Despite the ongoing war between Israel and Hamas in Gaza that has affected the entire region in one way or another, Saudi Arabia’s economy is on the path of development.
Saudi Arabia’s economy has recorded significant progress in recent months despite Israel’s war against Gaza and Houthi attacks in the Red Sea. A new report by the International Monetary Fund (IMF) has revealed that thanks to Saudi Arabia’s efforts to distance itself from regional tensions, especially the ongoing war in Gaza, the kingdom’s economy has been able to continue its growth.
“Geopolitical events in the Middle East have not had any major impact on the Saudi economy so far,” the IMF said in the report, noting also that “Saudi Arabia’s oil exports are not dependent on the Red Sea, where the Houthis target commercial ships, and the tourism boom of Saudi Arabia is also still strong and growing despite the tensions in Gaza.”
Saudi Arabia’s non-oil GDP hit 3.8 percent in 2023, marking a slowdown from 2022 when it reached 5.3 percent, but was still “robust” thanks to strong investment and private consumption.
In general, the International Monetary Fund has painted a promising picture of Saudi Arabia’s economy in its new report with a coherent banking system and strong non-oil economic growth. The report also highlights the divergence between the Gulf economies and poorer countries such as Egypt, Lebanon and Jordan, whose weak economies have been hit hard by Israel’s war in Gaza.
Growing economy at the cost of closing eyes on human rights?!
Saudi Arabia has been more vocal than other countries in putting pressure on Israel to end the invasion on Gaza, terminate the blockade on Palestinians living in the enclave, and take steps towards the creation of a Palestinian state.
To show solidarity with Palestinians, Riyadh has also apparently stopped negotiations to normalize relations with Israel, but the kingdom has refused to take any practical steps to show support for the Palestinians against Israel’s ongoing attacks.
The country has also avoided joining the US military campaign against its former enemy, the Houthis in Yemen. While the group is fighting merchant ships in the Red Sea as a sign of support for Gaza, Saudi Arabia has eased their banking restrictions and resumed flights to Yemen. Though not dissent and honorable, all these decisions and policies made and taken by Saudi leaders have paved the way to protect the country’s economy from any damage despite the Gaza war.
