Riyadh, Saudi Arabia: The ongoing war between Israel and Hamas has raised concerns about the significant economic repercussions it may have on a global scale. The President of the World Bank, Ajay Banga, delivered this ominous message during an investor conference in Saudi Arabia.
Banga stated, “What just happened recently in Israel and Gaza… when you put all of this together, I believe the impact on economic development is even more serious. I think we’re at a very dangerous juncture.”
The conflict escalated on October 7 when Hamas operatives infiltrated Israel from the Gaza Strip, resulting in the tragic deaths of at least 1,400 people, the majority of whom were civilians killed by gunfire or in fires ignited during the initial raid, according to Israeli authorities. Furthermore, the operatives took 222 individuals hostage, including elderly people and young children, as confirmed by Israeli authorities.
Among the hostages are numerous dual nationals and foreigners. In response, Israeli bombardments of Gaza have caused the deaths of more than 5,000 Palestinians, primarily civilians, according to Gaza’s Hamas-run health ministry.
Banga made these remarks during the annual Future Investment Initiative, an event often likened to “Davos in the Desert.” Over 6,000 delegates are registered for the three-day conference, with prominent appearances from global banking leaders and the presidents of South Korea, Kenya, and Rwanda.
The escalating violence between Israel and Gaza stands in stark contrast to the vision of a more stable and prosperous Middle East championed by Saudi Arabia. Earlier this year, Saudi Arabia had initiated efforts to rebuild ties with Iran and was in discussions regarding recognizing Israel before the outbreak of hostilities.
The World Bank’s warning underscores the wider implications of the Israel-Hamas conflict, which extend beyond the immediate humanitarian crisis to potentially significant economic consequences on a global scale.