Saudi Economy Chalks Up 'Robust' Growth As MbS Sits Out Of Regional Conflicts

Despite regional conflicts in Gaza and the Red Sea, Saudi Arabia's economy has performed strongly due to its efforts to distance itself from tensions. The IMF reports "robust" non-oil economic growth and a strong banking system. Saudi Arabia's oil exports are not impacted by Houthi attacks, and tourism remains strong. The kingdom has avoided involvement in conflicts, opting for diplomacy and economic growth as part of Vision 2030. The program has led to low unemployment and non-oil GDP growth of 3.8% in 2023. However, some mega-projects have been recalibrated, including the ambitious Neom megacity. Saudi Arabia's budget depends on oil revenue, estimated at $96 per barrel to balance its budget, and the IMF predicts a decline in oil revenue.