Saudi Arabia faced a serious security and economic crisis due to the recent intensified attacks by the Iran-backed Houthis in Yemen.
According to The Wall Street Journal (WSJ), Crown Prince Mohammed bin Salman's economic transformation program, which aims to reduce dependence on oil revenues, faces new risks due to increased military spending and attacks on critical infrastructure.
This advantage of Saudi Arabia, which was able to continue its energy exports thanks to the oil pipeline that disabled the Strait of Hormuz after the start of the war with Iran, began to weaken with the attacks of the Houthis.
At least 12 people died and more than 300 people were injured in the Houthis' missile attack on King Khalid International Airport in Riyadh on Saturday, October 10.
While two terminals of the airport were damaged in the attack, some parts of their roofs collapsed. It was reported that among the injured there were those who lost their limbs.
The airport was targeted again on Sunday, October 11. In the last attack, one person died and 11 people were injured.
The Houthis warned that they may continue to target airports in Saudi Arabia.
The Houthis ALSO TARGETED OIL SHIPMENTS
Saudi Arabia's energy infrastructure was also affected by the attacks.
In the first months of the year, the Riyadh administration, which used the East-West pipeline that carries oil from the east of the country to the Red Sea coast in order to overcome Iran's pressure on the Strait of Hormuz, was able to continue its exports thanks to this route.
However, the Houthis' declaration of a naval blockade against Saudi Arabia in July and the attack on the East-West pipeline in September made the security of this alternative route controversial.
Attacks on oil refineries, pipelines and airports have put pressure on the country's energy exports, as well as trade and tourism activities.
The economic transformation program that Crown Prince Mohammed bin Salman has been trying to implement in the last 10 years aims to grow Saudi Arabia in non-oil sectors.
In this context, high-cost investments such as the futuristic city of Neom, the Mukaab project designed in the form of a giant cube in Riyadh, and the ski resort planned to be established in the desert were on the agenda.
However, projects with total costs reaching trillions of dollars pose an increasing burden on the annual public budget of approximately $350 billion.
According to WSJ, a significant portion of the projects have been stopped or re-evaluated.
While Saudi Arabia abandoned its plan to host the 2029 Asian Winter Games in January, the problem of providing the necessary financing for the 2030 World Fair and the 2034 FIFA World Cup remains on the agenda.
EXPECTATION OF 3.6 PERCENT CONTRACTION IN THE ECONOMY
The economic effects of the war were also reflected in Saudi Arabia's growth expectations.
According to Capital Economics' data, the size of non-oil economic activities in the country decreased in the second quarter of the year compared to the first quarter.
The Saudi Arabian Ministry of Finance expects the economy to shrink by 3.6 percent in 2026.
While there was a decline in foreign investments in the first two quarters of the year, investment inflows fell behind the targets set by the Crown Prince for 2030.
The increase in defense expenditures and repair costs of damaged infrastructure brought with it the risk of diverting resources planned to be allocated to economic transformation projects to other areas.
The country's goal of becoming an important center for global artificial intelligence investments has also encountered new uncertainties as data centers have become among possible attack targets.
MILITARY INTERVENTION MESSAGE FROM TRUMP
In his statement over the weekend, US President Donald Trump stated that Washington was in contact with the Houthis and said that the US could participate in military operations organized by Saudi Arabia.
Regarding the airport attack, Trump said, "What they did was very bad."
However, according to officials speaking to WSJ, the Washington administration has not yet accepted Saudi Arabia's requests for direct military aid to stop the Houthis' advance.
It was stated that the USA sent military advisors to the region, but was cautious about launching a large-scale operation against the Houthis.
Saudi Arabia's air defense capacity is also under pressure in the face of increasing missile attacks.
According to officials, while the Riyadh administration is experiencing a decrease in its stock of interceptor missiles used to prevent new attacks, it is shifting existing defense systems to different regions to protect critical points such as palaces and energy facilities.
It was claimed that Saudi Arabia asked for help from its military ally Pakistan and searched for new air defense systems in international markets.
It was also claimed that the Riyadh administration was considering the use of foreign fighters to support allied forces in Yemen.
According to sources speaking to WSJ, Mohammed bin Salman supports the continuation of economic pressure on Iran and wants diplomatic communication channels to be kept open with Tehran.
