Business resilience amid regional uncertainty

75% of respondents report limited or moderate impact, signalling that, for the majority of Gulf businesses, the conflict is a significant operational challenge rather than an existential one. However, around one in five describe significant or transformational disruption.  

Across all geographies, reduced demand and revenue is the most widely cited impact (43%), followed by increased operating costs (40%) and supply chain disruption (39%). The majority of respondents are contending with more than one pressure at the same time, with cost inflation and supply chain strain the most common pairing.

The UAE stands out as the most acutely affected market, with 38% of respondents reporting significant or transformational impact against just 4% in KSA. UAE pressures are broad and immediate, while KSA’s more domestically insulated market feels operational and input pressures before revenue effects. 

Smaller businesses are disproportionately affected: 35% of those with revenues below AED 0.5bn report significant or transformational impact, versus 13% in the AED 1–2bn band. Smaller firms face acute demand and market-access challenges, while larger businesses are more exposed to supply chain disruption and working capital stress. 

UAE businesses are focused on preserving liquidity, with 57% cite cash flow management as their primary near-term priority. KSA businesses are more likely to pursue growth, with 28% naming market share preservation and expansion as their lead objective. 

64% of respondents expect conditions to normalize within 12 months. While smaller businesses are the most optimistic; the largest remain the most cautious, with 30% projecting a one-to-two-year recovery.