The escalation of tensions between Saudi Arabia and the US over the disappearance of Saudi journalist Jamal Khashoggi is likely to weigh on local financial markets, but the Kingdom is in a strong financial position to withstand the economic impact of possible sanctions. That said, the latest developments will damage Saudi Arabia’s nascent reputation for reform and undermine longer-term economic prospects.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services