GULF WEEKLY: Kuwait airport hit in resumed fighting, PMIs rise in Saudi Arabia and UAE, Bahrain issues bond

GULF COUNTRIES - Report 05 Jun 2026 by Justin Alexander

A skimmable summary overlaid with our analysis and links. Headlines:

* Hopes for a US-Iran deal receded amidst tit-for-tat exchanges of fire and conflict in Lebanon.
* An Iranian drone hit Terminal 1 of Kuwait airport, killing a passenger and injuring 63.
* The UAE and Saudi Arabia ranked second and fourth globally in an AI talent attraction index.
* PMIs picked up in Saudi Arabia and the UAE, indicating expansion; Kuwait and Qatar remained in contraction.
* Saudi April banking data showed little sign of war panic, with a shift from cash to savings.
* Moody’s sees Saudi oil production averaging 8.4m b/d and the deficit narrowing to -2.7% of GDP.
* UAE non-oil GDP grew by 6.8% in 2025, led by construction (11.1%) and finance (10.4%).
* MGX doubled its planned investments in French data centers and bought more Anthropic.
* Moody’s sees Qatar’s LNG production at only a third of 2025 levels, but rebounding in 2027.
* Kuwait reduced its forecast for full oil production recovery to 3 months after Hormuz reopens.
* Bahrain sold a $1bn 10-year bond, the first public sovereign issuance during the war.
* Bahrain’s FX reserves fell by a third in April, but banking net foreign assets rebounded.
* Spending in Bahrain on foreign cards rebounded by 45% in April, with Saudi spending doubling.
* Databank updates: Qatar and Saudi forecasts, UAE GDP, PMIs.

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