Iran’s Monthslong Internet Shutdown Is Crushing Businesses in an Already Battered Economy

A man uses his smartphone while riding the subway in Tehran, Iran, Tuesday, Dec. 24, 2024. (AP)
A man uses his smartphone while riding the subway in Tehran, Iran, Tuesday, Dec. 24, 2024. (AP)
TT

Iran’s Monthslong Internet Shutdown Is Crushing Businesses in an Already Battered Economy

A man uses his smartphone while riding the subway in Tehran, Iran, Tuesday, Dec. 24, 2024. (AP)
A man uses his smartphone while riding the subway in Tehran, Iran, Tuesday, Dec. 24, 2024. (AP)

At her studio in Iran's capital, Amen Khademi prepared a fashion shoot for a jacket she designed with Persian-inspired motifs. But even as she applied lipstick to the model, she was distracted, worrying if her business would survive after four months without its main link to customers — the internet.

Iran's 90 million people have been cut off from the internet for most of 2026, one of the world's longest and strictest national shutdowns. That is devastating an online economy that had long defied government restrictions and international sanctions. From fashion to fitness, to advertising and retailers, many have seen their incomes evaporate.

Khademi hasn't made a sale in months. “The internet outage in the past four months has completely destroyed not only my business, but many online businesses," she said.

Despite an uneasy truce with the US and Israel, Iran’s rulers have refused to reverse the shutdown they have depicted as a wartime necessity. But they are facing an outcry as it adds to mass job losses from strikes on key industries and an ongoing US blockade.

Before January, Iranians could access the internet, but authorities blocked a large amount of content. Now all access to the global web has been shut down. Some workarounds exist, but they have become enormously expensive, out of reach for most Iranians.

The internet cutoff costs the economy an estimated $30-40 million daily, with indirect losses likely twice that much, a member of Iran’s Chamber of Commerce, Afshin Kolahi, told a local newspaper. About 10 million people have jobs that depend on internet connectivity, according to the communications minister, Sattar Hashemi.

An unprecedented shutdown guts an online economy

Throughout years of economic turmoil in Iran brought on by sanctions and mismanagement, platforms like Instagram and WhatsApp helped small businesses to find customers, and people to earn extra income to afford skyrocketing prices for basic goods.

Iranian authorities first shut down the internet in January during mass anti-government protests. That cutoff was just starting to ease when the government imposed a complete internet blackout on Feb. 28 as the US and Israel launched the war.

Mahsa Alimardani, an expert on internet censorship, said Kashmir and Myanmar have had longer blocks affecting specific regions or platforms. Countries like China, with its “Great Firewall,” and North Korea, have always strictly limited access to the global internet.

Fashion designer Amen Khademi works on her laptop with model Farnaz Ojaghloo, left, at her studio in Tehran, Iran, Thursday, April 23, 2026. (AP)

“What makes Iran’s shutdown unprecedented is the combination of scale and severity: an entire country of 90 million people with a developed digital economy deliberately reverted to a controlled national intranet,” said Alimardani, an associate director for technology threats and opportunities at the rights group Witness.

A flagship company of Iran’s digital economy, online retailer DigiKala, recently said it was laying off 200 people, about 3% of its workforce. The pain extends to “production, foreign trade and even traditional business,” Reza Olfatnasab, head of a national group representing digital businesses, said in comments published in Iranian media.

Khademi's shopfront is Instagram. But her studio’s page — with more than 30,000 followers — is now inactive. She was doing the photo shoot to save the pictures for later, hoping to find an alternative.

Her model, Farnaz Ojaghloo, is also a fitness coach. The shutdown has dried up both her modeling gigs and the online courses she ran for people inside Iran and abroad.

“Psychologically, it really hits hard,” Ojaghloo said. “All the plans you had for six months or a year ahead get pushed aside, and your only concern becomes surviving in the moment.”

The alternatives are ‘terrible’

For years, authorities in Iran have enforced filters and policed content on platforms like YouTube and Instagram. But before the war, Iranians could bypass restrictions with cheap virtual private networks, known as VPNs, and other easy workarounds.

Now, the shutdown has stoked high prices for black-market VPNs. Iranian state media routinely report arrests of people for using illegal VPNs or the American satellite system Starlink, which was banned last year.

Senior government officials are awarded “white” SIM cards granting them access to the global internet. Under pressure to alleviate the economic harm, the government is now allowing less-restricted internet access to a small number of professions, business and media.

An e-commerce trade group in Tehran condemned the tiered system in Iranian media on Wednesday, calling it “an abuse of an obvious need of every citizen.” It said the outage threatens “the destruction of the country’s infrastructure at the hands of our own decision-makers.”

