Is MBS Out of Money as Saudi Seeks Loan to Cover Costs due to Iran War? | Vantage on Firstpost

September 1, 2026 | The Gulf spent years building an economic fortress on the back of oil wealth, diversification and a promise of stability. But the Iran war is putting that model under unprecedented pressure.

Saudi Arabia is reportedly exploring billions of dollars in fresh borrowing, Qatar is facing a severe LNG shock, while Bahrain and Kuwait are seeing mounting financial stress. Even the UAE, the region’s most diversified economy, has taken a hit.

Growth forecasts for the GCC have been sharply downgraded. The message is clear: the Gulf may have enormous financial reserves, but when war disrupts energy, trade and transport, even the region’s deepest pockets can feel the strain.