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Saudi Arabia cuts $200m in Met Opera House funding due to Iran war: Report
https://www.middleeasteye.net/countries/saudi-arabia">Saudi Arabia has pulled out of a $200m deal to support New York City’s Metropolitan Opera House due to economic hits it has suffered from the https://www.middleeasteye.net/topics/war-on-iran">US-Israeli war on Iran, The New York Times reported on Friday.
While $200m is a relatively small sum compared to Saudi Arabia’s vast $1 trillion sovereign wealth fund, the decision is notable as the first sign that the war on Iran is denting Gulf financial commitments in the West.
Peter Gelb, the Met Opera's general manager, told the NYT that the kingdom said its decision was based on damage to the country’s economy caused by the Iran war and the blockade of oil passing through the Strait of Hormuz.
“They are only doing the projects that are essential,” Gelb told the NYT, recalling his conversation with Saudi officials.
The Met financing deal “falls outside what is essential”, he added.
The storied Met Opera turned to Saudi Arabia in September 2025 for a financial lifeline.
At the time, it had drawn down more than a third of the money in its endowment fund - about $120m - to fund operations.
The Saudi Arabians agreed to support the Met, and in return, the opera house agreed to a long-term pledge of conducting performances in the kingdom for three weeks during winter.
Saudi Arabia has ploughed billions of dollars into sports, arts and entertainment in a bid to diversify its economy beyond oil revenue.
Economic consequences
Tourism in the Gulf has dried up as a result of the US-Israeli war on Iran.
Earlier this month, Dubai's famous Burj Al Arab hotel announced it would close for 18 months for refurbishment, following a drop in tourism.
The UAE has been the main beneficiary of a tourism boom in the Gulf in recent years, while Saudi Arabia has been trying to carve out its own niche.
One of the kingdom’s other bets has also fallen by the wayside amid the war on Iran.
The Financial Times revealed in April that https://www.middleeasteye.net/countries/saudi-arabia">Saudi Arabia’s Public Investment Fund (PIF) is on the cusp of cutting its backing for LIV Golf, the entity it supported with a $5bn investment to rival the PGA Tour.
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The kingdom was scaling back its more grandiose investments even before the war.
In December, Saudi Arabian Finance Minister Mohammed al-Jadaan said that Riyadh had “no ego” that would prevent it from reassessing projects.
Earlier this year, Saudi Arabia suspended construction of the Mukaab, a giant cube-shaped structure set to be built in downtown Riyadh.
The kingdom also shelved plans to build a desert ski resort and a large dam for an artificial lake.
Because of its https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.middleeasteye.net/news/swinging-action-saudi-arabian-pipeline-designed-break-bypass-strait-hormuz&ved=2ahUKEwjz84vRx_CTAxXYRPEDHYozLUkQFnoECBsQAQ&usg=AOvVaw1DrkBNy59-OdMPFuF0QJ8x">East-West pipeline running from the Gulf to the Red Sea, Saudi Arabia can bypass Iran's control of the Strait of Hormuz.
It is practically the only Gulf state exporting oil amid the war and is benefiting from higher oil prices.
But the conflict has also made it harder for Gulf states to present themselves as safe hubs for tourism and business.
Yasir al-Rumayyan, the governor of PIF, told Al Arabiya Business on Wednesday that the war on Iran was having an effect on PIF’s calculus, saying “the war would add more pressure to reposition some priorities”.
Rumayyan confirmed for the first time that a https://www.middleeasteye.net/news/saudi-arabia-the-line-neom-megacity">170km straight-line city envisioned to be part of the larger Neom development in Saudi Arabia was no longer a priority.