Local businesses’ fear of potential retreating government expenditure earned a spotlight from the Financial Times, with Saudi entrepreneurs are concerned about the potential impact of falling oil prices on contracts.

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Businesses could face changes in government contract awards, including delays or cancellations, as well as shifts in bank lending and the cost of capital, Senior Research Scholar at Columbia University Karen Young told the FT.

“If oil prices drop further they will stop using us,” an unnamed tech entrepreneur told the financial publication. “We have diversified our revenue streams to mitigate that risk.”

Oil prices faced a similar slump between 2014 and 2016, causing payment delays to government contractors and long-term damage to many local businesses, the newswire claimed.

Local businesses follow the gov’t lead: “We are still seeing people spending money,” the news outlet echoed a cautious optimism from a foreign executive who runs a restaurant chain across the Kingdom. However, he said that he will keep monitoring fluctuations in the supply chain, which might affect revenues.

The salmon-colored paper voiced the positive effects of Vision 2030 since its launch in 2016, which saw non-oil exports reach an all-time high in 2024. However, challenges remain, as oil prices pierced the USD 60 bbl / d to hit a four-year low, pushing government departments to review their spending priorities.

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