Gulf Economies, Torn by War in Iran, Desperately Need a Return to Normal
Riyadh Air, Saudi Arabia’s aspiring luxury carrier, is busing international passengers to and from an alternate airport four and a half hours from its hub, which was damaged in strikes.The marquee Saudi investment conference has been postponed to next year.The headquarters of the state-owned oil giant Saudi Aramco were struck, as was a critical pipeline.Ships running the gantlet in the vital Strait of Hormuz are still in Iran’s cross hairs and catching fire from missile and drone attacks.
It is a particularly tense time right now, with a heightened risk of escalation of the war.Throughout the Persian Gulf, the war in Iran, now at the start of its ninth month, and the conflict that has erupted in Yemen are taxing the region’s ability to conduct business as normal.This week could bring a fresh test.The energy conference ADIPEC, featuring executives and government ministers from around the world, began in Abu Dhabi on Monday.
At least one prominent industry leader, Darren Woods, the chief executive of Exxon Mobil, decided not to attend because of security concerns in the region, according to a person familiar with his thinking who was not authorized to speak to the media.The event’s organizers said in a statement that “high-level participation is very strong” but did not comment on the reasons for Mr.Woods’s withdrawal.Economic growth across the Gulf Cooperation Council, a regional bloc of Arab states, will tumble by 5 percent this year, according to the International Monetary Fund.
Kuwait, Bahrain and Qatar are expected to suffer double-digit contractions, linked to their near-total dependence on the besieged Strait of Hormuz to sell their energy products to the world.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patie...