Kuwait's economy contracts sharply as war disrupts oil exports and infrastructure

Kuwait has recorded a sharp slowdown in growth, with first‑quarter GDP falling about 5.2% as oil‑related revenues plunge. The value added by the oil sector dropped to roughly 4.37 billion Kuwaiti dinars, while the non‑oil sector saw a modest rise. The decline is linked to near‑constant Iranian attacks on U.S. interests in the region and the blockage of the Strait of Hormuz, which has cut off the country’s oil and trade exports that normally fund 85‑90% of the state budget.

In the United Arab Emirates, Dubai continues to promote its international financial attractiveness despite missile alerts and heightened regional tension. Authorities urge businesses and expatriates to maintain operations, while limited state support leaves banks and firms navigating uncertainty. A U.S. bank that reduced its exposure lost contracts to France’s Natixis, and several banking projects have been frozen as firms weigh recruitment and investment decisions.