Houthi attacks on Saudi Arabia are having only a “limited” economic impact on the kingdom so far, owing to robust domestic demand, the IMF’s regional director tells AFP, though geopolitical uncertainty remains a threat.

The world’s largest oil exporter, Saudi Arabia, has had its crude shipments squeezed by Iran’s blockade of the Strait of Hormuz and the Houthis’ declaration of a maritime blockade.

But shipments continue to move despite the conflicts, Jihad Azour told AFP.

The Gulf kingdom also has “strong internal demand and a robust public sector, so the impact is limited”, he said of the Houthi attacks.

In its regional report released on Thursday, the IMF said that every Gulf state bar Oman had suffered reductions in its hydrocarbon production.

The economy of the region as a whole is expected to shrink 4.8 per cent in 2026.

Still, the IMF expects a strong rebound of around 9.1pc growth next year, albeit with deep uncertainty amid the ongoing geopolitical tensions and stalled diplomacy between Washington and Tehran.