5 Top Points
- Gulf Shield 2026 military exercise: Saudi Arabia hosted the multinational Gulf Shield 2026 drills, concluding (10 January) with all GCC members participating. Kuwait’s armed forces reported intensive joint exercises in integrated air and missile defence, anti-terrorism and simulated combat, aimed at strengthening Gulf military interoperability. Bahrain, for its part, noted its air force wrapped up its role in the drills (12 January). These exercises underline continued defence cooperation among Gulf states.
- Oman’s social support measures: On Sultan Haitham’s Accession Day (11 January), Oman announced a sweeping relief package to ease living costs. The Cabinet approved OMR 50 million for job-creating projects, OMR 100 million for housing programmes, and doubled student grants.
- Qatar moves to widen foreign investment access: Qatar’s Cabinet approved a draft law amending provisions of Law No. 1/2019 regulating non-Qatari capital in economic activity (7 January), signalling a further opening to foreign investors to help raise private-sector contribution under the Third National Development Strategy 2024-2030.
- Saudi 2026 borrowing plan and Vision 2030 shift: Riyadh’s finance ministry approved a 2026 borrowing programme of SR 217 billion to cover a projected budget deficit of around SR 165 billion.
- UAE ‘Make it in the UAE 2026’ expo: The UAE’s Ministry of Industry announced at Abu Dhabi Sustainability Week that ‘Make it in the UAE 2026’ (scheduled 4-7 May) will offer new incentives to boost advanced manufacturing and green industries.
‘Round and About the Gulf’
Kingdom of Bahrain
Wednesday, 7 January – Bahrain launched its 2026 Labour Force Survey, carried out by the Information & eGovernment Authority and labour authorities. The national survey (covering circa 8,000 households) will update workforce statistics for policy planning, following ILO methods. This continues Bahrain’s efforts to monitor employment trends and inform labour market strategy.
Wednesday, 7 January – Bahrain hosted the fifth meeting of the GCC Armed Forces Directors of Military Co-operation in Manama. The Bahrain Defence Force reported that the meeting reviewed and refined the Gulf defence integration strategy, furthering long-term military cooperation among GCC members.
Monday, 12 January – The Cabinet, chaired by the Crown Prince, pledged to increase Bahraini employment to 25,000 citizens in 2026. This builds on 2025’s achievement of 26,963 Bahrainis employed (108% of the previous 25,000 target). Ministers instructed agencies to intensify training and placement programmes (including 10,000 new entry-level jobs) to meet the 2026 goal.
State of Kuwait
Sunday, 11 January – Kuwaiti forces took part in the concluding phase of Gulf Shield 2026 in Saudi Arabia. The Kuwait Armed Forces reported that the multilateral drills (involving land, air and naval components from all GCC states) tested collective readiness and enhanced coordination on air/missile defense, counter-terrorism and joint command scenarios.
Sultanate of Oman
Wednesday, 7 January – The Cabinet approved the creation of the Oman Global Financial Centre (OGFC) to accelerate economic diversification. In a strategic move, ministers agreed the OGFC will attract international banks and asset managers, aiming to boost Oman’s financial sector and GDP contribution. The new centre will operate with its own legal and tax frameworks to compete as a regional investment hub.
Monday, 12 January – On the Sultan’s Accession Day, Royal directives were issued to ease citizens’ living costs. The government allocated OMR 50 million to local development projects to create jobs (by increasing funds for regional projects). It also doubled scholarships and support for the 73,000-plus students in public education. Family allowance and labour support programmes were expanded to cover 57,000 eligible families. The State also committed to accelerate implementation of a 60,000-job recruitment programme in 2026. These measures reflect a broad social support effort on the Sultan’s anniversary.
State of Qatar
Thursday, 8 January: -The Cabinet approved new policies to enhance Qatar’s economy. Notably, it backed revisions to liberalise foreign investment laws (easing ownership and industry restrictions) and update technical standards to boost trade competitiveness . A National Sports Policy was adopted to develop the sports sector. Ministers also endorsed international agreements, including a double-taxation treaty with Iraq and a collaboration agreement with Belgium on conflict mediation.