The vast majority of people have no choice but Iran’s national net.

Two women use a smartphone in northern Tehran, Iran, Sept. 28, 2025. (AP)

A Tehran resident who works in advertising said sponsors have little interest in paying for content that can’t be posted on major platforms like Instagram, where he has tens of thousands of followers. He said his income is down to near zero since the war began.

A gamer in Isfahan — also with a large following on YouTube and Instagram — said Iran’s domestic net “is terrible” — slow, insecure and full of bugs. He too has lost almost all his income from sponsors and donations.

Iran has its own social media platforms modeled on services like WhatsApp and YouTube, but content is closely monitored and often censored.

“Nobody really wants to use these platforms, but there is no other option,” the gamer said. Both he and the advertising worker spoke on condition of anonymity out of security concerns.

A growing number of street vendors

The shutdown has piled new pressures on Iran’s once large and educated middle class, already struggling in the face of a prewar currency crash.

Economic decline in Iran has spurred waves of anti-government protests, most recently in December. Now, more Iranians are thinking of emigrating, a software developer said.

The developer — likewise speaking on condition of anonymity out of safety fears — said the internet shutdown has wiped out remote work. He lost his own job when his former company laid off almost all its employees in recent weeks, he said.

The consequences are visible in the rising numbers of street peddlers in Tehran. Reza Amiri, a 32-year-old former employee of an internet provider, now sells hats and umbrellas by a metro stop. He lost his job after the war started and has not received his last month’s salary, he said.

Monireh Pishgahi sells ornaments and accessories on the capital’s famed Vali Asr Street. She said her tailoring business used to supply three online shops. As business dried up, she shut down and laid off her five employees.

One downtown shopkeeper, Mohammad Rihai, said he had given up on trying to persuade street vendors to stop blocking the sidewalk outside his store. “After the war, you see them all along the sidewalk. I cannot fight them anymore.”



Saudi Real Estate Developers Move to Capitalize on New Foreign Ownership Rules

A general view of buildings and homes in the Saudi capital, Riyadh (File photo: Reuters)
A general view of buildings and homes in the Saudi capital, Riyadh (File photo: Reuters)
TT

Saudi Real Estate Developers Move to Capitalize on New Foreign Ownership Rules

A general view of buildings and homes in the Saudi capital, Riyadh (File photo: Reuters)
A general view of buildings and homes in the Saudi capital, Riyadh (File photo: Reuters)

Saudi Arabia's real estate market has entered a new phase of testing the practical impact of the executive regulations governing property ownership by non-Saudis, as listed developers move swiftly beyond welcoming the decision and the initial positive market reaction to translating it into strategic growth plans.

While the sector index has extended its early gains on expectations that the new rules will broaden international demand, the competitive advantage is beginning to shift toward companies with high-quality assets that are ready to be marketed and sold.

The real estate index on the Saudi stock market posted a sharp gain following the announcement, rising from 2,924 points to 3,044 points. The increase was driven by investor expectations that allowing non-Saudis to own property under specific regulations would expand demand for Saudi real estate assets, particularly in cities and projects with strong investment and religious appeal.

Real estate stocks led the market's gainers in the session following the announcement. Shares of Umm Al Qura for Development and Construction (Masar) hit the daily 10 percent limit, while Knowledge Economic City rose about 9.3 percent. Jabal Omar Development, Retal, Emaar The Economic City, and Makkah Construction and Development also posted strong gains.

Financial and economic adviser Dr. Hussein Al Attas told Asharq Al-Awsat that allowing non-Saudis to own property represents an important structural shift for Saudi Arabia's real estate market, but said the impact will not be uniform across all developers. Instead, the market will increasingly differentiate between companies with attractive assets and projects in locations targeted by international investors and those without them.

Master plan of the Masar Makkah destination (Masar)

He added that asset quality, location, financial strength, the size of developable land holdings, and the ability to attract international investors will be among the key factors determining how much companies benefit from the decision in the coming period.

Al Attas expects the sector to perform positively over the medium to long term. However, he said the real impact of the decision will ultimately be measured by companies' ability to turn this opening into actual sales, partnerships, and cash flows, rather than by the initial rise in share prices following the announcement.

In the first concrete move by a listed company since the regulations were approved, Jabal Omar Development on Sunday outlined its strategy for capitalizing on the decision after its project in Makkah was included within the geographic areas where non-Saudis are permitted to own property.

The company said the decision would broaden its base of potential investors and property owners among Muslims around the world, supporting demand for its real estate assets. It also announced plans to offer 400 existing hotel residential units for sale this year as the first phase of the program, with the proceeds earmarked to reduce debt and lower financing costs.

