Iran War impact on Gulf economies: BMI says watch energy and tourism

Cedric Chehab, Chief Economist at BMI, says economies with higher energy intensity and weaker macro fundamentals are most vulnerable to the Iran war. Within the Gulf, major energy producers face exposure through infrastructure risks, and tourism-linked economies such as Dubai and Abu Dhabi could see sharper impacts. He adds that multinational firms may begin reassessing regional strategies, potentially diversifying operations to manage rising security risks.