Impact of Houthi attacks on Saudi economy 'limited' for now: IMF
Houthi attacks on Saudi Arabia are having only a "limited" economic impact on the kingdom so far, owing to robust domestic demand, the IMF's regional director told AFP, though geopolitical uncert...
The recent Houthi attacks on Saudi Arabia have caused only a limited economic impact on the kingdom thus far, according to the IMF's regional director Jihad Azour. While the attacks have targeted oil facilities and airports, robust domestic demand and a strong public sector have helped mitigate the effects. Despite Iran's blockade of the Strait of Hormuz and the Houthis' declaration of a maritime blockade, crude shipments continue to move.
However, the economy is still expected to contract by 3.3% this year due to the broader US-Israeli war with Iran. The IMF's regional report revealed that all Gulf states, except Oman, have seen reductions in their hydrocarbon production. Looking ahead, the IMF predicts a strong rebound of around 9.1% growth in 2026, although significant uncertainty remains due to ongoing geopolitical tensions and stalled diplomacy between the US and Iran.
Azour warned that further damage to infrastructure could result in higher costs, emphasizing that a strong rebound will depend on stability. The fundamentals of the Saudi economy are strong, but scars from the war will remain for a few years.
Written by urgent.news from Gulf Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
