this post was submitted on 12 Oct 2026
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Snip:

Riyadh has suffered significantly as a result of its renewed war on Yemen and Sanaa’s retaliatory strikes, widening the country’s budget deficit and pushing the Saudi economy to the brink of “contraction,” the Wall Street Journal (WSJ) reported on 12 October.

“The conflict is jeopardizing Saudi efforts to build travel and tourism into a pillar of the economy, including [the] international investment conference scheduled for the end of the month that is now increasingly in doubt. The costs of the war have already widened the budget deficit and threaten to push the economy into contraction,” WSJ writes.

Saudi Arabia spent heavily over recent years as part of Crown Prince Mohammed bin Salman’s (MbS) modernization efforts, including on plans for the futuristic city of Neom and other high-budget projects.

The fallout of the war on Iran has seriously impacted these plans, particularly with the kingdom’s $350 million annual budget and the impact of Sanaa’s operations.

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