Investor confidence in Gulf remains strong despite war, says World Economic Forum's regional chief

Investor confidence in the Gulf region remains robust despite ongoing effects from the Iran war, with efforts to diversify economies aiding their resilience, according to the World Economic Forum's regional chief in the Middle East and North Africa, Kelsey Goodman. Goodman stated that the region's economic fundamentals remain solid, even amidst geopolitical uncertainty.

The International Monetary Fund recently downgraded its 2026 growth forecasts for the Gulf economies, citing the impact of the war and the closure of the Strait of Hormuz. Goodman highlighted the importance of dialogue and cooperation for the region's recovery, emphasizing that diversification of economies has been key to their resilience.

Successful diversification has allowed companies to remain resilient during crises, she added. The World Economic Forum organized foresight simulations at their Annual Meeting of Global Future Leaders in Dubai, which concluded recently, to explore responses to geopolitical and technological crises. Goodman emphasized that dialogue and cooperation are essential in times of complexity, not just in easy times.

Despite the positive mood at the meeting, the World Economic Forum official pointed out that the region's economic diversification into AI could yield significant benefits, potentially unlocking up to $1 trillion by 2030. However, she warned that regional uncertainty might pose significant barriers to realizing these goals. Goodman stressed that achieving this potential would require extensive co-operation across all sectors, including long-term planning from governments, robust regulation, energy infrastructure, and business applications for new technologies.

The war's impact on the travel and tourism sector could also affect the labor market, given the high number of migrant workers in the UAE, with around 8.7 million migrant workers.