The conflict between Israel and Hamas might have a “serious” impact on global economic development, World Bank President Jim Yong Kim warned at an investor conference in Saudi Arabia on Tuesday.
“What just happened recently in Israel and Gaza — at the end of the day you put all this together, I think the impact on economic development is even more serious,” Ajay Banga said, adding: “I think we’re at a very dangerous juncture.”
According to Israeli officials, Hamas militants broke into Israel from the Gaza Strip on October 7 and killed at least 1,400 people, predominantly civilians who were shot or burned to death on the first day of the operation.
According to the most recent Israeli government figure, the militants also kidnapped 222 persons, including elderly people and small children.
The hostages include dozens of dual nationals and foreigners.
According to the most recent toll from the Hamas health ministry in Gaza, more than 5,000 Palestinians, mostly civilians, have been killed in retaliatory Israeli bombardments across the Gaza Strip.
Banga was speaking at the annual Future Investment Initiative, dubbed “Davos in the Desert” by many.
According to organizers, over 6,000 attendees have registered for the three-day event, which will feature presentations from global banking CEOs as well as the presidents of South Korea, Kenya, and Rwanda.
Regional conflict fears
The horrifying bloodshed in Israel and Gaza runs counter to Saudi Arabia’s aim of a more stable and wealthy Middle East, which last year reestablished ties with Iran and was in talks to recognize Israel before the conflict erupted.
In recent weeks, Saudi Arabia has condemned violence against civilians in Gaza and reaffirmed its support for the Palestinian cause.
This month, a source familiar with conversations about future normalization with Israel told AFP that the process had been halted.
The war comes midway through Crown Prince Mohammed bin Salman’s Vision 2030 reform drive, which aims to move the world’s largest crude oil exporter away from fossil fuels.
Despite fears of further regional unrest, Saudi officials have indicated that they want to press ahead with their reform plans.
In addition to FII, the city is hosting its inaugural fashion week as well as a boxing event between Tyson Fury and Francis Ngannou this week.
On Monday, Prince Mohammed announced plans to host the first eSports World Cup next summer.
Malakai Bayoh, a Britain’s Got Talent contestant, sang at the FII opening ceremony while a big dove flashed on a screen behind him.
Yasir al-Rumayyan, governor of the Saudi Public Investment Fund, only made a passing reference to the Israel-Hamas conflict in his remarks on Tuesday, though he did warn about the challenges posed by high interest rates.
“As central banks have tightened monetary policy in an effort to slow inflation, business and governments around the world have been adjusting to this new reality. This has been the fastest rate increase since the early 1980s and has caused significant and unpredictable disruptions,” he said.
Yet he voiced optimism that “even in a high interest rate environment we can see the acceleration of growth and productivity”.