Middle East conflict hits Norwegian business

The escalating conflict in the Middle East is hitting Norwegian business hard. Some 300 companies and 5,000 Norwegians are based in the Gulf states as the situation continues to deteriorate.

Around 300 Norwegian companies are active in the Gulf states, while approximately 2,500 Norwegians are temporarily based in the region, according to Norwegian authorities, E24 reports. A further 2,500 Norwegians live and work there permanently.

The situation has deteriorated following US and Israeli strikes against Iran on Saturday.

Anne Lorgen Riise, regional director at Innovation Norway’s Dubai office, says many are affected. Those directly impacted face a particularly difficult situation, while others continue to work from home as normal.

The impact varies significantly across sectors. Around 70 Norwegian companies have their own establishments in the UAE. Businesses dependent on physical infrastructure are considered more vulnerable than service companies. Innovation Norway export and investment director Eva Camerer also notes that the business community is in a quieter period due to Ramadan.

Kongsberg Gruppen has begun evacuating employees and their families, while Aker Solutions is also planning to bring home the families of staff based in Dubai, according to Stavanger Aftenblad.

Companies generally have contingency plans in place, according to Riise. How the investment climate is affected going forward will depend on how long the conflict lasts, Camerer says.