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Riyadh Air Defies War Disruption; Qatar Draws Hormuz Red Line; Iran Eyes $300bn Reconstruction Fund
Sunday, May 31, 2026
Happy Sunday everyone!
From aviation expansion and energy security to post-war reconstruction, today’s stories show how Gulf governments are continuing to pursue long-term economic ambitions despite regional turmoil. Saudi Arabia is pushing ahead with Riyadh Air's global rollout, Qatar is resisting permanent transit fees through the Strait of Hormuz, and US negotiators are reportedly discussing a $300 billion investment-led rebuilding plan for Iran. Together, the developments highlight how infrastructure, trade routes and capital are becoming central battlegrounds in the region's next phase of competition and diplomacy.
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Qatar just rejected permanent Hormuz transit fees but said temporary charges are negotiable
What Is It About?
Qatar has rejected any permanent transit fees through the Strait of Hormuz but signalled it could support temporary charges linked to mine-clearing and restoring safe passage. Speaking at the Shangri-La Dialogue in Singapore, Deputy Prime Minister Sheikh Saoud bin Abdulrahman Al Thani said permanent tolls would ultimately raise costs for consumers and should be avoided. However, he added that short-term fees tied to specific operational needs could be negotiated.
Why It Matters?
The comments come as Iran and Oman reportedly discuss a formal toll system for Hormuz after the waterway was disrupted by the Iran war, triggering an energy crisis. The Strait of Hormuz handles a significant share of global oil and gas trade, making any change to transit rules a major concern for energy markets. The United States, Europe and Gulf states including the UAE have opposed permanent fees, warning they could increase costs across global supply chains.
What’s Next?
Investors and policymakers will watch whether negotiations evolve into a formal framework governing future Hormuz transit. Qatar appears to be positioning itself between outright opposition and pragmatic compromise.
Witkoff and Kushner Pitch Tehran Real Estate Projects as Part of Potential $300 Billion Iran Deal
What Is It About?
US negotiators are discussing a framework that could unlock a $300 billion reconstruction programme for Iran as part of a broader agreement to end the conflict, according to The New York Times. The proposal reportedly includes Tehran real estate developments and a sovereign investment fund, ideas previously floated by US envoy Steve Witkoff and Jared Kushner.
Why It Matters?
The concept reportedly emerged after Tehran sought compensation for damage sustained during the conflict, with some Iranian officials estimating losses between $300 billion and $1 trillion. Rather than focusing solely on sanctions relief, the framework points toward reconstruction, infrastructure and investment as potential tools for securing a longer-term agreement.
What’s Next?
The proposal also mirrors the Trump administration vision for post-war Gaza reconstruction championed by Witkoff and Kushner, which centred on large-scale investment and redevelopment projects. The Financial Times reported a fund established for that initiative received no donor financing despite $7 billion in Arab pledges and a further $10 billion promised by Trump, while many across the Middle East condemned the plan as unacceptable.
Saudi Arabia Pushes Ahead With Riyadh Air Despite Regional Conflict
What Is It About?
Saudi Arabia is pressing ahead with the launch of Riyadh Air, its flagship national carrier, despite disruption caused by the recent Iran conflict. The airline has already begun limited operations on its London Heathrow route and is gradually expanding services ahead of a broader rollout. Backed by the kingdom's Public Investment Fund, Riyadh Air aims to serve more than 100 destinations by 2030 with a fleet exceeding 180 aircraft.
Why It Matters?
The airline sits at the heart of Vision 2030, Crown Prince Mohammed bin Salman's strategy to diversify the Saudi economy beyond oil. Riyadh Air is expected to contribute around $20 billion to GDP and support more than 200,000 jobs, while helping Riyadh compete with established Gulf aviation hubs such as Dubai, Abu Dhabi and Doha.
What’s Next?
Riyadh Air is preparing to launch additional routes across the Middle East, Europe, Africa and Asia while awaiting large-scale aircraft deliveries from Boeing and Airbus.
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