Gulf businesses are flooding insurers with requests for political violence coverage worth millions of dollars as regional conflict escalates, according to the Financial Times. Companies including data centres, energy projects, pipelines, ports and hotels across the Gulf are seeking protection against risks ranging from war and terrorism to riots and strikes. Insurers report hundreds of new inquiries this week, signaling a sharp shift in risk management strategies.

Prices for political violence insurance have surged, rising to five times pre-war levels for some assets. For example, cover for a $20 million Saudi Arabian energy project might now cost $500,000 annually – up from less than $100,000 just weeks ago. Brokers attribute this spike to escalating attacks, including Iranian drone strikes on UAE and Bahrain data centres, which experts believe were deliberately targeted. Microsoft confirmed no outages despite regional tensions.

This insurance boom reflects investors' growing concern about collateral damage from the widening conflict. While some Gulf businesses previously held terrorism-only policies, brokers now advise clients to secure comprehensive political violence coverage that includes civil unrest. The trend underscores how geopolitical risks are reshaping corporate risk portfolios across the Gulf.