Gulf States Tap Private Deals for $10B in Wartime Borrowing

Gulf states like Abu Dhabi, Qatar, and Kuwait are increasingly turning to private deals to raise funds, avoiding public markets as the Iran conflict delivers an economic blow to the region. These countries have collectively borrowed over $10 billion through private arrangements in recent months, seeking to shore up their finances amid the geopolitical tensions.

The shift away from public borrowing reflects the challenges facing Gulf economies, which are grappling with the fallout from the US-Iran standoff. The conflict has disrupted trade, dampened investor confidence, and strained government budgets already under pressure from lower oil prices. By tapping private lenders, the Gulf states aim to secure financing more discreetly and on more favorable terms.

Qatar, for instance, recently raised $3 billion through a private placement with international banks, while Kuwait raised $8 billion in a similar deal. Abu Dhabi, the capital of the United Arab Emirates, has also been active in the private debt market, securing funds to support its sovereign wealth fund and state-owned enterprises. These private transactions allow the Gulf states to access capital without the scrutiny that comes with public bond sales.