The war between Israel and Hamas risks “serious” economic consequences, the president of the World Bank warned on Tuesday during an investor conference in Riyadh, Saudi Arabia.
“I think that what is happening in Israel and Gaza will have a serious impact on economic development,” Ajay Banga said, adding: “I think we are in a very dangerous moment.”
According to Israeli authorities, more than 1,400 people have been killed on Israeli territory by Hamas men, mostly civilians, since October 7, the day of the Palestinian movement’s attack from Gaza.
According to the Israeli army, Hamas also kidnapped around 220 hostages, Israelis and foreigners.
According to the Hamas Health Ministry in Gaza, more than 5,000 Palestinians, mostly civilians, have been killed in the Gaza Strip by incessant bombing by the Israeli army.
Mr Banga was speaking at the opening of the Future Investment Initiative’s annual conference, often referred to as the “Davos of the desert”.
According to organizers, the three-day forum will be attended by more than 6,000 delegates, including executives from major global banks and companies as well as the presidents of South Korea, Kenya and Rwanda.
Danger of a regional wildfire
Saudi Arabia, which has condemned violence against civilians in Gaza and reiterated its support for the Palestinian cause, has suspended U.S.-sponsored normalization talks with Israel.
The war comes as the kingdom implements a reform program called Vision 2030, inspired by Crown Prince Mohammed bin Salman and aimed at reducing the Saudi economy’s dependence on oil.
Saudi officials have reiterated their intention to move forward with this program despite the risk of regional conflagration.
In addition to the investor forum, Riyadh is currently hosting its first fashion week and a boxing match between Tyson Fury and Francis Ngannou.
On Monday, Prince Mohammed announced that his country would host an e-sports world championship starting in 2024.
The forum’s opening ceremony featured a singing performance by Britain’s Got Talent contestant Malakai Bayoh, while a giant dove appeared on a screen behind him.
Yasir al-Rumayyan, head of the Saudi sovereign wealth fund, only indirectly alluded to the war between Israel and Hamas in his speech and warned of the challenges posed by high interest rates.
However, he expressed optimism, emphasizing that “even in a high interest rate environment, we are seeing an acceleration in growth and productivity.”