Saudi Arabia faces economic contraction as war woes mount

The International Monetary Fund expects Saudi Arabia’s economy to shrink by 3.3% this year due to regional war and deadly attacks by Yemen’s Houthis, according to reports from Punch and Free Malaysia Today. Free Malaysia Today notes the kingdom was already facing pressure from Iran’s blockade of the Strait of Hormuz following attacks by the US and Israel on Iran in February. The situation has been further complicated by the July restart of Yemen’s civil war.

Recent Houthi strikes have targeted Saudi oil facilities and tankers in the Red Sea. Egypt Independent reports that Saudi Arabia intercepted and destroyed three Houthi ballistic missiles on Monday, with one intercepted over Riyadh and two over Khamis Mushait. The Houthi-controlled armed forces claimed responsibility for targeting a military base and Riyadh’s King Khalid International Airport.

According to Egypt Independent, these attacks have killed at least 20 people and wounded hundreds over the past week, including a strike on Saturday that killed at least 13 people and wounded more than 300.

Following the attacks, King Khalid International Airport has remained closed, with a notice to air missions indicating it will stay shut until at least October 17. Live Mint reports that the Saudi civil aviation authority suspended operations to ensure the safety and readiness of airport facilities. The disruption has led various airlines across Europe and Asia to suspend services, including India's IndiGo, which has cancelled flights to Riyadh, Jeddah, Dammam, and Madinah until October 17.

Additionally, the US Federal Aviation Administration advised US carriers to exercise caution, while the EU aviation body EASA issued a warning citing missile and drone attacks.

Brief written by urgent.news from Punch, Free Malaysia Today, Ajel English, Egypt Independent, Live Mint — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.