‘Saudi economy resilient’

Published June 4, 2026 Updated June 4, 2026 07:04am

RIYADH: Saudi Arabia’s economy has shown resilience in the face of headwinds triggered by the Middle East war thanks in part to energy and logistics infrastructure that bypasses the Strait of Hormuz, the IMF said on Wednesday.

The Gulf has borne much of the brunt of the war since it began with a wave of US-Israeli attacks on Iran on February 28.

Iran responded by choking off traffic in the Strait of Hormuz, which is vital to the region’s energy exports.

“The Saudi economy is proving resilient in the face of the war in the Middle East thanks to strong fundamentals and diversified logistical and oil infrastructure,” the International Monetary Fund said in a report.

“The war has nonetheless disrupted its momentum, curtailing oil exports and weighing on non-oil activity and confidence.” The Saudi economy has been buoyed by its ability to re-route oil via its massive East-West pipeline, which allows for millions of barrels of crude to be delivered daily to export terminals on its Red Sea coastline.

“A prompt rerouting of oil through the East-West pipeline and Red Sea ports, combined with Aramco’s overseas inventories, has helped limit the drop in oil deliveries,” the IMF said.

Published in Dawn, June 4th, 2026

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