Asian Banks’ Billions in Gulf Loans at Risk Amid Mideast Turmoil

The multibillion dollar ramp-up in loans by Asian banks to the Middle East faces growing uncertainty as Iran’s escalating conflict raises the risk of broader financial fallout.

Asian and Chinese banks, which have emerged as the Gulf’s top financiers, extended more than $15 billion in loans last year — a record high and triple the previous year — with most of the capital flowing to Saudi Arabia and the United Arab Emirates, according to Bloomberg-compiled data. That surge now faces a critical test, as the Iran crisis threatens to reshape lending strategies and cast uncertainty over the banks’ pursuit of opportunities in the region.