi Arabia faces a fresh crisis after Iran-backed Houthi rebels reignited their decade-old conflict with the kingdom in recent weeks, launching near-daily barrages of missiles and drones. President Donald Trump has so far resisted Crown Prince Mohammed bin Salman’s calls for US forces to join strikes on the Houthis.
• The leverage: Tehran is weakened but still a threat, having shown it can strike across the region and paralyse shipping through the Strait of Hormuz, the artery for Gulf exports and imports. That capability underpins the Gulf argument for a negotiated framework.
• The analyst view: Sanam Vakil of Chatham House said Gulf leaders now see their external guarantor as less reliable and must manage their own security without a dependable American pillar. She called it an urgent necessity and an opportunity, arguing a weakened Iran lets regional states take ownership of their security.
• Trump’s options: Trump told Fox News over the weekend he is “probably” open to meeting the Iranian president. The network reported he is at a decision point, weighing options ranging from destroying Iran, to leaving it to rot economically, to striking a deal.

Background:

Gulf states had urged Washington against launching the war. The US and Israel attacked Iran in February, and the United States is now deeply entangled in the conflict, leaving Gulf capitals to manage a post-war relationship with a neighbour they cannot relocate.

Between the lines:

The Emirati shift is the sharpest tell. The state that fired back hardest, after absorbing nearly 3,000 projectiles, is now the one arguing geography forces engagement and sending its crown prince to meet Pezeshkian. Read alongside Riyadh’s non-aggression pact talks and Trump’s refusal to strike the Houthis, the Gulf is pricing in an American guarantee it no longer treats as automatic.

What’s next

Arab leaders are expected to raise the crisis with Trump on the sidelines of the UN summit in New York this week. Pezeshkian and Foreign Minister Abbas Araghchi are also due to attend.

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The latest:

U.S. forces struck multiple Iranian tankers near Kharg Island and Jask on Tuesday, hours after Iran fired at least one ballistic missile at a Navy warship, a U.S. official told the Associated Press and Fox News. No American ship was hit. Iran’s Revolutionary Guard responded by warning tanker crews in Kuwaiti and Bahraini ports to abandon their vessels immediately.

Details:

• The strikes: U.S. Central Command struck near Kharg Island and Jask, a U.S. official told Fox News, saying operations were ongoing and that the targets included Iranian crude tankers American forces sought to sink or disable. The official tied the tankers to the IRGC.
• The stated aim: The official called the strikes part of a wider effort to squeeze an Iranian economy heavily dependent on crude exports. Saturday’s strikes on three tankers came with a U.S. warning it would, if necessary, destroy Iran’s limited and exposed oil fleet.
• The undisclosed wave: Iran attacked U.S. Navy ships Monday in an incident the U.S. military has yet to acknowledge, according to U.S. officials, following weekend missile fire at an aircraft carrier and a guided-missile destroyer. Central Command did not respond to a request for comment.
• Iran’s threat: The IRGC Navy warned that all oil tanker crews in the Kuwait and Bahrain dock areas must leave their vessels, at anchorage or at the docks, as they “will be targeted.” The statement, carried by Iranian state television, accused both countries of assisting the attacks.
• Escalation warning: Ali Abdollahi, chief of staff of Iran’s armed forces, said any hostile action against ships would also prompt Iranian attacks on U.S. military bases across the region, according to a statement shared on X by the Islamic Republic News Agency.
• On the ground: Explosions were heard around Kharg Island, Reuters reported citing Iran’s Mehr News Agency, and in Jask, citing Fars. Iranian state media initially said the origin of the blasts and any damage were unknown. A ballistic missile was also reportedly launched from Jask.
• The exposure: More than 20 Iranian tankers were near Kharg Island earlier Tuesday, TankerTrackers’ Sam Madani told Fox News. The U.S. has 19 warships supporting operations in the Middle East, according to a Navy official.
• The capability question: Iranian officials have claimed they are using new missiles with advanced features against American warships, according to Iranian state media. Weapons analysts say such missiles could carry electro-optical seekers, which maneuver toward a moving target using imagery.
• The technology: Iran last year unveiled a medium-range ballistic missile known as the Qassem Bassir that uses seeker technology, said John Caves of the Wisconsin Project on Nuclear Arms Control, who added that other Iranian missiles, such as the Khalij Fars, also have it.
• Outside help suspected: U.S. officials said Iran would still need the approximate location of American warships when its attacks began, raising concerns China or Russia could be helping Tehran track them. Retired Vice Adm. John Miller, a former regional naval commander, said Iran lacks the radar capacity to find a ship in the Arabian Sea.

Background:

The strikes follow more than six months of war between Washington and Tehran. A U.S. blockade of Iranian ports and sanctions are weighing on the Iranian economy, and after the weekend attempt on an aircraft carrier, the U.S. hit three Iranian tankers it said were funding Iran’s military and proxy groups.

