Essential Middle East Business Analysis Trends for 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. Since the fall of the Assad program in December 2024, Israel has been cautious 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 two countries. Going 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 occasional air campaign.

Israel's openness to the Trump administration's efforts to broker a nonaggression pact between Israel and Syria stays an open concern. Since the fall of Assad in December 2024, Saudi Arabia has lobbied hard for the United States to lift Syria sanctions, citing them as a crucial obstacle to the nation's reconstruction.

For MBS, the U.S. decision stood as an important victory emerging from Trump's journey. Going forward, Saudi Arabia will likely encourage the United States to continue along its course toward normalization with Syria.

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Despite broadening domestic and global criticism of Israel's approach, the prime minister has not fluctuated in his broadening occupation of Gaza in the lack of any U.S. pressure. Certainly, the prime minister appears to indulge in U.S. support, without any hint of a shift in policy. Moving forward, Netanyahu can be expected to continue along the very same trajectory in Gaza, specifically since a remarkable shift in U.S.

On the contrary, as the international outcry against Israel's actions in Gaza grows and with an increasing number of U.S. allies transferring to declare a Palestinian state, Israel is most likely to entrench its position even more, reinforced by the possibility of ongoing U.S. assistance. Indeed, the Trump administration announced its decision to reject visas to the Palestinian Authority leadership ahead of the UN General Assembly, apparently in reaction to installing calls for stating a Palestinian state.

Riyadh instantly rejected Trump's proposition and reiterated its rejection to normalize relations with Israel in the absence of considerable progress toward the creation of a Palestinian state. The kingdom has actually also highly criticized Israel for the absence of adequate help streaming into Gaza. Following the August 22 starvation declaration, 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 solution at the 80th UN General Assembly stands as its most popular effort in this regard. The kingdom will likely continue its behind-the-scenes lobbying of the United States to press Israel to relent on these needs, holding out on any development towards normalization with Israel in the lack of motion on these problems.

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Its engagement in the Middle East is forming the shapes of the emerging regional orderwhether by default or style. Specifically, its decisions on Iran, Syria, and Gaza all discuss core challenges in the region and hold the prospective to move each in a positive instructions. Hazard and deepening conflict stand on the flip side of each opportunity.

As global trade patterns straighten, a brand-new financial investment corridor is taking shape, connecting capital from the Gulf to Latin America. Sovereign wealth funds, conglomerates, and family offices from the Gulf Cooperation Council ("") are investing billions across Latin America's energy, agriculture, fintech, and facilities sectors. Trade between Mexico and GCC states rose more than 33% between 2021 and 2022, while non-oil trade with the UAE has almost folded the past years.

3 Organization belief shows this momentum64% of Latin American executives prepare to expand engagement with the Gulf, specifically in farming, eco-friendly energy, and digital services. 4 Highlighting this momentum, Saudi Arabia recently opened its first Chamber of Commerce workplace in Miami, more signifying the growing links between Gulf capital and the Americas.