Saudi Arabia Halts Payments To Western Consulting Firms
Saudi Arabia has stopped issuing new contracts for western consulting firms and delayed some payments in a bid to reduce a growing budget deficit and ramp up defense spending amid the closure of the Strait of Hormuz and US-Israeli war on Iran, the Financial Times (FT) reported on 21 May.
Riyadh made the decision after the eruption of the war on 28 February, which saw Iran effectively close Hormuz to US- and Israeli-linked vessels, threatening Saudi oil exports and revenues, according to executives at consultancies.