The company also plans to redesign the seventh and final phase of the project by increasing the number of hotel residential units available for sale while making greater use of off-plan sales programs to reduce financing requirements and strengthen reliance on internally generated liquidity.

Al Attas said the market's response to the regulations has unfolded in two stages. The first was a broad wave of optimism that lifted most real estate companies. The second has begun as investors seek to identify the companies best positioned to convert the decision into tangible growth in sales, cash flow, and profitability.

The decision to allow non-Saudis to own property forms part of a broader package of measures introduced by the Kingdom in recent months to restore balance to the real estate market and strengthen its investment appeal.

These measures include allowing the sale, purchase, and development of land in new areas north of Riyadh, increasing fees on undeveloped land, imposing fees on vacant properties, and freezing annual rent increases in Riyadh for five years.

The decision also coincides with signs of improving real estate and construction activity across the Kingdom. The construction sector returned to growth in May, supported by stronger residential building activity and renewed growth in new orders.

Although the full impact of the regulations will take time to emerge, recent moves by real estate developers indicate that the market has already begun shifting from expectations to execution as companies seek to attract a new segment of investors and buyers from outside the Kingdom.


China Imposes New Export Controls, Deepening Japan Row

FILE PHOTO: A China yuan banknote featuring late Chinese chairman Mao Zedong and a computer keyboard are seen reflected on an image of Chinese flag in this illustration picture taken November 1, 2019.  REUTERS/Florence Lo/Illustration/File Photo
FILE PHOTO: A China yuan banknote featuring late Chinese chairman Mao Zedong and a computer keyboard are seen reflected on an image of Chinese flag in this illustration picture taken November 1, 2019. REUTERS/Florence Lo/Illustration/File Photo
TT

China Imposes New Export Controls, Deepening Japan Row

FILE PHOTO: A China yuan banknote featuring late Chinese chairman Mao Zedong and a computer keyboard are seen reflected on an image of Chinese flag in this illustration picture taken November 1, 2019.  REUTERS/Florence Lo/Illustration/File Photo
FILE PHOTO: A China yuan banknote featuring late Chinese chairman Mao Zedong and a computer keyboard are seen reflected on an image of Chinese flag in this illustration picture taken November 1, 2019. REUTERS/Florence Lo/Illustration/File Photo

China put 20 more Japanese organizations on a blacklist Monday over the export of items with both military and civilian possible uses, adding fuel to a months-long row with Tokyo.

The new additions, including major companies, "have participated in enhancing Japan's military capabilities", the Chinese commerce ministry said in a statement.

Japan's government spokesman Minoru Kihara called the measures "unacceptable and deeply regrettable" and said Tokyo had "lodged a strong protest and demanded that the measures be withdrawn."

The countries' have been at row since Japanese Prime Minister Sanae Takaichi suggested in November that Tokyo may react militarily to an attack on Taiwan, the self-ruled island Beijing has vowed to seize control by force if necessary.

China responded furiously, including by advising its citizens -- previously the biggest cohort of foreign tourists -- to avoid Japan.

Chinese authorities ramped up pressure in February by imposing export restrictions on dozens of Japanese firms it said were involved in building up Tokyo's military.

The 20 additions to the export blacklist named Monday include specialized subsidiaries and technology firms involved in supplying components and engineering support for Japan's defense sector.

Among them are the National Institute for Defense Studies and Mitsubishi Electric Defense and Space Technologies Corporation, the statement said.

China's commerce ministry said the controls require exporters to submit risk assessments and guarantees that dual-use items will not enhance Japanese military strength prior to making shipments.

Those named on the watchlist can apply to be removed by cooperating with "verification" procedures according to Chinese law, the ministry said.

China is the world's largest producer and refiner of rare earths, which are crucial for various high-tech products including electric vehicles, smartphones, missile guidance systems and lasers.

Japan has "strayed further down the wrong path, intensifying its push for a 'new form of militarism'", an unnamed commerce ministry spokesperson said in a statement on the latest measures.

- China-Russia patrols -

Since Takaichi took office in October, Japan has quickened its pivot towards a more proactive defense policy, further shaking off -- with US encouragement -- a pacifist outlook, which has been in place since the end of World War II.

Tokyo has loosened rules on exports of lethal weaponry and deepened military cooperation with other countries in the region at odds with China including the Philippines.

Japan and the United States, as well as many other countries, are seeking to curb dependence on China in rare earths, as Beijing increasingly uses its dominance for geopolitical leverage.

Japan on Monday also joined South Korea in criticizing joint flights by Chinese and Russian bombers and fighters over the weekend in the region.

