We're offering a 2-week trial of WrapPRO for $1. If you’ve been wanting to check out our full coverage, now’s the time. Greetings!In just four weeks, President Donald Trump's war in Iran has destabilized the Middle East, triggered the largest fuel supply disruption in history and prompted a global market selloff. But it's the long-term implications that should be what Hollywood is worried about. That's because a prolonged or escalated conflict could threaten what has become a consistent source of funding in an industry that's always in need of capital, as our Lucas Manfredi writes. If things drag out, the financing costs on existing deals backed by the Middle Eastern sovereign wealth funds could go up. Deals that haven't been signed may be put on hold for the foreseeable future. For all the discussion about the ethical considerations of taking investment from regimes that historically repressed journalists and the rights of the LGBTQ+ community, the entertainment industry hasn't had problems taking money from the Gulf. Recent examples include Qatar’s $150 million investment in Peter Chernin’s The North Road Company in 2023, Saudi Arabia’s $1 billion investment in former Lionsgate executive Erik Feig’s Arena SNK Studios last year and the pending $29 billion investment in a $55 billion buyout of Electronic Arts. And, of course, three Middle Eastern sovereign wealth funds have committed $24 billion in financing for Paramount’s acquisition of Warner Bros. Discovery. But as the conflict drags on, with 50,000 U.S. troops in the region, these countries could turn inward, focusing on defense and rebuilding efforts in the short term. In the event the conflict runs through April, Goldman Sachs forecasts that Saudi Arabia and the UAE’s gross domestic product could contract by 5% and 3%, respectively, while Kuwait and Qatar’s GDP could shrink by 14%. Experts who talked to Manfredi differed on just how much — or if — there will be a pullback in investing. But most agree that there will be more scrutiny and a higher bar if investments are made. "The money will start flowing again," Dr. Christopher Kummer, an economist and finance professor at Hult International Business School, told Manfredi. "But investors may be more disciplined about the projects and partnerships they commit to." Roger Cheng Before we move on, be sure to follow me on my socials linked below for the latest updates. DMs are open for tips.    
While experts are raising concerns about a potential pullback on investing — with a Reuters report saying that the top economies in the Gulf Cooperation Council are reviewing how they're deploying money through their sovereign wealth funds — Saudi Arabia and the United Arab Emirates say they're committed to the U.S.... 
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