Mideast war may harm foreign investment in wider region says IMF
The war between Israel and Hamas is adding more tension in a world already riled with unrest, according to the head of the International Monetary Fund.
“What we see is more jitters in what has already been an anxious world,” IMF Managing Director Kristalina Georgieva said at the Future Investment Initiative summit in Riyadh. “On a horizon that had plenty of clouds, one more and it can get deeper.”
Georgieva was speaking on the second day of the event, where the Who’s Who of the world of finance have gathered, despite growing tensions between Israel and Hamas, which is designated a terrorist group by the US and Europe. The war could end up hurting neighboring countries including Egypt, Lebanon and Jordan by impacting tourism and deterring investors, she said.
Later on Wednesday, Saudi Finance Minister Mohammed Al-Jadaan and Affinity Chief Executive Officer Jared Kushner are due to speak, as well as Rivian boss RJ Scaringe and Jim DeMare, head of BofA’s global markets division.
Al-Jadaan Says Fragmentation Hurts Economic Growth
The risk of economic fragmentation in the Middle East and beyond is negative for everyone, according to Saudi Arabia’s Finance Minister Mohammed Al-Jadaan.
“We have witnessed fragmentation for some time now,” he said, “with trade restrictions and what is called friend-shoring, the more trade restrictions, the more low-income countries suffer.”
There is a need to work closely with other countries and multi-lateral institutions such as the IMF to prevent fragmentation because without this kind of collaboration, “it is going to be a very difficult world,” the minister said.
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