Three of four major Gulf economies may review investments in overseas including US: Report
Several Gulf countries are reviewing their overseas investments and financial commitments as they assess the economic pressure caused by the ongoing US-Israeli war against Iran.
According to a report by The Financial Times, the financial strain on Gulf economies could lead to reconsideration of some international investment pledges and contracts.
A Gulf official cited by The Financial Times that the economic pressure may affect various types of international commitments including to the United States made by Gulf countries.
These could reportedly include investment pledges to foreign governments or companies, sports sponsorship deals, contracts with international businesses, and even the sale of existing holdings.
The official said that three of the four major Gulf economies, Saudi Arabia, the United Arab Emirates, Kuwait and Qatar, had discussed the financial pressure being placed on their budgets and economies. However, the official did not identify which three countries were involved in the discussions.
The official said that some Gulf countries have begun internal reviews of their financial commitments and contractual obligations.
“A number of Gulf countries have begun an internal review to determine whether force majeure clauses can be invoked in current contracts, while also reviewing current and future investment commitments in order to alleviate some of the anticipated economic strain from the current war,” the official was quoted as saying by the Financial Times.
“Especially if the war and related expenses continue at the same pace,” the official added.
The official said the review was being carried out as a precautionary measure because several economic sectors have been affected by the conflict.
An adviser to a Gulf government cited by The Financial Times stated that the possibility of an investment review by wealthy Gulf states has already drawn attention from the White House.
Saudi Arabia, the United Arab Emirates and Qatar manage some of the world’s largest sovereign wealth funds and are among the most active investors globally, the report added.
The adviser said these countries had pledged to invest hundreds of billions of dollars in the United States last year after US President Donald Trump visited the region.
Gulf countries are also major backers of global sporting events and have been investing heavily in domestic projects aimed at diversifying their economies and reducing dependence on oil.
Any decision by these countries to reduce or reconsider investments in the United States or other Western countries could increase pressure on the Trump administration to pursue diplomatic efforts to end the war, the adviser reportedly told FT.
According to the report, the conflict has severely affected shipping traffic through the Strait of Hormuz, a key maritime route through which around one-fifth of the world’s oil and gas passes.
Shipping activity in the area has slowed significantly, and at least 10 tankers have been struck in the Gulf.
The war has also affected energy infrastructure in the region. Qatar, which is the world’s second-largest liquefied natural gas producer, declared force majeure earlier this week after it suspended production following a drone attack on its main LNG plant.
In addition, one of Saudi Arabia’s largest oil refineries has been hit during the conflict.
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Flagrant injustice to underprivileged: Mehbooba on govt action against Shopian school
Srinagar (PTI): PDP president Mehbooba Mufti on Monday said declaring Dar Ul Uloom Jamia Siraj Ul Uloom in Jammu and Kashmir's Shopian an unlawful entity under the UAPA was a "flagrant injustice" to the underprivileged sections of society.
She also alleged that banning such "altruistic institutions" without any solid evidence of anti-national activity "shows a deep seated prejudice and ill intention".
The institution allegedly run by individuals affiliated with a banned organisation has been declared an "unlawful entity" under the Unlawful Activities (Prevention) Act (UAPA).
In a post on X, Mehbooba said, "Every single day the j&k government acts as a mute bystander & a timid enabler of vicious assaults on J&Ks identity & dignity. Declaring Dar Ul Uloom Jamia Siraj Ul Uloom as an unlawful entity under UAPA is a flagrant injustice to the poor underprivileged sections of society".
The former chief minister said the institution served as a "beacon of quality education" for students unable to afford expensive schooling.
"It has produced reputed doctors and professionals who served this nation with dedication. Banning these altruistic institutions without any solid evidence of anti national activity shows a deep seated prejudice & ill intention," she added.
Divisional Commissioner Kashmir Anshul Garg issued a two-page order based on the dossier presented by Senior Superintendent of Police Shopian pointing towards the alleged illegal activities at Darul Uloom Jamia Sirajul Uloom at Imam Sahib in Shopian district in south Kashmir.
According to the order issued by Garg on April 24, there were "credible inputs and evidence on record, to indicate sustained and covert linkages of the institution with Jamaat-e-Islami, which the Government of India banned in 2019.
