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The economy grew strongly despite several headwinds, with the policy responses mostly fitting the need. How sustainable is the growth rate, though?

The regional economy is expected to take a big hit in 2026, venture capital activity is starting to show signs of strain, and Saudi Arabia’s sovereign fund has a new investment strategy.
Though the war in the Gulf is pinching the Indian economy, things aren’t too bad. But much needs to be done if the situation drags on or worsens, rather than waiting for it to come to pass.
Fiscal discipline holds on paper, but the number is propped up by higher borrowing and revenue sources that are far from stable.