Saudi Arabia Freezes New Western Consultant Contracts Despite $24.7 Billion Oil Revenue Surge
Updated
Updated · Middle East Eye · May 21
Saudi Arabia Freezes New Western Consultant Contracts Despite $24.7 Billion Oil Revenue Surge
4 articles · Updated · Middle East Eye · May 21
$24.7 billion in March oil export revenue — the highest since October 2022 — has not stopped Saudi Arabia from halting new contracts for western consultants and delaying some invoice payments until end-June, according to the report.
The freeze followed the US-Israeli war on Iran, but the pullback also reflects deeper budget strain: Saudi Arabia still ran a $33.5 billion first-quarter deficit as government spending rose 20% and military outlays jumped 26%.
Saudi Arabia has cushioned the war's export disruption better than most Gulf peers by routing crude through its East-West Pipeline to Yanbu, keeping exports at about 70% of pre-war levels while Brent trades roughly 50% above pre-war prices.
The consultancy squeeze fits a broader retreat from costly Vision 2030 megaprojects as weak investor appetite and high costs force a pivot toward logistics, mining, tech and AI; Neom was omitted from the kingdom's 2026 pre-budget statement.
Why is the world’s biggest consulting client suddenly refusing to pay its bills?
Is the Iran war forcing Saudi Arabia to abandon its futuristic mega-projects?