Saudi Arabia
Recession Hits Saudi Oil Sector
A visitor to the kingdom might be startled to hear Saudis speak of a “recession” here. Non-oil growth of the gross domestic product (GDP) is proceeding at a 6 percent clip. Unemployment is nil and construction sites still appear to be eating up the desert around every major city. It hardly looks like a recession. Nevertheless, a leaner economic climate is unmistakable. Saudi and foreign contractors alike complain of a slowdown in government payments that leaves them short of cash. The private sector is pruning payrolls and expenses, and layoffs are underway at two of the country’s largest employers, Aramco and the national airline, Saudia. Demand for many key goods and services has stabilized, leaving traders in the lurch.
Saudi Arabia and the War in Lebanon
People here responded to the Israeli invasion of Lebanon in a typically quiet fashion. In my day-to-day business contacts with Saudis, the subject of the war rarely came up unless I raised it. One Saudi friend commented, “We don’t yell and shout, but when we’re among ourselves we talk about it and we say that something has to be done about US support for Israel.”
The scene in any one of the country’s Lebanese shops or restaurants was quite different. Radios blared in the background as men argued loudly over the latest reports and rumors. No doubt some Saudis also viewed the war through Palestinian and Lebanese expatriates, although this community has nowhere near the social and political influence it has in Kuwait.