Between the lines:

Two facts sit uneasily together: Iran no longer has the radar reach to locate ships at sea, per Miller, yet it has fired at three separate U.S. vessels in days. That gap is why U.S. officials are looking at Chinese or Russian tracking assistance rather than at Iranian sensors alone. Tehran’s threat to tankers in Kuwait and Bahrain widens the target set from warships to Gulf commercial shipping.

What’s next

Watch whether Iran declares the exclusion zone it said it planned near the Strait of Hormuz, whether Central Command acknowledges Monday’s attempted attack, and whether any tanker in Kuwaiti or Bahraini waters is actually struck.

The post U.S. strikes Iranian tankers after second missile attack on warships appeared first on Ontime+.

The latest:

The war with Iran is pushing Gulf governments toward a more diversified security architecture, built on stronger national forces and layered partnerships rather than a single outside guarantor. Officials across the region say Washington remains their most important external partner, but no longer a sufficient one. Saudi Arabia has moved toward a trilateral defense structure with Türkiye and Pakistan.

Details:

• Qatar’s position: A Qatari Foreign Ministry spokesperson said a strategic alliance with the United States is good for Gulf countries but not enough, arguing that greater self-sufficiency in security is the only sustainable path. Gulf states need partners and allies but “cannot depend on them alone for our security.”
• The trigger: Gulf governments have watched missiles and drones cross borders, shipping routes come under pressure, and confrontation with Iran expose the vulnerability of states that rely on outside powers for their ultimate security guarantees. That experience is driving the reassessment now under way.
• The UAE calculation: Presidential adviser Anwar Gargash said rebuilding trust with Iran may take decades, describing Iran as a central issue for the UAE and other Gulf states. His remarks point to the scale of political damage and the difficulty of quickly restoring the pragmatic engagement that once marked parts of Gulf-Iran ties.
• Iran’s warning: Iranian Foreign Ministry spokesman Ismail Baqaei said any foreign military presence or participation in operations in the Gulf or the Strait of Hormuz would amount to direct support for those responsible for aggression against Iran, and would carry serious consequences. He was responding to reports that South Korea could send non-combat equipment.
• The dilemma: Gulf states need external military partnerships to protect critical infrastructure, shipping and energy exports. But deeper involvement by foreign powers also exposes them to Iranian pressure or retaliation, a tension now feeding interest in arrangements beyond the traditional Gulf-US framework.
• The Mecca pact: Saudi Arabia, Türkiye and Pakistan have moved toward a trilateral security structure through the Mecca Joint Defence Agreement, which treats an attack on one member as an attack on all three. The precise military commitments of the arrangement remain unclear.
• What each brings: Türkiye contributes one of NATO’s largest militaries and an expanding defense industry. Pakistan adds a large military establishment and nuclear deterrence. Saudi Arabia brings financial power, strategic geography and influence across the Arab and Muslim worlds.
• Wider consultations: Earlier talks involving Egypt, Pakistan, Saudi Arabia and Türkiye pointed toward broader interest in coordinating regional interests independently of Washington, suggesting a system defined less by fixed blocs than by overlapping alliances.
• Different routes: For Saudi Arabia, the approach means keeping the Washington relationship while deepening ties with Ankara and Islamabad. For the UAE, it means combining military capability, diplomacy and economic resilience. Qatar’s self-sufficiency argument reflects the same calculation from another direction.

Between the lines:

The pattern described here is not a break with the United States. Qatar’s spokesperson framed the alliance as good but insufficient, and the Mecca pact adds a layer rather than a replacement. A more accurate reading is a post-monopoly order: Washington stays indispensable, but Gulf states want the capacity to act without assuming American intervention, ensuring no single partner becomes irreplaceable.

What’s next

Watch whether the Mecca Joint Defence Agreement’s military commitments are spelled out, whether South Korea proceeds with sending equipment after Iran’s warning, and whether the Egypt-Pakistan-Saudi-Türkiye consultations produce a formal framework.

The post The Gulf redraws its security lines: Self-defense and alliances beyond Washington appeared first on Ontime+.

The latest

Kuwait and Qatar are sending more crude through the Strait of Hormuz, restoring shipments to about 70% of the combined 2 million barrels a day they exported before the Iran war. Their return has added to a broader recovery in Gulf oil flows through the strategic waterway, despite the risk of Iranian attacks and the steep cost of securing tankers willing to make the crossing.

