Houthi attacks threaten Saudi Arabia’s Riyadh regional leadership and economic ambitions

Attacks raise security concerns

The Houthis struck the headquarters of state-owned oil company Aramco in Dhahran on Tuesday, then said they would keep targeting Saudi airports and oil facilities. A cruise missile was intercepted over the Medina region on Thursday, though it was unclear who had launched it.

Economic plans face pressure

Saudi Arabia’s Future Investment Initiative, a summit that typically brings foreign leaders and business figures to the kingdom, planned to allow remote attendance rather than host participants in person. The security uncertainty may also affect tourists and investors considering travel to the country.

Launched a decade ago, Vision 2030 aims to reduce Saudi Arabia’s reliance on oil and reshape its economy and society. Simon Wolfgang Fuchs, a professor at the Hebrew University of Jerusalem, said the attacks threaten the resources and ambitions behind that transformation.

Leadership and conflict context

Saudi Arabia presents itself as a regional leader and custodian of Islam’s holy sites in Mecca and Medina. Timothy E. Kaldas of the Tahrir Institute for Middle East Policy said the hostilities challenge Riyadh’s image of stability and security.

The current escalation comes amid a wider conflict involving the United States, Israel and Iran. Saudi Arabia backs Yemen’s government against the Houthis and has carried out airstrikes in areas held by the group; it supported the government in the war from 2015 to 2022.

Allies offer limited support

Saudi Arabia, Turkey and Pakistan signed the Mecca Joint Defense Agreement in August. Turkey and Pakistan have since offered intelligence and defense support, while saying they would not send troops to Yemen.

France and the United Kingdom have also offered limited defense support, and Egypt has voiced verbal backing. Senior analyst Pauline Raabe said Riyadh urgently needs to protect its population while limiting economic harm and reputational costs.