Gulf states seen splurging on debt to build new Hormuz bypasses
Persian Gulf nations, including Saudi Arabia, Kuwait, the UAE, and Qatar, are expected to increase borrowing significantly to finance new bypasses around the Strait of Hormuz amid ongoing regional tensions. With bond sales reaching a record $112 billion this year, these countries aim to invest in infrastructure alternatives to reduce vulnerability to Iranian attacks. The UAE's foreign trade minister emphasized plans for new pipelines and ports to achieve 'zero Hormuz dependency,' indicating a strategic shift in energy export routes.