The Scoop
Riyadh has emerged as a key exit route for the super-rich and senior executives stranded in the Gulf looking for a safe passage out of the region.
Cities including Abu Dhabi and Dubai have become playgrounds for the wealthy over the past few years, attracted by the year-round sunshine, tax-free lifestyle, and perception of safety. That was shattered over the weekend as Iranian missiles and drones rained down on the two cities, along with Qatar and Bahrain, causing those that could to attempt to flee.
The Saudi capital’s airport is one of the few still operating in the region, forcing executives and their families stranded in other parts of the Gulf to take the long drive in order to catch private jets or commercial planes.
Private security companies have been booking fleets of SUVs to ferry people on the 10-hour drive to Riyadh from Dubai and then charter private planes to take them out of the region, according to people familiar with the matter. They have been evacuating a mix of people, including senior executives at global finance firms and high-net worth individuals in the region for business or holidays, the people said. The rush in demand is sending prices for private jets and SUVs soaring, these people said.
“Saudi Arabia is the only real option for people who want to get out of the region right now,” said Ameerh Naran, chief executive of private jet brokerage Vimana Private; private jets from Riyadh to Europe now cost up to $350,000, he said.
As the conflict began to hit Dubai on Saturday night, security firms looked to use Oman as a route out of the region, but that route closed after Iran hit the port and an oil tanker in the country on Sunday. That left Riyadh as the safest route.
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Riyadh’s emergence as a relatively safe spot in the region is a turnaround for the city, which has previously carried a higher risk perception than its neighbors. In prior years, regular rocket attacks by the Houthi militia in Yemen caused frequent closures of airspace. And in previous moments of crises or regional instability, like the Arab Spring or last year’s 12-day war between the US and Iran, the well heeled have typically traveled through other cities. Before that, strict religious rules and the legacy of terror attacks in the early 2000s gave a perception that the kingdom was unsafe.
But with few other options available, Riyadh has seen perceptions change.
“We’ve been approached by a mixture of clients including families, individuals, and corporations that want to get out of the region either because their fear for their safety, or for business reasons they just need to be able to travel,” said Ian McCaul, operations and future plans director at UK-based security firm Alma Risk.
The use of Riyadh as a transit destination has also arisen because the country has loosened visa rules. Many nationalities can now get a visa on arrival, whereas just a few years ago it was necessary to arrange visas in advance, which could take weeks.
It’s also a reflection that Riyadh has so far managed to escape the brunt of Iranian attacks, allowing it to keep airspace open. Why Iran has spared Saudi Arabia a more significant barrage is unclear. Crown Prince Mohammed bin Salman had earlier sought to avoid becoming embroiled in the conflict by saying he wouldn’t allow the kingdom’s airspace or land to be used for an attack on Iran.
Life in Riyadh, meanwhile, has largely continued as normal even as other cities in the region have been bombarded by Iranian rockets and drones. While some expatriate schools have turned to online classes and companies including the Public Investment Fund have advised at least some staff to work from home, many have continued as usual.
Notable
- Hedge funds and banks in the UAE have been forced into contingency planning after the Iranian strikes on the country, Bloomberg reports.