Saudi Arabia's Paradoxical Balancing Act Falters Amid Yemen War and Oil Market Challenges

Saudi Arabia is caught in a paradoxical balance between its ambitious economic and social transformation under Crown Prince Mohammed bin Salman and the challenges it faces, including the war in Yemen, tensions with Iran, and the oil market. The kingdom's vast size and population of 36 million residents, half of whom are foreign nationals, make it a complex entity to navigate.

During a recent journey from the Asir region on the Yemeni border to Haql, near Eilat, our team observed the tension between the past and the vision for the future. We witnessed remote communities struggling with providing livelihoods for a growing population, managing oil and gas flows, and transforming the landscape into engines of growth.

The Houthis' threat to Red Sea trade routes has escalated in recent weeks, striking the oil pipeline that bypasses the Iranian blockade at the Strait of Hormuz. This has brought Saudi Arabia's advanced digital dream to a halt. The Houthis are backed by Iran and aim to show control over the Red Sea.

We visited Abha, the capital of the southern Asir province, where we saw well-paved roads, electricity, and mobile reception. However, there is no oil or camels in the Asir Mountains, which are watered by monsoon rains. The region's unique architecture features tower houses with small windows and black slate stones adorning the walls to divert rainwater.