world-economy

Saudi Economy Posts Steepest Decline Since Pandemic as Regional Tensions Weigh on Oil Sector

Saudi Arabia's economy contracted sharply in the latest quarter, marking the worst performance since 2020 as geopolitical pressures constrain crude exports. The kingdom's vital petroleum industry faces headwinds from escalating regional conflict, with shipping disruptions threatening critical trade corridors. Yemen's Houthi forces have announced expanded blockade measures targeting Middle Eastern maritime routes, including passages near the Suez Canal, complicating logistics for global energy markets. Saudi Arabia is pursuing defense partnerships abroad, including discussions to join international fighter-jet development programs. This effort involves European and Asian allies working on advanced military capabilities. Officials have signaled continued focus on diversifying the nation's economic base beyond oil dependency, though near-term export challenges persist amid regional instability.