The deadly missile attack by Houthi rebels on Riyadh’s international airport last week “exposed vulnerabilities in the kingdom’s defences that have heaped pressure on the Saudi royal family”, said The Observer. Thirteen people were killed and hundreds injured in an assault on the heart of Saudi power that “shattered the kingdom’s effort to establish its reputation as a secure global investment hub” and “diversify away from a dependence on oil”.
What did the commentators say? Crown Prince Mohammed bin Salman’s bold Saudi Vision 2030 aims to turn his oil-rich country into a hub for tourism, international events and multinational enterprises. Iran’s attacks on US allies in the Gulf had already “dealt a blow” to that plan, said Agence France-Presse. With Houthi attacks on Saudi soil, it “now faces an existential hurdle”.
The attacks have already resulted in the cancellation of a series of major events and summits, most notably the Future Investment Initiative, nicknamed “Davos in the desert”, which forms the centrepiece of the Saudi diversification drive. The kingdom’s scheduled hosting of football’s Asian Cup in January and February is also “being questioned”, said Rob Draper in The Guardian.
Recent events “highlight the profound dilemma” facing the crown prince, “who must juggle immediate security imperatives and long-term economic interests”, said The Washington Post. “For Saudi Arabia’s economic transformation to succeed, it needs to welcome global talent, investment and tourists.” But “you can’t do that when people can’t land in your country safely,” said Kristen Smith Diwan from the Arab Gulf States Institute think tank in Washington.
What next? Even before the US war against Iran began in February, some international investors and Wall Street firms were “questioning whether there was enough money to be made in Saudi Arabia”, said Bloomberg. Analysts now fear “the fallout from the war will hurt the kingdom’s attractiveness” further.
Saudi Arabia “can reduce its exposure” in the short-term “through diplomacy and a serious Yemeni political process”, said Amine Ayoub, from the Middle East Forum think tank, on Ynet Global. “But a ceasefire cannot endure if it leaves the country’s power struggle unresolved.”
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