Saudi Finance Minister says geopolitics world economy’s top risk
Saudi Arabia’s finance minister warned geopolitics may be the single biggest concern for the world economy that’s already facing slower growth and elevated interest rates.
“Today, to me, geopolitical risks are possibly the No. 1 risk as you look at the global economy,” Mohammed Al-Jadaan said at a special edition of the World Economic Forum in Riyadh on Sunday. “Policymakers will need to be very agile in dealing with this,” he said, citing risks of protectionism in some parts of the world.
Jadaan also called on leaders to “do everything we can” to de-escalate, echoing comments more broadly made by Saudi government officials around Israel’s war against Hamas and tensions between Iran and Israel. The situation in the Middle East contributed to oil prices climbing above $90 a barrel earlier this month, keeping the pressure on inflation. Gold, a safe haven asset, also hit a record high in April.
Middle East tensions and the war in Gaza will be focal points in Riyadh over the next two days as at least a dozen heads of state and foreign ministers from countries including the UK, France and Germany gather at the World Economic Forum event.
US Secretary of State Antony Blinken is due to speak on Monday. He’ll also meet with regional counterparts amid a continued push for improvements to the humanitarian situation in Gaza, the release of hostages held by Hamas, and proposals for a ceasefire.
Blinken has traveled to the Middle East several times in recent months, including for talks with Saudi Crown Prince Mohammed bin Salman about Gaza and a possible US-brokered deal to normalize ties with Israel.
Separately, when asked about Saudi Arabia’s progress on Vision 2030 — the crown prince’s drive to diversify the economy away from crude oil — Jadaan reiterated some projects are being delayed while others are accelerated as the kingdom adjusts its plans.
