Essential Middle East Market Analysis Trends in 2026

Israel reacted with alarm to both the U.S. decision to raise sanctions on Syria and President Trump's meeting with Ahmed al-Sharaa. Prime Minister Netanyahu reportedly asked President Trump not to raise Syria sanctions in advance of Trump's trip to the area. Because the fall of the Assad routine in December 2024, Israel has actually been careful of the previous jihadist now in control in Damascus.

It has actually also deployed troops in southern Syria, occupying an increasing location beyond the demilitarized zone separating the 2 countries. Moving forward, Israel will remain cautious of the Sharaa federal government and will likely continue to apply military pressure on Syria, including a broadened occupation of southern Syria and occasional air campaign.

Israel's openness to the Trump administration's efforts to broker a nonaggression pact in between Israel and Syria stays an open question. Instead, Syria might become a locus of local power competition in between Israel and Turkey as both seek to apply their impact over Syria's trajectory. Because the fall of Assad in December 2024, Saudi Arabia has lobbied hard for the United States to raise Syria sanctions, citing them as a crucial obstacle to the country's restoration.

For MBS, the U.S. decision stood as an important victory emerging from Trump's journey. Moving forward, Saudi Arabia will likely encourage the United States to continue along its course towards normalization with Syria. It may press for the repeal of the Caesar sanctions, which must be carried out by Congress. Riyadh might likewise press the United States to control Israel, should it continue with aggressive military action in Syria.

Essential GCC Market Research Trends in 2026

, with no tip of a shift in policy. Going forward, Netanyahu can be anticipated to continue along the exact same trajectory in Gaza, particularly given that a significant shift in U.S.

ANSR July GCC PRs 50DR+

On the contrary, as the international outcry worldwide ProtestVersus actions in Gaza grows and with an increasing number of U.S. allies moving to declare a Palestinian state, Israel is likely to entrench its position further, bolstered by boosted prospect of continued U.S. support.

Trump's proposal and restated its rejection to stabilize relations with Israel in the lack of substantial progress toward the production of a Palestinian state. The kingdom has also strongly criticized Israel for the lack of appropriate help streaming into Gaza.

ANSR July GCC PRs 50DR+

Its leading role in pressing for a two-state service at the 80th UN General Assembly stands as its most prominent effort in this regard. The kingdom will likely continue its behind-the-scenes lobbying of the United States to pressure Israel to relent on these demands, holding out on any progress toward normalization with Israel in the lack of motion on these problems.

Essential GCC Business Analysis Trends in 2026

Its engagement in the Middle East is shaping the shapes of the emerging regional orderwhether by default or design. Particularly, its decisions on Iran, Syria, and Gaza all discuss core difficulties in the area and hold the possible to move each in a positive instructions. Yet, peril and deepening dispute base on the flip side of each chance.

As worldwide trade patterns straighten, a new investment corridor is taking shape, connecting capital from the Gulf to Latin America. Sovereign wealth funds, conglomerates, and household offices from the Gulf Cooperation Council ("") are investing billions throughout Latin America's energy, agriculture, fintech, and infrastructure sectors. Trade between Mexico and GCC states rose more than 33% in between 2021 and 2022, while non-oil trade with the UAE has almost doubled over the previous years.

3 Business belief reflects this momentum64% of Latin American executives plan to broaden engagement with the Gulf, particularly in agriculture, sustainable energy, and digital services. 4 Highlighting this momentum, Saudi Arabia recently opened its very first Chamber of Commerce workplace in Miami, further indicating the growing links between Gulf capital and the Americas.