‘Business as usual’ as Saudi Arabia braces for further attacks

• Schools and businesses operational
• Domestic flights unabated
• Saudi Exchange open for trading

Schools and businesses stayed open in Saudi Arabia on Monday despite Iranian missile strikes hitting countries across the region. 

Many companies have told employees to work from home as attacks from Iran showed no sign of halting. Workers at a number of firms, who asked not to be identified, told AGBI they had been instructed to come to the office only if needed.

For many others, the week goes on as usual. Traffic returned to the streets and the Riyadh Metro was full of passengers braving the rush-hour commute.

“Here in Saudi, and Riyadh specifically, it does feel business as usual,” said Justin, a consultant working in sports and events, who did not give his full name. He said he still had a “full day of meetings” planned for Monday.

He lives abroad but regularly flies in and out of Riyadh, as do many of his colleagues. His biggest concern is for those living in neighbouring Gulf cities such as Dubai and Abu Dhabi who work in Riyadh from Sunday to Thursday.

Airports opened in Saudi Arabia on Sunday, although a number of flights were suspended. Saudia extended its moratorium on flights to a range of destinations including other countries in the GCC until Wednesday.

In the neighbouring UAE, Dubai’s two international airports remain closed “until further notice”.

“I think most people are wondering, ‘How long is the unrest going to last?’” Justin said.

Domestic flights in Saudi Arabia continued unabated, while international flights took off from the capital to destinations across Europe, Asia and Africa.

“Riyadh is fine,” said Vivian, who works for a private equity company with offices in the King Abdullah Financial District and also did not give her full name. “Yesterday, we were told we could work from home, but today [Sunday] they told us to come to the office.”

The capital’s business centre, which houses the Public Investment Fund and state oil company Saudi Aramco, as well as restaurants and cafés, was back to normal on Sunday evening.

“It’s super-crowded over there,” Vivian said. “Everyone was just out having dinner.”

While Kuwait’s stock exchange remained shuttered on Sunday, citing the “exceptional circumstances” in the region, the Saudi Exchange opened in the morning.
“It’s good for investor confidence that they did it,” Shahrukh Saleem, a portfolio analyst at asset manager Mashreq Capital, said in reference to the Saudi bourse.

The Tadawul All-Shares Index, which tracks the main market of the Saudi Exchange, closed down 2.2 percent on Sunday compared with Thursday’s finish.

Shares in Aramco increased 3.4 percent in anticipation of higher oil prices following Iranian threats towards shipping in the Strait of Hormuz, and the weekend decision by Opec+ to raise oil production quotas.

The market move “was rather contained, which is encouraging”, Saleem said. “So far, investors are not that concerned, even though war is really raging across the region.” 

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The Foreign Ministry, in a statement, confirmed salvos fired at Riyadh and the Eastern Province on Saturday. The country summoned the Iranian ambassador in Riyadh in response, denouncing “the blatant Iranian attacks against the Kingdom of Saudi Arabia and several neighboring countries”.

Iranian attacks continued throughout Sunday. AFP reported that Saudi Arabia intercepted at least one attack, fired at the Prince Sultan Air Base, which hosts US military personnel, 150km south of Riyadh.

Despite a couple of cancellations, iftars and suhoors, late-night gatherings held in the month of Ramadan, took place as usual in Riyadh on Sunday, according to people who shared their event plans with AGBI.

“It’s business as usual,” said Mark, a recruitment consultant who spent Sunday night at an iftar with more than 100 attendees. “We’re all talking about the situation, but going on as normal.”