Arab Business Elites Criticise Trump's Attack, Investment in the US Threatened
Jakarta, CNBC Indonesia - The rising tensions in the Gulf region could shake the economic ties that have grown closer between the energy-rich states of the Middle East and the United States. Trillions of dollars in investments previously pledged by Gulf states to the US are now at risk amid the conflict involving Iran and the United States.
Citing The Wall Street Journal, last year the Gulf’s wealthiest nations such as the United Arab Emirates, Saudi Arabia, and Qatar committed to pouring large investments into the United States. Total investment commitments from these three countries exceeded US$3 trillion. This move was designed to strengthen ties with then-US President Donald Trump, and to bolster economic cooperation between the two regions.
However, the situation changed drastically after the conflict erupted. Iran retaliated against US strikes by launching missiles and drones at Arab states in the Gulf. This escalation raised concerns that prolonged tensions could disrupt economic stability and the investment relationship between the two sides.
A number of Gulf business elite began speaking out openly. One came from Dubai businessman Khalaf Al Habtoor, who questioned Washington’s decision to strike Iran.
In a post on X on Thursday, he wrote, ‘Who gave you the authority to drag our region into war?’ He also said the move puts Gulf states ‘in the heart of danger they did not choose.’
Khalaf Al Habtoor is a billionaire who leads the Al Habtoor Group conglomerate. He founded the company in 1970 from a small engineering firm that grew into a large conglomerate with businesses including luxury hotels, car dealerships, and publishing interests. Al Habtoor’s statements are relatively rare since Emirati elites typically exercise caution when commenting publicly on geopolitics. An Al Habtoor spokesperson did not respond to requests for comment regarding the statement.
So far, the UAE, Saudi Arabia, and Qatar have directed most of their criticism at Iran. They protested the attacks on airports and ports in their regions, which were deemed to violate sovereignty and threaten civilian safety. However, before the US carried out air strikes on Iran, Gulf governments already expressed concern that such steps could trigger a broader regional conflict and draw them into it.
The White House defended the move. A spokesman said, ‘State-sponsored Iranian terrorism harms not only America and American citizens but also our allies, including other Gulf states.’ He added that the operation aimed to protect regional stability and ensure smooth trade in the area.
Economic ties between the US and Gulf states had been expanding rapidly since Trump returned to the White House in 2025. His first major overseas visit was to the three states in the spring of that year. In that visit, various investment commitments were announced alongside lavish receptions marked by red carpets and fine dining.
Since then, a range of financial collaborations between the two sides has continued to grow. Among them were plans to build a Disneyland theme park in Abu Dhabi and the donation of a jumbo aircraft from Qatar. Several investment deals were discussed at the US-Saudi-Arabia investment forum held in Washington DC in November, where Trump praised the strategic partnership with Riyadh.
At that forum, Trump even appeared on stage with Crown Prince Mohammed bin Salman of Saudi Arabia. Major firms such as Blackstone and Cisco Systems also pledged to invest in developing data centre infrastructure in the Gulf.
The Trump family business and a number of its allies have also been active in making deals in the region, including fundraising for crypto projects and private equity. Trump-branded real estate projects such as residential towers and luxury golf courses were also planned to be built in cities like Doha in Qatar, Jeddah and Riyadh in Saudi Arabia, and Dubai in the UAE.
Moreover, sovereign wealth funds from Gulf states have been involved in a number of major global acquisitions. One was the $55 billion acquisition of the video game company Electronic Arts, backed by Saudi Arabia. Meanwhile Abu Dhabi’s investment funds also acquired advertising company Clear Channel Outdoor Holdings. The funds from the three countries also supported the deal to acquire Warner Bros. Discovery by Paramount Skydance late last year.
Nevertheless, the future of these investment flows now hinges on how the conflict develops. Rachel Ziemba, additional senior research fellow at the Washington-based think tank Centre for a New American Security, said the war raises new uncertainty.
‘This conflict raises new questions about the ability and willingness of Gulf states to continue investing in the United States,’ she said.
If the conflict persists for a long time, Ziemba noted this could shake the Gulf countries’ finances. Revenues from oil and gas could fall, while defence spending is likely to rise, reducing the funds available for overseas investment.
Some economists also began lowering regional growth projections. Capital Economics, in a note to clients, said they cut their Gulf GDP growth forecast by one percentage point, assuming the conflict lasts only.