“A number of Gulf countries have begun an internal review to determine whether force majeure clauses can be invoked in existing contracts, while also reviewing current and future investment commitments to alleviate some of the anticipated economic strain from the war,” a Gulf official told the FT. The FT did not disclose the name or position of the official.
The official told the FT the strain on national budgets could affect a wide range of financial activities, including investment pledges to foreign governments and companies, sports sponsorships, business contracts, and potential sales of existing holdings. The official said three of the four largest Gulf economies — Saudi Arabia, United Arab Emirates, Kuwait and Qatar — have held discussions about the economic pressures resulting from the conflict but declined to specify which countries were involved. The official said the review was aimed at easing economic strain, particularly if the war and related costs continue at the current pace.