The conflict between Israel and Hamas could potentially have a significant impact on global economic progress, as stated by the president of the World Bank 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.”
On October 7, Hamas launched an incursion into Israel from the Gaza Strip, resulting in the reported deaths of at least 1,400 individuals, primarily civilians who were either shot or perished in fires on the first day of the attack, according to Israeli authorities.
As per the latest figures provided by Israeli officials, the Hamas have also taken 222 people captive, including elderly individuals, young children, as well as a number of dual nationals and foreigners.
In response, Israeli bombardments have led to the deaths of over 5,000 Palestinians, mainly civilians, across the Gaza Strip, as per the latest count from the health ministry in Gaza.
Banga delivered his remarks at the annual Future Investment Initiative, often dubbed “Davos in the Desert,” which has attracted more than 6,000 delegates and will see the participation of global banking leaders and the presidents of South Korea, Kenya, and Rwanda, according to organizers.
The conflict arises at a midpoint in the Vision 2030 reform program spearheaded by the de facto leader of the kingdom, Crown Prince Mohammed bin Salman, with the aim of shifting the world’s largest crude oil exporting nation away from reliance on fossil fuels.
Despite concerns of broader regional instability, Saudi authorities have indicated their determination to continue advancing their reform initiatives.
Read also: Israel – Hamas Conflict: 200 Hostages, 20 Children Held in Gaza
Alongside the Future Investment Initiative, the city is currently hosting its inaugural fashion week and a highly anticipated boxing match featuring Tyson Fury and Francis Ngannou.
During the FII opening event, Malakai Bayoh, a former contestant on Britain’s Got Talent, delivered a vocal performance accompanied by the projection of a large dove on the screen behind him.
Yasir al-Rumayyan, overseeing the well-funded Saudi Public Investment Fund, indirectly touched upon the conflict in his remarks on Tuesday, while also highlighting the potential difficulties arising from 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”.
