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.
Saudi Developer to Spend $10 Billion on Diriyah Project
The developer behind an ambitious plan to transform a historic Saudi town into a sprawling tourism destination is set to splash out $10 billion on the project next year.
The $63 billion project at Diriyah, a UNESCO World Heritage site north-west of Riyadh that was the ancestral home of the ruling family, will feature dozens of hotels and thousands of homes. The Diriyah Gate Development Authority spent $7.5 billion last year building out infrastructure at the 14 square-kilometer project, Chief Executive Officer Jerry Inzerillo said in an interview.
Investcorp to Push Ahead With Mideast Investments
Investcorp will remain “very active” in looking at investments in the Middle East despite geopolitical tensions and the Israel-Hamas conflict, according to a top executive at the region’s biggest alternative asset manager.
The Middle East has been one of the “most vibrant and fastest growing” region for investments despite its challenges, Investcorp Holdings co-CEO Hazem Ben-Gacem told Bloomberg TV. He said the firm will continue to focus on student housing, warehouse and logistics, and multifamily homes as they have been “thriving and solid sectors” that provide the right yield to investors.
Saudi Arabia’s Neom Looking to Attract More FDIs
Saudi Arabia’s Neom is looking at bringing more foreign investments help develop Crown Prince Mohammed bin Salman’s flagship megaproject after announcing plans on Tuesday to set up a $10 billion venture with Danish freight forwarder DSV A/S.
Foreign direct investments is “absolutely a major component” of Neom’s plans to help support the kingdom’s economy and drive innovations in different directions, Chief Investment Officer Manar Al Moneef told Bloomberg TV at the Saudi Future Investment Initiative summit in Riyadh on Wednesday.