Crucial Middle East Business Analysis Trends in 2026

Israel responded with alarm to both the U.S. decision to raise sanctions on Syria and President Trump's meeting with Ahmed al-Sharaa. Considering that the fall of the Assad regime in December 2024, Israel has been cautious of the former jihadist now in control in Damascus.

It has also released troops in southern Syria, inhabiting an increasing location beyond the demilitarized zone separating the 2 nations. Moving forward, Israel will stay wary of the Sharaa federal government and will likely continue to apply military pressure on Syria, including a broadened occupation of southern Syria and periodic air strikes.

Israel's openness to the Trump administration's efforts to broker a nonaggression pact between Israel and Syria remains an open question. Instead, Syria might end up being a locus of regional power competitors between Israel and Turkey as both look for to exert their influence over Syria's trajectory. Given that the fall of Assad in December 2024, Saudi Arabia has lobbied hard for the United States to raise Syria sanctions, citing them as a key barrier to the country's reconstruction.

For MBS, the U.S. decision stood as a crucial success emerging from Trump's journey. Moving forward, Saudi Arabia will likely encourage the United States to continue along its course toward normalization with Syria. It might promote the repeal of the Caesar sanctions, which need to be undertaken by Congress. Riyadh may also push the United States to rein in Israel, should it continue with aggressive military action in Syria.

Crucial Middle East Business Research Trends for 2026

, with no hint of a shift in policy. Going forward, Netanyahu can be expected to continue along the same trajectory in Gaza, particularly considering that a significant shift in U.S.

ANSR July GCC PRs 50DR+

On the contrary, as the international outcry against IsraelVersus actions in Gaza grows and with an increasing number of U.S. allies moving to declare a Palestinian state, Israel is likely to most likely its position further, even more by reinforced prospect of continued U.S. support.

Riyadh immediately rejected Trump's proposal and reiterated its refusal to stabilize relations with Israel in the absence of significant progress towards the development of a Palestinian state. The kingdom has actually also strongly slammed Israel for the absence of sufficient aid streaming into Gaza. Following the August 22 starvation statement, Saudi Arabia, while not calling out the United States, faulted the Israeli occupation as the cause of the "humanitarian catastrophe" in Gaza.

ANSR July GCC PRs 50DR+

Its leading role in promoting 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 development toward normalization with Israel in the absence of motion on these concerns.

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Its engagement in the Middle East is shaping the shapes of the emerging regional orderwhether by default or style. Particularly, its choices on Iran, Syria, and Gaza all touch on core challenges in the area and hold the prospective to move each in a favorable direction. Yet, danger and deepening conflict base on the other side of each chance.

As international trade patterns realign, a new investment corridor is taking shape, linking capital from the Gulf to Latin America. Sovereign wealth funds, corporations, and household workplaces from the Gulf Cooperation Council ("") are investing billions across Latin America's energy, farming, fintech, and infrastructure sectors. Trade in between Mexico and GCC states rose more than 33% in between 2021 and 2022, while non-oil trade with the UAE has actually nearly doubled over the past years.

3 Company belief reflects this momentum64% of Latin American executives plan to expand engagement with the Gulf, particularly in farming, renewable energy, and digital services. 4 Underscoring this momentum, Saudi Arabia recently opened its very first Chamber of Commerce office in Miami, more indicating the growing links in between Gulf capital and the Americas.