Economist Criticizes Saudi Escalation
The Economic Expert Report by Salim Al-Jaadabi clarifies that the Saudi escalation towards Yemen and the tensions in the Red Sea are harming the Saudi economy, particularly through increased costs of maritime and air transport, higher insurance premiums, and reduced oil and trade flows. These developments threaten the Kingdom's oil revenues and exacerbate the budget deficit. The report also confirms that damages include diminished profits for Aramco, decreased liquidity, and rising costs for defense and security of ports and oil facilities, as well as disruptions in the aviation sector, which the Kingdom relies on heavily. The report relies on economic indicators showing that continued escalation could lead to ongoing deterioration of the Kingdom’s financial situation, increased reliance on borrowing, rising energy prices, and a threat to major energy sources. Overall, it reflects that current tensions could ultimately harm the Kingdom’s long-term economic interests.
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