Monday, 12 January – Mariam bint Ali Al Misnad Minister of State for International Co-operation travelled to Nicosia. She attended the ceremony marking Cyprus’s assumption of the EU Council rotating Presidency and met her Cypriot counterpart. Their discussions focused on expanding cultural links and Qatar’s role in EU-Mediterranean initiatives.
Kingdom of Saudi Arabia
Tuesday, 13 January – The Council of Ministers, chaired by King Salman, reaffirmed Saudi support for Somalia’s unity and territorial integrity. Citing the outcomes of a Jeddah OIC Foreign Ministers meeting, the Saudi Cabinet ‘rejected any parallel entities’ or division of Somalia and reiterated backing for the Somali government’s sovereignty. This statement signals Riyadh’s continuing engagement in Horn of Africa stability issues.
United Arab Emirates
Wednesday, 7 January – Lana Nusseibeh, Assistant Minister for Political Affairs and Envoy of the Minister of Foreign Affairs, represented the UAE at an event in Nicosia commemorating Cyprus’s EU Council presidency. On behalf of President Sheikh Mohamed, she attended the ceremony marking Cyprus’s turn as EU Council President, underscoring UAE-EU diplomatic engagement.
Tuesday, 13 January – The Ministry of Industry and Advanced Technology showcased the upcoming ‘Make it in the UAE 2026’ exhibition (4-7 May, Abu Dhabi) at the Abu Dhabi Sustainability Week. The ministry highlighted that the event will offer integrated incentives, funding and partnerships to grow the UAE’s heavy and high-tech industrial sectors, in support of the Net Zero 2050 strategy.
EU Corner
The EU took several steps in the region this week (7-8 January), with Commission President Ursula von der Leyen and Council President António Costa making a high-profile Middle East tour. They hosted the first EU-Jordan Summit in Amman with King Abdullah II, assessing progress on their new Strategic and Comprehensive Partnership. The leaders announced a Spring 2026 EU–Jordan Investment Conference and reiterated the EUR 3 billion support package (2025-27) to bolster Jordan’s economy.
Von der Leyen and Costa travelled to Syria and Lebanon, meeting respectively interim head of state Hussein al-Sharaa and Lebanon’s President Michel Aoun (7 January). The visits underscored the EU’s commitment to the region: they reaffirmed support for Syria’s long-term reconstruction and civil peace, and pledged further cooperation with Lebanon on stabilisation and reform. These trips followed the EU’s November 2025 ‘Pact for the Mediterranean’ initiative and signal Brussels’ intent to re-engage diplomatically with the Levant.
Key Official Visits & Contacts
Tuesday, 6 January – Omani Foreign Ministry Undersecretary Sheikh Khalifa al-Harthy met Luigi Di Maio, the EU Special Representative for the Gulf, in Muscat. They reviewed Oman-EU cooperation in energy, education and maritime security.
Tuesday, 6 January – UAE State Minister Sheikh Shakhboot bin Nahyan visited Addis Ababa. In high-level talks with Ethiopian officials, he reaffirmed the UAE-Ethiopia strategic partnership and underscored joint efforts to resolve regional conflicts (notably supporting a ceasefire in Sudan) .
Monday, 12 January – Kuwaiti Defence Minister Sheikh Abdullah bin Ali Al-Sabah hosted a reception for Kuwait’s embassy staff in Rome during an official trip. He praised their work in strengthening bilateral ties with Italy, reflecting ongoing Kuwait-Italy cooperation in defence and diplomacy.
Saturday, 10 January – UAE Foreign Minister Sheikh Abdullah bin Zayed held a videoconference with Canadian Foreign Minister Anita Anand. They discussed bilateral cooperation and ways to ‘further strengthen’ UAE-Canada relations across trade, investment and consular services.
Monday, 12 January – Qatar’s Minister of State for International Co-operation Dr Mariam Al Misnad attended events in Nicosia marking Cyprus’s assumption of the EU Council presidency. She met with Cypriot counterparts to discuss cultural and EU-level collaboration, underscoring Qatar’s outreach within Mediterranean and EU forums.