Mubasher - Mohamed Shaker: Global economic challenges continue to increasingly impact Gulf markets, as global trade crises coincide with sharp fluctuations in oil and financial markets.

Since the start of the US-China trade war in 2018, which later included other countries, Gulf markets have come under increasing pressure from these economic tensions.

This war resulted in the United States imposing tariffs on a range of essential goods, causing widespread damage to global economies .

This trade conflict coincides with a slowdown in global economic growth, threatening to reduce demand for oil, the Gulf states' primary source of revenue.

With the recent decline in oil prices, concerns have emerged about the impact of this decline on Gulf economies, which rely heavily on oil revenues.

Moreover, increased tariffs may contribute to higher costs for basic goods, leading to a return to rising inflation, which increases pressure on consumers .

At a time when global financial markets are experiencing a state of tension and extreme volatility, the Gulf countries find themselves under increasing economic pressure due to the repercussions of this trade war. Customs duties imposed on goods from major economies such as China and the European Union have led to fluctuations in commodity prices, particularly oil, reflecting growing concerns about the stability of Gulf markets.

This raises questions about the impact of these developments on global demand for oil, which could lead to a sharp decline in oil revenues.

In this context, concerns are growing about the ability of Gulf economies to withstand these fluctuations, especially in light of high levels of inflation and rising interest rates .

In this regard, Raed Diab, Vice President of Research at Kamco Invest, stated that regional markets were significantly impacted by the decline in global markets as a result of the US administration's imposition of tariffs on major economic powers, and the impact of this trade war on global economic growth and inflation rates .

In exclusive statements to "Information Direct," Diab pointed to concerns that slowing economic growth could lead to a decline in demand for oil, which has seen a sharp decline in recent days. This, in turn, has impacted Gulf states' oil revenues and put pressure on their budgets.

He added that there is concern about rising prices as a result of customs duties, which could cause inflation to rise again, impact economic activity, and burden consumers with the consequences of these increases .

Diab explained that the impact of this global crisis on regional markets may be temporary, given the limited volume of Gulf exports to the United States. He noted that the UAE and Bahrain export aluminum and iron to the United States, which may have a minor impact on their revenues .

Diab addressed the fact that supply chains are a source of concern for Gulf economies, expecting that the impact of customs duties on these countries' economies will be limited due to their strong economic fundamentals. However, he added that concerns lie in the return of inflation and the continued rise in interest rates, as well as the dependence of many of these countries on oil revenues to finance their budgets, which could impact government spending to some extent .