Business Recorder
The war situation between US and Iran is creating a business shift for Pakistan within the Gulf region which may create challenges and opportunities alike, mainly for the growing IT, fintech and allied sectors. Iran war has pushed the Gulf region into a state of economic and strategic uncertainty, with disruptions in shipping routes, energy flows, and investment activity. Blockade and intermittent incidents in the Strait of Hormuz—through which a significant share of global oil passes—have rattled markets and slowed business confidence across key Gulf economies, even as fragile diplomatic efforts continue. Also read: Oil prices up 3.22% after EIA shows drop in fuel stocks, reports container ships in Hormuz hit by gunfire According to industry experts, Pakistan’s IT companies are witnessing a slowdown in business activities in the Gulf region, particularly in the United Arab Emirates (UAE) and Qatar, whereas a major market such as Saudi Arabia remains stable and growing despite challenges for logistics amid security concerns. Saad Shah, an IT exporter, said Saudi Arabia has maintained its demand for foreign companies in IT sector and infrastructure development despite the tense situation in the region - an evident that many Pakistani companies are getting projects in public and private sectors. On the other hand, the business situation from other Gulf economies seems a cautious break, as the government and private sector kept their new projects on hold not only for Pakistanis but for foreign countries due to the prevailing situation. Also read: Pakistan’s IT exports surge to over $3bn in 9MFY26 Pakistani IT companies should remain vigilant in terms of exploring emerging opportunities within the Gulf region, particularly in Saudi Arabia to offset the business slowdown in specific markets of this region due to uncertain geo political situation, as per industry experts. Senior Vice Chairman Pakistan IT Association Muhammad Umair Nizam said the current geopolitical situation in the Gulf region presents a strategic opportunity for Pakistan’s IT sector, rather than solely a threat. “Success for Pakistani firms will be predicated on demonstrating reliability, adherence to regulatory standards, a nuanced understanding of regional dynamics, and a strong commitment to on-the-ground presence, rather than solely competing on price,” he said. To capitalise on these opportunities, Nizam continues, Pakistan must strategically enhance its value proposition by focusing on advanced domains including cybersecurity, cloud deployment, AI implementation, digital public infrastructure, fintech solutions, and managed services. “Concurrently, it is imperative to advocate for policy consistency and cultivate a more robust commercial footprint within Gulf Cooperation Council markets. While Pakistan’s recent export performance and the government’s facilitative measures indicate a solid foundational base, the critical determinant of success will now be the effectiveness of execution,” he further said. Dr Noman Said, and IT exporter and CEO S I Global Solutions, said the overall peace crisis in the Middle East region exposed vulnerabilities of many countries in Gulf region on a security front. “On the other, this war unveiled new dimensions and challenges of security threat to be required for deterrence and defense strategy for every country.” He was of the view that Pakistani IT sector did not only need to develop an advanced security system for its own cyber borders but it had to aid Saudi Arabia to ensure its defense system as per a strategic agreement signed by the two countries . Dr Noman said IT companies might witness a shift of business within the Gulf region. However, he added, the availability of human capital was prerequisite in fields of cybersecurity, AI, and advanced security operations to meet the emerging demand in foreign markets. “With the experienced and trained professionals in the field of advanced security, our country needs to prepare a cyber army for its own defense first and export manpower in this field to GCC region and different countries of the world in the second phase.” He suggested that a national level programme should be designed on human resource development in IT and security operations to cater to the national and international demands. “In this regard, the ministry of education and defense should launch an advanced curriculum in public and private sector universities to prepare a cyber army in near future,” Dr Noman said.
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