IMF Praises Saudi Economy for Resilience in Face of Middle East War

The International Monetary Fund (IMF) has assessed Saudi Arabia's economy as resilient despite the ongoing war in the Middle East. The IMF stated that the Gulf kingdom's strong macroeconomic fundamentals and diversified oil and logistics infrastructure have helped it weather the conflict.

US and Israeli strikes on Iran, followed by retaliatory attacks on Saudi and its neighbors, have disrupted shipping through the Hormuz Strait, a critical waterway for oil exports. The IMF warned that continued disruptions could weaken confidence, curtail trade, and weigh on growth and diversification.

Saudi Arabia has been working to diversify its economy through Crown Prince Mohammed bin Salman's Vision 2030 reforms. Despite scaling back some of the plan's more extravagant projects due to cost-saving measures, the IMF noted that Vision 2030 had strengthened the non-oil economy and expanded the role of the private sector.