Houthi attacks on Saudi strategic assets threaten regional leadership and Riyadh's economic ambitions

As Yemen's Iran-backed Houthis continue to target Saudi Arabia, Riyadh's vulnerability threatens its claim to regional and religious leadership as well as its status as an economic power.

Saudi Arabia: Houthi attacks threaten Riyadh's regional leadership

16/10/2026 16 October 2026 As Yemen's Iran-backed Houthis continue to target Saudi Arabia, Riyadh's vulnerability threatens its claim to regional and religious leadership — as well as its status as an economic power.

As the conflict between Saudi Arabia and Iran-backed Houthi militias in Yemen continues to escalate, Saudi Arabia's most important national priorities are increasingly at risk. On Tuesday, the Houthis targeted the headquarters of Saudi Arabia's state oil company Aramco in Dhahran. On Wednesday, the Houthis vowed to continue their attacks on Saudi airports and oil facilities, and on Thursday a cruise missile was destroyed over the Medina region. While it is unclear who launched it, the attempt raises questions about Saudi Arabia's role as the custodian of Islam's holiest sites, the Saudi Arabian cities of Mecca and Medina.

After last weekend's Houthi attacks that killed more than a dozen people and injured more than 300 at Riyadh's King Khalid International Airport, tourists and potential investors are acutely aware of the growing uncertainty about travel and security in the Kingdom.

According to media reports published earlier this week, several airlines suspended flights to Riyadh, and the airport was expected to remain closed until at least October 17. Saudi Arabia's Future Investment Initiative, an economic summit that typically brings foreign leaders and key players in business to the country, plans to offer remote participation instead of hosting on-site participants.

Timothy E. "The hostilities between the Houthis and the Saudi government challenge Riyadh's image of stability and security amid the wider US-Iran war," said Kaldas, Washington-based Tahrir Institute think tank's vice president for Middle East policy.

"Attacks on Saudi Arabia also threaten Riyadh's efforts to diversify its economy," Caldas told DW.

Since the US and Israel launched attacks on Iran in February, Tehran and later the Iran-aligned Houthis in Yemen have targeted Saudi Arabia, a close US ally. Saudi Arabia also supports the Yemeni government in the fight against the Houthis by airstrikes on areas controlled by the Houthis in Yemen.

Houthi attacks are a blow to the ambitions of Saudi Arabia

A decade ago, Saudi Arabia launched Vision 2030, a sweeping economic and social reform plan to reduce the kingdom's reliance on oil and transform its economy and society.

Simon Wolfgang Fuchs, a professor at the Hebrew University of Jerusalem, told Deutsche Welle: Saudi Arabia pursues a highly nationalistic "Saudi-first" policy, which aims to push the country to the forefront of the world as an aviation power, artificial intelligence center and a major tourist destination.

I consider the focus of the Houthi attacks to be an important blow to these ambitions and the financial resources available to pursue them.

Pauline Rabe, senior analyst at the Berlin-based think tank Middle East Minds, notes that Saudi Arabia urgently needs to find a solution that simultaneously limits economic damage and credit costs to protect its people from conflict.

"It is a race against time, although the conflict between Saudi Arabia and the Houthis is not new," he told DW. Saudi Arabia supported the Yemeni government in the war against the Houthis between 2015 and 2022.

Rabi said: "The conflict has flared up again due to the general situation in the Persian Gulf, and in this way, it is actually an escalation of the existing situation.

However, he sees the loss of Saudi Arabia's authority as a threat on the horizon. "In the short term, Saudi Arabia is a belligerent [actor] in a region ravaged by conflict," he said.

Symbolic support from partners like Türkiye, Pakistan, Egypt

He stated that Riyadh remains a key player through its investments, its position as the world's largest oil exporter, and its role as the guardian of Islam's holy places in Mecca and Medina, adding: By virtue of this role, Saudi Arabia can count on allies and demand the formation of alliances.

In August, Saudi Arabia, Türkiye and Pakistan signed an agreement on the joint defense of Mecca. While the latter two have since provided intelligence and defense support to Saudi Arabia, they have also made it clear that they will not put their boots on the ground in Yemen. France and Britain also provided limited defense support to Riyadh. Egypt, the most populous Arab country with a Sunni majority like Saudi Arabia, verbally expressed its support.

"Riyadh prioritizes the symbolic value of these countries and projects an image of strong relations with regional powers," Kaldas said.

However, much attention has been focused on Saudi Arabia's failure to provide defense support to the United States, he added. While Saudi Arabia's closest ally, the United States, has shown a willingness to support Riyadh by sharing intelligence and targeting aid against the Houthis, Washington has so far refused to commit American forces to direct strikes. Therefore, for Saudi Arabia, the understanding is that the US prioritizes avoiding opening another front in the regional conflict against Iran.

Saudi Arabia is on the back foot in the war with the Houthis

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Jennifer Holleis is an editor and political analyst specializing in the Middle East and North Africa.