Saudi Arabia faces economic contraction as war repercussions worsen

The International Monetary Fund expects Saudi Arabia's GDP to contract by 3.3% this year, as repercussions of the Iranian war and Houthi attacks on oil facilities and airports intensify.

The International Monetary Fund has announced that Saudi Arabia faces an economic contraction this year, expecting the GDP to shrink by 3.3%. This comes amid escalating Houthi attacks, backed by Iran, targeting oil facilities and tankers in the Red Sea, as well as airports. The Riyadh-led coalition reported intercepting a Houthi missile over the capital on Monday evening, while the Houthis announced targeting the airport again. Mobile phones received a government warning of an "imminent aerial threat" before the missile interception was announced. The kingdom was already facing difficulties due to Iran restricting navigation in the Strait of Hormuz, since the US-Israeli attack on it on February 28. The resumption of war in Yemen in July after a relatively long truce brought military operations into the kingdom's territory.