Gulf Nations Redirect Investment Playbook Amid Iran War Disruption

Gulf nations are redirecting their investment playbook in response to the Iran war, pouring billions of dollars into infrastructure projects such as energy pipelines and ports. The conflict has highlighted the region's overreliance on the Strait of Hormuz, a chokepoint that accounts for 20 percent of global oil flows.

The Strait has been largely blocked for six months, prompting Gulf energy exporters to seek alternative routes. Saudi ports on the Red Sea and UAE eastern ports are being used, but capacity is limited.

Gulf governments are exploring permanent solutions to bypass the strait, with some looking to external funds to finance ambitious foreign direct investment targets. The costs could exceed hundreds of billions of dollars in the coming years.