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- Gulf Buys $41B Worth US Arms; US Slaps 12 Arab Nations with Tariffs; Blackstone in Dubai Soon
Gulf Buys $41B Worth US Arms; US Slaps 12 Arab Nations with Tariffs; Blackstone in Dubai Soon
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Saturday, July 25, 2026
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Defence spending is accelerating across the Arab region, with US arms sales to GCC countries reaching $41 billion in the first half of 2026 as demand for air and missile defence systems rises. Meanwhile, new US tariffs have hit 12 Arab nations, with most facing a 12.5% duty on exports, putting pressure on non-oil sectors from manufacturing to textiles. And despite regional uncertainty, global investors continue to expand their Gulf presence, with Blackstone planning a new Dubai office as it targets opportunities across private equity, real estate and technology.
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US Arms Sales To Gulf States Surge Past $41 Billion As Regional Security Fears Intensify
What Is It About
US arms sales to Gulf Cooperation Council (GCC) countries have surged to $41 billion in the first six months of 2026, more than four times the $9 billion recorded during all of 2025, according to AGBI's analysis of US State Department data. The spike has been driven largely by demand for air and missile defence systems, with 12 of the 15 announced deals focused on missile defence and military aviation.
Why It Matters
The surge reflects growing security concerns following the conflict involving the US and Iran, prompting Gulf nations to rapidly strengthen their defence capabilities. Saudi Arabia led the spending with a $9 billion order for 730 Patriot interceptor missiles, while additional deals include precision-guided weapons for Saudi Arabia, the UAE and Qatar. Analysts say governments are moving quickly to secure contracts before potential political changes in Washington.
What’s Next
Analysts expect defence sales to the Gulf to continue rising, with at least $17 billion in additional US-approved deals yet to be publicly announced. However, delivery timelines could stretch for years as manufacturers struggle with limited production capacity and global demand. Competition for missile defence systems from Ukraine and other regions is also expected to accelerate Gulf investment in domestic defence manufacturing.
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Trump Imposes New US Tariffs On 12 Arab Nations As Trade Rules Shift
What Is It About
The US has imposed new tariffs on imports from 60 countries, including 12 Arab nations, with most facing a 12.5% duty on goods exported to the United States. The affected countries include Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain, Egypt, Iraq, Algeria, Libya, Morocco and Oman, while Jordan received a lower 10% tariff. The measures replace temporary tariffs that expired following a US Supreme Court ruling.
Why It Matters
The Trump administration says the tariffs are aimed at countries that have failed to adequately prevent goods produced with forced labour from entering supply chains. While oil, gas and fertilizers are exempt, protecting major Gulf energy exports, non-oil sectors such as Egyptian textiles, Moroccan manufacturing, Bahraini aluminium and Jordanian garments are expected to face higher costs and weaker competitiveness in the US market.
What’s Next
The new tariffs are expected to face legal and political scrutiny as the administration defends its revised trade strategy ahead of the US midterm elections. Businesses across the Middle East and North Africa will closely monitor whether governments negotiate exemptions or strengthen labour enforcement, while exporters in non-energy sectors prepare for the impact of higher duties on shipments to the United States.
$1.35T-AUM Blackstone Plans Dubai Office As Global Investment Giant Expands Gulf Footprint
What Is It About
Blackstone, the world’s largest alternative asset manager, is planning to open an office at the Dubai International Financial Centre (DIFC), according to sources familiar with the matter quoted by Reuters. The move would mark the firm’s return to Dubai after relocating its Gulf base to Abu Dhabi in 2019. Blackstone is expected to maintain its Abu Dhabi presence while expanding its regional operations.
Why It Matters
The planned Dubai office highlights the emirate’s growing role as a global financial hub, attracting asset managers, family offices, hedge funds and wealthy investors. Blackstone, which manages around $1.35 trillion in assets, has been increasing its Gulf investments, including stakes in UAE technology platforms, aviation leasing and potential energy infrastructure opportunities.
What’s Next
Blackstone’s expansion comes as global investors continue to target Gulf markets despite regional uncertainty. The firm is expected to seek new investment opportunities across private equity, real estate, credit and technology. Dubai’s strengthened financial ecosystem, residency reforms and rising investor demand are likely to support further growth from major international asset managers
Smashi Business Exclusive: "We Are Building an International Consumer Retail Business," ADNOC Distribution CSTSO on $1 Billion South Africa Deal
On the Smashi Business Show, Athmane Benzerroug, Chief Strategy, Transformation and Sustainability Officer at ADNOC Distribution, broke down the company's landmark $1 billion acquisition of 100% of Shell Downstream South Africa.
The deal, expected to close in 2027 pending regulatory approval, hands ADNOC Distribution one of South Africa's top three fuel retailers by station count, a 120-year-old brand spanning fuel and convenience retail, lubricants, commercial, and aviation businesses. The impact on scale is immediate: 580 new stations creating a 55% expansion of the network to 1,600 sites globally and a 70% increase in ADNOC Distribution’s convenience stores.
Benzerroug framed the move as a natural extension of ADNOC Distribution's expansion strategy, with the company previously having entered Africa. He pointed to the market's scale, sophistication, and fuel-pricing regulation that shields margins from inflation and currency swings as key draws, alongside strong long-term demand growth.
Financially, the deal is designed to create immediate shareholder value: a 6% boost to earnings per share, 13% EBITDA accretion, and a 15% free cash flow yield from year one. Post-acquisition leverage will sit around 1.2x net debt to EBITDA, with rapid deleveraging expected.
Asked about what's next, Benzerroug kept the focus on disciplined execution, contributing to South Africa’s economic priorities, while continuing to evaluate opportunities that build long-term shareholder value across ADNOC Distribution's growing international footprint.
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