Youth movement bombs Riyadh financial center, Saudi Aramco building attacked

Saudi Aramco's building in Riyadh Financial Center was attacked on Sunday (8th). (AFP file photo)

[Financial Channel/Comprehensive Report] The Yemeni rebel youth movement launched a new round of missile attacks on Riyadh, the capital of Saudi Arabia, on Sunday (8th). This operation destroyed a landmark building in Riyadh's financial center. The office building of the oil giant Saudi Aramco was slightly damaged. Fortunately, there were no casualties.

"Bloomberg" reported that the rare attack on the King Abdullah Financial District (KAFD) is undoubtedly adding insult to injury for international companies that have been affected by months of conflict. KAFD is home to the Saudi Arabian Public Investment Fund (PIF), the stock exchange, global advisory firms, and financial giants such as Goldman Sachs and Brookfield.

A youth movement that has been at war with Saudi Arabia for a decade claimed responsibility for the attack, and Saudi authorities later said they had retaliated by destroying two missile launchers used in the attack.

When the air strike occurred, KAFD was enforcing a remote working order, which limited the impact of the attack to a certain extent, but the time of the air strike coincided with the morning commute rush hour, and many schools in Riyadh resumed physical classes within this month. KAFD originally told tenants a few days ago that they could return to the office, but on Saturday (7th) the policy made a sharp U-turn and ordered the resumption of remote working until further notice from the authorities.

The latest attack is likely to limit the travel of more corporate executives between hubs such as Dubai, Abu Dhabi and London and Riyadh. About a month ago, the youth movement attacked Riyadh's main airport, killing a dozen people and injuring hundreds.

The turmoil could also put more pressure on Saudi Arabia's crown prince and de facto leader, Mohammed bin Salman, as he works to ensure his multi-trillion dollar plan to diversify the economy goes smoothly.

In the past month, Saudi Arabia has been forced to postpone or cancel a number of events, including the International Investment Forum and the AFC Asian Cup, which were expected to boost the country's economic development and attract more foreign investment. Saudi Arabia is facing a growing budget deficit, a shrinking economy and a weak stock market.

The youth movement also threatened to attack Saudi infrastructure earlier over the weekend in retaliation for attacks by Saudi-led forces in Yemen.

Since the end of February, when the United States, Israel and Iran went to war, Saudi Aramco has become a semi-fixed target of attacks. But the frequency of attacks has increased in recent months, with youth movements increasing the intensity of their attacks on Saudi transport and infrastructure.

Assets under threat include Aramco's headquarters in Dhahran, the main oil hub at Ras Tanura in the Persian Gulf, and the East-West pipeline that exports crude to the Red Sea. Saudi Aramco said it was looking to expand pipeline capacity and store more oil overseas to increase its resilience and protect against potential supply disruptions.