Fellow US allies South Korea and Japan both scrambled fighter jets in response to the patrols by the convoy of around 15 aircraft on Saturday.

"This marks the 10th instance of such long-range activities by Chinese and Russian bombers in the vicinity of Japan since December last year," Japanese government spokesman Kihara said Monday.

Beijing's defense ministry said that the Chinese and Russian air forces conducted a "strategic air patrol" over the Sea of Japan, the East China Sea and the western Pacific Ocean, "demonstrating their determination and capability to jointly uphold regional peace and stability".

Tokyo last week also rejected Beijing's accusations that the Japanese military "harassed" a Chinese aircraft carrier strike group during 40 days of exercises in the Pacific.

 


EU, China Trade Tensions Loom over Minister Visit

Chinese Commerce Minister Wang Wentao will meet his EU counterpart Maros Sefcovic in Brussels. Pedro PARDO, Annabelle GORDON / AFP/File
Chinese Commerce Minister Wang Wentao will meet his EU counterpart Maros Sefcovic in Brussels. Pedro PARDO, Annabelle GORDON / AFP/File
TT

EU, China Trade Tensions Loom over Minister Visit

Chinese Commerce Minister Wang Wentao will meet his EU counterpart Maros Sefcovic in Brussels. Pedro PARDO, Annabelle GORDON / AFP/File
Chinese Commerce Minister Wang Wentao will meet his EU counterpart Maros Sefcovic in Brussels. Pedro PARDO, Annabelle GORDON / AFP/File

Europe and China will gauge whether trade frictions can be resolved through talks Monday when top EU trade official Maros Sefcovic hosts his Chinese counterpart Wang Wentao in Brussels for day-long discussions.

The European Union has turned its attention to China as Brussels frets over increasing trade imbalances between the 27-nation bloc and the Asian powerhouse.

The issue is existential for the EU, AFP reported.

Brussels fears it will lose certain industries entirely if it does not act against a glut of cheap goods made in China threatening manufacturers in Europe.

Wang's visit comes less than two weeks after EU leaders tasked the European Commission with tackling the issue through talks with Beijing -- while simultaneously preparing beefed-up defense measures to protect key sectors.

Sefcovic will tell Wang the current imbalances are unsustainable for the EU before hosting the Chinese minister for a special dinner on Monday evening.

The EU's trade deficit in goods hit around 360 billion euros ($410 billion) in 2025, meaning the bloc imported way more from China than it exported there.

In turn, Wang will likely seek to understand how serious the EU is in threatening to deploy its trade defense armory against Beijing.

But the EU still hopes to avoid a trade war with its second-largest trading partner for goods alone, according to the European Commission -- with China making clear it will retaliate against actions it views as unfair.

Following Trump's playbook?

Europe insists on the need for a level-playing field, pointing out that Chinese firms have an unfair advantage because of massive state subsidies.

The numbers support Brussels' argument. Between 2005 and 2024, Chinese companies received around three to eight times more government support than businesses in the Organization for Economic Co-operation and Development, according to the OECD, which called it "a conservative estimate".

The EU has an arsenal of trade defense tools it can use to address the issue.

These include imposing higher tariffs if investigations prove companies are selling goods at unfairly low prices or if there is state support that gives an unjust advantage to the manufacturers.

Brussels could also slap restrictions known as safeguard measures -- including quotas -- if there is a sudden surge in imports.

New measures are likely also on the way.

The European Commission, which leads EU trade policy, is working on an instrument that would force businesses to diversify their suppliers in critical sectors like chips and rare earths.

And French President Emmanuel Macron in May proposed a European "Section 301" -- the trade tool US President Donald Trump has employed to set higher tariffs for certain sectors after investigations.

'Not enemies'

The EU has taken several measures to confront soaring imports from China including doubling its duties on foreign steel, slapping higher levies on small parcels from abroad and hefty tariffs on Chinese-made electric vehicles.

Despite growing acceptance of the need to get tougher however, Brussels has shown zero appetite for a painful trade war with Beijing.

Beijing warns it is ready to respond to any measures it believes target China.

They are not empty threats for the EU since China previously slapped duties on European cognac and conducted anti-dumping probes into pork and dairy products.

The warning weighs on EU capitals.

Germany has until recently been more cautious since it is more exposed to China's economy but the biggest supporter of a more pragmatic approach has been Spain as it seeks Beijing's investment.

Although he echoed China's retaliation warning last week, Beijing's envoy to the EU Cai Run also urged dialogue as he told a Brussels audience that the bloc and Beijing were "partners, not rivals, and certainly not enemies".

The relationship is significant for China too: the EU is its second-largest trading partner.

After dinner with Sefcovic, Wang will head to London.