At stake is Saudi Arabia’s massive “Vision 2030” plan, with trillions of dollars earmarked for healthcare, education, tourism and entertainment, to reduce its dependence on oil. The future of data centers is also uncertain, after several were hit in the Emirates and Bahrain. Tourism has been hit hardest
For years, the Gulf monarchies have presented themselves as an oasis of calm, a reliable and cosmopolitan haven, untouched by the chronic geopolitical instability of the Middle East. “Bring us your rich, your tourists, your sovereign wealth funds, your luxury brands, your billions of unclear origin,” the sheikhs and emirs seemed to say, turning the famous message of the Statue of Liberty upside down.
But it only took a few days for this expensive project for a post-oil future to turn into a nightmare, under the blows of a conflict that they have feared and tried to avoid for decades. In response to massive attacks by the US and Israel, Iran launched over a thousand missiles and drones against Saudi Arabia, the Emirates, Qatar, Bahrain, Kuwait and Oman.
At least seven civilians were killed and hundreds were injured. Infrastructure, buildings and data centers were hit, transport lines were disrupted, banking services and online commerce were partially paralyzed. Airports were closed, thousands of flights were canceled and tens of thousands of tourists and foreign residents were evacuated in terror. The view of the sky over Dubai’s skyscrapers, illuminated by Iranian missiles and the smoke of explosions, best describes the unfolding cataclysm.
The crisis has hit the Gulf countries’ reputation hard. “It destroys the perception of security and stability that these economies have built, and if it continues, in addition to the short-term damage, it could threaten investment and diversification efforts,” says analyst Jason Tuvey of Capital Economics.
At stake is Saudi Arabia’s massive “Vision 2030” plan, with trillions of dollars earmarked for healthcare, education, tourism and entertainment, to reduce its dependence on oil. The future of data centers is also uncertain, after several were hit in the Emirates and Bahrain. Tourism has been hit hardest: with 100 million visitors in 2025, it accounts for 12% of the Emirates’ economy, while in Saudi Arabia, tourism revenues in 2024 exceeded petrochemical exports for the first time, reaching $41 billion. According to Tourism Economics, the conflict could lead to a decrease in international visitors to the Middle East this year of 11% to 27%, with financial losses between $34 billion and $56 billion.
Meanwhile, the blockade of the Strait of Hormuz has hampered oil exports, while energy infrastructure has suffered severe damage. Qatar was forced to shut down liquefied gas production after several refineries were hit.
Since the 1979 Revolution, Iran has been seen by the Gulf monarchies as a destabilizing factor. For this reason, they have maintained close ties with the United States as a guarantee of protection.
But in recent years, Oman, Qatar, and even the Emirates and Saudi Arabia have attempted a diplomatic rapprochement with Tehran, to avoid conflict. However, the recent attacks have overturned all calculations. Now the Gulf monarchies are faced with a dilemma: join military action against Iran, risking a dangerous escalation, or rely again on diplomacy, which has so far yielded no results. In any case, the future remains uncertain. Even in the event of regime change, no one in the Persian Gulf wants a Middle East dominated by Israel. “When the war is over, new dynamics will emerge in the region,” predicts former Qatari Prime Minister Sheikh Hamad al-Thani. (iL Giornale)