Yemen’s Houthis have a big request for Saudi Arabia as the war between the two sides escalates: $51 billion.
Houthis are asking $51 billion from Saudi Arabia to end war
According to the WSJ, when Saudi Arabia asked the group what it would take to end the war, it put its price at $51 billion. The group also wants the kingdom to recognize it as Yemen’s legitimate government, a move that would require Saudi Arabia to abandon the internationally recognized government.
Houthis maintain that the amount is adequate to compensate it for the years it has imposed a blockade on it.
In theory, Saudi Arabia could decide to ignore these demands and keep fighting. Besides, it spends billions of dollars a year on defense and has a bigger military. It is also allied with the United States, the biggest superpower in the world.
In reality, however, there is a possibility that Saudi Arabia will be forced to pay the group, which has already taken large parts of Yemen. If it refuses to pay, it means that the Houthis will do more damage to the kingdom.
Just recently, the group forced it to shut its airport for a while following a massive attack that killed at least 18 people and injured many more. The group has also launched attacks against key Saudi Arabian oil infrastructure like refineries and pipelines.
Most importantly, the Houthis have billions of dollars’ worth of targets within reach. They could strike the kingdom’s data centers, skyscrapers, and manufacturing plants. They could also severely damage Saudi Arabia’s oil infrastructure, which is the backbone of its economy. In a statement, Kristian Coates, a top analyst, said that:
“The imbalance of risk between the Houthis and Saudi Arabia is even greater now than it was in the earlier period of conflict between 2015 and 2022, as the impact of the strikes on civilian and energy infrastructure undermines investor confidence.
In that statement, the analyst argued that Houthis have nothing to lose if Saudi Arabia intensifies its attacks against Yemen. They don’t have vast data centers, oil infrastructure, and other projects.
Saudi Arabia economy is facing major headwinds
At the same time, there is a risk that a weakened Donald Trump will decide to launch strikes against Iran to force its leaders to capitulate.
Iran has warned that it will punish the US’s Gulf allies if this happens. Saudi Arabia is the most vulnerable because it is also battling the Houthis.
Crucially, Iran’s capabilities are more advanced than those of the Houthis, meaning it could do far more damage to the kingdom.
Failing to pay the $51 billion means that Houthis will continue attacking and disrupting the kingdom’s business. These attacks pushed it to postpone the annual investment forum, where hundreds of officials from around the world attend.
Saudi Arabia has also been forced to abandon some of its most ambitious projects, including Neom. Lucid, an American electric vehicle company it backs, has crashed and is at risk of running out of money. LIV Golf is also in the process of filing for bankruptcy.
And the risks don’t end there. If Saudi Arabia pays the $51 billion, it will leave them exposed to blackmail in the future.
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