The world is witnessing an era of heightened political polarization and escalating trade wars, reminiscent of the Cold War era but with an even greater economic impact. These developments, often intertwined, have significantly altered the global economic landscape. The trade war between the United States and China, for instance, has had ripple effects worldwide, while even close allies such as the US and the European Union, Canada, and Mexico have found themselves engaged in economic disputes. The resulting economic uncertainty has manifested in slowed global growth projections, declining stock markets, and volatile commodity prices.

Amid this turbulence, Saudi Arabia and its Gulf Cooperation Council (GCC) allies have carefully navigated these challenges to protect their economic interests and regional stability. They have strategically balanced relations with major global powers while simultaneously positioning themselves as key mediators in conflicts, including the war in Ukraine. Saudi Arabia, in particular, has leveraged its economic influence, energy resources, and diplomatic prowess to shield itself from global instability and contribute to international peacemaking efforts.

As trade wars intensify, global economic growth has slowed considerably. The Organisation for Economic Co-operation and Development (OECD) recently downgraded its forecasts for global growth in 2025 and 2026, citing economic struggles in the US, Canada, Mexico, and the UK. Simultaneously, the Dow Jones Industrial Average has experienced sharp declines, reflecting market uncertainty and trader anxiety. The global economy appears increasingly fragile due to persistent geopolitical tensions and economic protectionism.

One of the most affected industries has been energy. Brent crude oil prices have dropped by more than 15% from their peak of over $82 per barrel in January to below $70 per barrel. Goldman Sachs has adjusted its oil price forecast downward, now projecting Brent crude to reach $71 per barrel by December. This........

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