Hamas is considered a Palestinian militant group that controls the Gaza Strip. The International Monetary Fund has reported that the conflict between Israel and Hamas is already having negative economic effects on neighboring countries like Egypt, Lebanon, and Jordan. Kristalina Georgieva, the Managing Director of the IMF, discussed these impacts at a Saudi investor forum held in Riyadh during the Future Investment Initiative (FII).
The conflict between Israel and Hamas began with a surprise attack by Hamas on Israel on October 7, leading to casualties and the taking of hostages, according to Israeli authorities.
“What we see is more jitters in what has already been an anxious world,” Georgieva said.
“You have tourism-dependent countries — uncertainty is a killer for tourist inflows.
“Investors are going to be shy to go to that place. Cost of insurance — if you want to move goods, they go up. Risks of even more refugees in countries that are already accepting more,” she said, describing the potential economic cost for countries in the region before ticking specific risks.
The annual FII event, dubbed “Davos in the Desert”, has typically served as a chance for Saudi Arabia to highlight domestic economic reforms whose success Saudi officials say hinges on regional stability.