Details

• Flow recovery: About 7 million to 8 million barrels of oil a day are now exiting Hormuz, traders said, up from roughly 4 million in mid-July and equal to about three-quarters of pre-war levels. Vortexa separately put the seven-day average near 10 million barrels a day on Monday.
• Regional exporters: The United Arab Emirates was the first Gulf producer to move large volumes through Hormuz using ship-to-ship transfers in the Gulf of Oman. Saudi Arabia later joined after Houthi attacks on tankers in the Red Sea forced it to rely more heavily on the strait.
• Kuwaiti fleet: Kuwait began shuttling cargoes around June and has mainly relied on its own fleet of 11 supertankers. Most of those vessels have transmitted no satellite signals for more than two months, indicating their transponders were switched off or the ships had gone dark.
• Additional sales: The restored flows have allowed Kuwait to offer cargoes on the spot market alongside volumes committed to long-term customers in East Asia. A Kuwait Petroleum Corp. supertanker was struck while crossing the chokepoint earlier in August, Kuwait said in representations to the UN shipping watchdog.
• Qatari cargoes: Commercial tankers have generally carried Qatar’s oil, while TotalEnergies said it was among the biggest carriers of Qatari barrels. QatarEnergy this week offered crude for sale through ship-to-ship transfers outside Hormuz in the Gulf of Oman after increasing shuttle volumes since around June.
• Market impact: The increased shipments come as Washington and Tehran remain deadlocked over the Iran war, with control of Hormuz the central point of contention. Brent crude is trading near $87 a barrel, down from more than $120 in late April.
• Producer responses: Kuwait Petroleum Corp. and QatarEnergy did not respond to requests for comment, while several calls to Kuwait’s oil ministry went unanswered. Traders discussing the export levels requested anonymity because they were not authorized to speak publicly.

Background

The shuttle trade emerged because few vessels were prepared to accept the risks of transiting Hormuz. Gulf producers consequently used their own fleets or hired tankers willing to cross at exceptionally high rates, before transferring the cargoes to other ships in the Gulf of Oman for onward delivery.

What’s next

The next seven-day flow reading will show whether Hormuz shipments remain near 10 million barrels a day and whether Kuwait and Qatar move beyond 70% of their pre-war exports.

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Saudi fighter jets joined US aircraft over Iraq on Wednesday in a joint operation against Iranian-backed militias, the report said, after more than 30 drone attacks targeted Saudi oil infrastructure over 72 hours. Crown Prince Mohammed bin Salman ordered the action and publicly described it as self-defence permitted under international law. The operation marked Riyadh’s first explicit shift from defence to offence, while Gulf Cooperation Council members pursued separate responses despite attacks attributed to Iran and its proxies.

Details

Saudi shift: Riyadh had generally avoided escalation, even floating a Gulf-Iran non-aggression pact in May. The report said missiles and drones struck Ras Tanura refinery, Shaybah oilfield and Prince Sultan airbase. On Thursday, Saudi Arabia announced a Red Sea maritime coalition after hosting representatives from 43 countries and the European Union.

UAE dialogue: The report said the UAE faced almost 3,000 Iranian drones and missiles in the first two months and initially retaliated while aligned with Washington and Israel. Abu Dhabi later opened direct contacts with Tehran. The government denied reports that billions in Iranian oil revenue were unfrozen, while flights and dhow trade resumed.

Mediator roles: Oman skipped the Saudi maritime meeting to protect its mediator role between Iran and the United States. Oman and Qatar have hosted ceasefire channels while accommodating US military assets. Qatar also shares the South Pars gasfield with Iran, requiring workable relations to safeguard its main income source.

Contested retaliation: The Wall Street Journal reported that Kuwait and Bahrain secretly sent jets to strike Iranian sites, with UAE intelligence and defensive air cover. Kuwait’s ambassador in Washington denied his country attacked Iran. Bahrain hosts the US Fifth Fleet; Kuwait balances a US defence alliance with a large Shia minority.

Competing strategies: A senior European diplomat called the conflict a test exposing deep Gulf divisions. Andreas Krieg of King’s College London said UAE policy reflected competing preferences: President Mohamed bin Zayed favoured coercion and deterrence, while his brother Sheikh Tahnoon bin Zayed promoted engagement and financial ties with Iran.

Background

Saudi-Iranian rivalry deepened after Iran’s 1979 revolution, ending their earlier role as US-aligned “twin pillars” of Gulf security. Competition later ran through the Iran-Iraq War and Yemen, where Riyadh backed the government against Iran-supported Houthis. The UAE combines opposition to Iranian proxies and close US-Israeli ties with substantial commerce and a dispute over three Gulf islands occupied by Iran since 1971.

What’s next

The first measurable test will be which governments formally join or operationally support the Saudi maritime coalition announced Thursday. Participation by the UAE or Oman, alongside whether attacks on the UAE remain paused while other Gulf states are targeted, will indicate the durability of military coordination and Abu Dhabi’s de-escalation with Tehran.

