(Riyadh) The war between Israel and Hamas risks having “serious” economic consequences, the president of the World Bank warned on Tuesday during an investors conference in Riyadh, Saudi Arabia.
“I think what is happening in Israel and Gaza […] will have a serious impact on economic development,” said Ajay Banga, adding: “I think we are at a very dangerous moment.”
More than 1,400 people have been killed on Israeli territory by Hamas men, the majority civilians, since October 7, the day of the attack by the Palestinian movement carried out from Gaza, according to the Israeli authorities.
Hamas also kidnapped around 220 hostages, Israelis and foreigners, according to the Israeli army.
In the Gaza Strip, more than 5,000 Palestinians, mostly civilians, have been killed in incessant bombings carried out in retaliation by the Israeli army, according to the Hamas Ministry of Health in Gaza.
Mr Banga was speaking at the opening of the annual Future Investment Initiative conference, often called the “Davos of the desert”.
More than 6,000 delegates are participating in the three-day forum, which will include leaders of major global banks and companies and the presidents of South Korea, Kenya and Rwanda, according to organizers.
Risk of regional conflagration
Saudi Arabia, which has condemned violence against civilians in Gaza and affirmed its support for the Palestinian cause, has suspended talks for normalization with Israel sponsored by the United States.
The war comes as the kingdom carries out 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 affirmed 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 organize an e-sports World Cup from 2024.
The forum’s opening ceremony featured a vocal performance from 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 was optimistic, emphasizing that “even in a high interest rate environment, we can see an acceleration in growth and productivity.”