GULF WEEKLY: Houthis strike Riyadh, Iran hits a record 12 ships, IMF forecasts -5% contraction

GULF COUNTRIES - Report 16 Oct 2026 by Justin Alexander

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

* A Houthi strike on Riyadh airport killed 13, and they also hit Aramco’s HQ in Dhahran.
* The Houthis tightened their encirclement of Taiz, Yemen’s third-largest city, and held on to most of the coast.
* 12 ships were struck in the Gulf region, a second consecutive weekly record, and two sank.
* Research by Reuters concluded that Iran was precise and effective in targeting GCC infrastructure.
* The IMF now forecasts -5% GDP contraction in the GCC (from -16% for Qatar to +4% for Oman).
* It sees a GCC deficit of -4.3% of GDP driving $102bn in net debt issuance, easing to -1.6% in 2027.
* Saudi production rebounded by 34% m/m in September as it shuttled more oil through Hormuz.
* The World Petroleum Congress went ahead in Riyadh in a hybrid format.
* There are plans to convert a Saudi gas pipeline to pump 1.2m b/d of oil east within two months.
* Dubai’s inflation eased slightly to 5.0% in September, driven by both tradables and housing.
* Dubai Investments Park is planning investor meetings for an IPO, which would be the first in the war.
* QatarEnergy reported a -35% revenue decline in H1 and disclosed $8.4bn in bond & loan financing.
* Qatar’s shuttling lifted September LNG exports to nearly a third of pre-war levels.
* Oman’s International Financial Center will begin registering companies by the end of the year.
* Bahrain is considering taking legal action to seek compensation for damages from Iran.
* Databank updates: GCC forecasts, Oman fiscal; inflation for Dubai, Oman and Saudi Arabia; OPEC oil.

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