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The war with Iran is testing the security formula that has bound Kuwait and the United States since the emirate’s liberation in 1991. The Wall Street Journal reported that Washington is considering a possible reduction in its military presence after US installations made Kuwait a repeated target for Iranian missiles and drones, while Kuwaiti officials still see an American commitment as an essential guarantee. US air defences have intercepted most attacks, but strikes have hit power, desalination, airport and port facilities — exposing the limits of a security architecture built for conventional invasion, not a war that reaches into energy networks, sea lanes and civilian services.

Details

• US footprint: Kuwait has hosted as many as 13,500 US personnel in recent years at Camp Arifjan, Ali Al Salem Air Base and other facilities, serving as a major logistics hub for the US military.
• Risk reduction: US officials told the Journal that the Pentagon has cut its presence in Kuwait to reduce exposure after Iranian attacks on American bases.
• Deadly strike: An attack in March killed six US service members, one of the war’s deadliest strikes on American forces, according to the report.
• Civilian targets: Iranian attacks have targeted power and desalination plants, Kuwait International Airport, a Gulf port and energy-related facilities.
• Water vulnerability: More than 90% of Kuwait’s drinking water comes from desalination, much of it integrated with power generation; a new strike this month seriously damaged one such facility, the report said.
• Export disruption: The closure of Hormuz halted Kuwaiti exports of almost 2 million barrels a day for months, cutting off the country’s main source of income and removing about 2% of global daily supply.
• Kuwait’s response: There is no indication Kuwait plans to abandon the US security partnership, but it may seek more air-defence systems and weapons from Washington and other suppliers.
• Broader ties: Kuwait recently signed a new defence pact with Pakistan, pointing to an effort to broaden its security network without replacing the United States.
• Unclear role: Kuwait denied that its territory had been used for attacks on Iran after Tehran accused the airport of serving as a US staging site; it remains unclear whether US forces were using it in that way.

Between the lines

The paradox is that the US presence is neither a luxury Kuwait can easily dispense with nor a complete shield it can rely on. The partnership was designed primarily to deter a ground invasion like Iraq’s in 1990. The present threat is different: precision missiles, drones and exposed civilian systems. A smaller US footprint could reduce Kuwait’s value as a military target in Tehran’s calculations, but it could also raise a more difficult question in Kuwait City: how durable is the American guarantee when the country needs it most?

What to watch

The relationship’s direction will depend on what the Pentagon decides about its permanent presence and on Kuwait’s ability to protect power, water and port infrastructure from sustained attacks. Any new interceptor systems will also test whether the partnership can shift from defending large bases to building a distributed shield that protects the state itself, not American forces alone.

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Blackstone plans to open an office in Kuwait during the third quarter through the Kuwait Direct Investment Promotion Authority, expanding the Gulf presence of the $1.35 trillion alternative asset manager.

The office will be Blackstone’s second in the six-member Gulf Cooperation Council after Abu Dhabi. The announcement follows an agreement by Blackstone, Brookfield Asset Management and KKR on a $16 billion infrastructure partnership involving Kuwait’s oil export pipelines, described as the largest foreign direct investment in the country’s history.

Blackstone also plans to open more offices across the GCC over the coming year as competition intensifies among global asset managers for mandates from Gulf sovereign wealth funds and institutional investors.

Details:

• Opening schedule: The firm expects to launch its Kuwait office in the third quarter.
• Local authorization: The office will open through the Kuwait Direct Investment Promotion Authority.
• Partnership value: The infrastructure agreement with Brookfield and KKR is worth about $16 billion.
• Local objective: Blackstone aims to support Kuwait’s economic diversification and deepen a partnership spanning nearly four decades.
• Investment competition: Private equity, private credit and infrastructure firms are competing for mandates from the Kuwait Investment Authority and other major institutions.
• International presence: Partners Group and Carlyle have announced plans to open in Kuwait, while BlackRock has appointed a country head and launched a local office.
• Regional commitments: Blackstone has committed about $8 billion in the Middle East, including Saudi data centers and logistics investments in Abu Dhabi.
• Other deals: The firm has backed Dubai-based Property Finder and committed $250 million to a new digital payments platform in Abu Dhabi.
• War risk: Investment firms have continued their Gulf expansion despite tensions linked to the Iran war and repeated threats facing Kuwait.

Between the lines

Global asset managers are no longer content to raise Gulf capital remotely from Dubai or Abu Dhabi. Blackstone’s move into Kuwait reflects a shift toward an on-the-ground presence that offers direct access to deals and investment mandates, suggesting that the appeal of long-term sovereign capital continues to outweigh immediate regional risks.

What to Watch:

Attention will turn to the additional Gulf offices Blackstone plans to open and the execution of the Kuwaiti pipeline partnership. The course of the war and interest rates will also shape the recovery of real estate, infrastructure and private-market deals across the region.

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