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Israel reacted with alarm to both the U.S. choice to lift sanctions on Syria and President Trump's conference with Ahmed al-Sharaa. Because the fall of the Assad program in December 2024, Israel has been wary of the former jihadist now in control in Damascus.
Key GCC Market Research Insights in 2026It has actually also released troops in southern Syria, occupying an increasing area beyond the demilitarized zone separating the two countries. Going forward, Israel will remain wary of the Sharaa federal government and will likely continue to apply military pressure on Syria, consisting of 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 remains an open question. Given that the fall of Assad in December 2024, Saudi Arabia has actually lobbied hard for the United States to raise Syria sanctions, mentioning them as an essential barrier to the country's restoration.
For MBS, the U.S. choice stood as an important victory emerging from Trump's journey. Going forward, Saudi Arabia will likely motivate the United States to continue along its course toward normalization with Syria. It may promote the repeal of the Caesar sanctions, which must be carried out by Congress. Riyadh might likewise push the United States to rein in Israel, ought to it continue with aggressive military action in Syria.
Key GCC Market Research Insights in 2026, with no tip of a shift in policy. Going forward, Netanyahu can be anticipated to continue along the same trajectory in Gaza, particularly considering that a dramatic shift in U.S.
On the contrary, as the international outcry global Israel's 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 boosted prospect of possibility U.S. ongoing.
Riyadh instantly declined Trump's proposition and repeated its rejection to stabilize relations with Israel in the absence of significant progress toward the creation of a Palestinian state. The kingdom has actually also strongly criticized Israel for the absence of appropriate aid flowing into Gaza. Following the August 22 famine declaration, Saudi Arabia, while not calling out the United States, faulted the Israeli occupation as the cause of the "humanitarian disaster" in Gaza.
Its leading role in pushing 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 press Israel to relent on these demands, holding out on any development towards normalization with Israel in the lack of motion on these issues.
Its engagement in the Middle East is shaping the contours of the emerging regional orderwhether by default or design. Specifically, its decisions on Iran, Syria, and Gaza all discuss core obstacles in the region and hold the prospective to move each in a favorable instructions. Peril and deepening dispute stand on the flip side of each chance.
As international trade patterns straighten, 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 throughout Latin America's energy, farming, fintech, and facilities sectors. Trade in between Mexico and GCC states increased more than 33% in between 2021 and 2022, while non-oil trade with the UAE has actually almost doubled over the past decade.
3 Business belief shows this momentum64% of Latin American executives prepare to expand engagement with the Gulf, especially in farming, renewable resource, and digital services. 4 Highlighting this momentum, Saudi Arabia recently opened its first Chamber of Commerce office in Miami, further signifying the growing links between Gulf capital and the Americas.
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