Middle East Economic Outlook and Growth Realities

Israel responded with alarm to both the U.S. decision to raise sanctions on Syria and President Trump's meeting with Ahmed al-Sharaa. Prime Minister Netanyahu supposedly asked President Trump not to lift Syria sanctions in advance of Trump's trip to the region. Moreover, given that the fall of the Assad routine in December 2024, Israel has been wary of the former jihadist now in control in Damascus.

It has also released troops in southern Syria, occupying an increasing location beyond the demilitarized zone separating the two countries. Going forward, Israel will remain wary of the Sharaa federal government and will likely continue to apply military pressure on Syria, including a broadened profession of southern Syria and periodic air strikes.

Yet, Israel's openness to the Trump administration's efforts to broker a nonaggression pact in between Israel and Syria stays an open question. Instead, Syria might end up being a locus of local power competition between Israel and Turkey as both seek to apply their impact over Syria's trajectory. Considering that the fall of Assad in December 2024, Saudi Arabia has lobbied hard for the United States to lift Syria sanctions, citing them as an essential obstacle to the country's restoration.

For MBS, the U.S. decision stood as an essential success emerging from Trump's journey. Going forward, Saudi Arabia will likely motivate the United States to continue along its course towards normalization with Syria. It might push for the repeal of the Caesar sanctions, which need to be undertaken by Congress. Riyadh might likewise press the United States to rein in Israel, ought to it continue with aggressive military action in Syria.

Crucial Middle East Business Research Trends for 2026

In spite of expanding domestic and international criticism of Israel's technique, the prime minister has not wavered in his expanding profession of Gaza in the absence of any U.S. pressure. The prime minister appears to bask in U.S. assistance, with no tip of a shift in policy. Moving forward, Netanyahu can be expected to continue along the same trajectory in Gaza, specifically given that a significant shift in U.S.

On the contrary, as the international protest against Israel's actions in Gaza grows and with an increasing variety of U.S. allies relocating to state a Palestinian state, Israel is likely to entrench its position even more, strengthened by the prospect of ongoing U.S. support. The Trump administration announced its choice to reject visas to the Palestinian Authority management ahead of the UN General Assembly, seemingly in reaction to installing calls for declaring a Palestinian state.

Riyadh immediately declined Trump's proposal and restated its rejection to normalize relations with Israel in the lack of considerable development toward the creation of a Palestinian state. The kingdom has actually also highly slammed Israel for the lack of sufficient help streaming into Gaza. Following the August 22 scarcity statement, Saudi Arabia, while not calling out the United States, faulted the Israeli profession as the cause of the "humanitarian disaster" in Gaza.

ANSR July GCC PRs 50DR+

Its leading role in pressing for a two-state solution at the 80th UN General Assembly stands as its most prominent effort in this regard. The kingdom will likely continue its behind-the-scenes lobbying of the United States to push Israel to relent on these demands, holding out on any progress towards normalization with Israel in the lack of motion on these issues.

Long-Term Dubai Economic Growth Patterns in 2026

Its engagement in the Middle East is forming the shapes of the emerging regional orderwhether by default or style. Particularly, its decisions on Iran, Syria, and Gaza all touch on core difficulties in the area and hold the prospective to move each in a favorable direction. Yet, hazard and deepening conflict stand on the other hand of each opportunity.

As international trade patterns realign, a brand-new investment corridor is taking shape, linking capital from the Gulf to Latin America. Sovereign wealth funds, conglomerates, and household workplaces from the Gulf Cooperation Council ("") are investing billions throughout Latin America's energy, agriculture, fintech, and infrastructure sectors. Trade between Mexico and GCC states increased more than 33% in between 2021 and 2022, while non-oil trade with the UAE has nearly doubled over the previous decade.

3 Organization belief reflects this momentum64% of Latin American executives prepare to broaden engagement with the Gulf, especially in farming, renewable resource, and digital services. 4 Underscoring this momentum, Saudi Arabia just recently opened its first Chamber of Commerce workplace in Miami, additional signaling the growing links in between Gulf capital and the Americas.