Geopolitical Impact of the Strait of Hormuz: Arab Companies Face Economic Performance Gap

Tensions in the Strait of Hormuz are creating an economic divide in the Gulf region, where the energy sector is reaping huge profits while the property and banking industries experience liquidity pressure.

Oleh Admin Portal 12 Jul 2026 2 menit baca 💬 0 komentar

Sumber: static.rctiplus.id

The escalation of the conflict between the United States-Israel and Iran is beginning to have a significant impact on the business landscape in the Arabian Gulf region. Entering the release of the Q2-2026 financial reports, a number of giant corporations in Saudi Arabia, the United Arab Emirates, Oman, and Qatar are showing sharp performance disparities due to peaking geopolitical volatility.

Geography has become the main determining factor for the economic resilience of countries in the region. Dependence on the Strait of Hormuz as a main logistics route has split economic fortunes into two poles. Saudi Arabia and Oman are reportedly able to maintain performance stability as they have alternative access outside the blockade route, unlike the United Arab Emirates (UAE), Qatar, and Kuwait, which have to deal with logistical contractions due to the disruption of tanker operations.

Behind these tensions, the energy sector recorded a significant surge in profits. The rise in Brent crude oil prices to an average of USD 114 per barrel successfully compensated for disruptions in distribution volumes. In addition, changes in consumer behavior, with people spending more time at home, drove growth in the digital services sector, such as food delivery apps, which saw their stock rise by up to 60 percent in three months.

Conversely, the property and banking sectors in the region are facing a difficult period. A decline in expatriate inflows and slowing international tourism have had a direct impact on residential sales in Dubai and Abu Dhabi. Major real estate companies like Emaar and Aldar have even had to postpone dividend distributions to secure liquidity.

The banking sector has also felt the negative impact, with declining profitability due to weakening international trade transactions and credit card usage for overseas travel. Nevertheless, market analysts remain confident that corporate fundamentals in the Middle East are still strong enough to weather long-term shocks, thanks to the robust capital reserves of each company.