Wall Street Journal: The Yemen War Drains the Saudi Economy and the Stockpile of Interceptor Missiles Is Running Out

Follow-ups — Al-Khabar Al-Yemeni:

The American newspaper “The Wall Street Journal” revealed on Monday that the costs of the war have led to the widening of the budget deficit in Saudi Arabia, and threaten to push the economy into contraction, at a time when Riyadh faces increasing military pressures, as parts of the capital have become “akin to a battlefield.”

The newspaper quoted Saudi officials as saying that “the stockpiles of interceptor missiles needed to counter additional attacks have begun to run out,” noting that “the increase in defense spending and infrastructure costs threaten to drain the funds needed to diversify the Saudi economy.”

It explained that “the halt of a number of projects launched by the Crown Prince, and Riyadh’s abandonment of plans to host the 2029 Asian Winter Games,” in an indication of the depth of the economic crisis sweeping the Kingdom.

The “Fitch” Ratings agency had revealed that the preliminary statement of the Saudi budget for the year 2027 shows acute financial pressures, with expectations of rising spending and widening deficit, warning that the disruptions in oil revenues constitute the greatest risk to the financial forecasts of the Kingdom, which expects a contraction of the gross domestic product by 3.6% in 2026.