Executive Summary
GCC equities dipped in August as lower oil prices and mixed earnings dragged the S&P GCC Composite Index down 2.1%. The GCC countries are caught in the crossfire of the global tariff situation. Under the Trump administration, tariffs have found a new avatar, more as a political weapon than to correct trade imbalances. While the region is not a direct target of the proposed U.S. tariffs, collateral risks loom large through weaker oil demand, potential industrial dumping, and tighter financial conditions due to the dollar peg. At the same time, opportunities may emerge from trade diversion and supply-chain realignment, positioning the GCC as a neutral hub for global investment flows. For the GCC, the challenge is not to win a war it isn’t fighting, but to remain resilient on a battlefield shaken by the actions of others.
