Saudi Finance Minister and IMF Partnership for Recovery in Conflict-Affected Middle Eastern Economies

Collaboration for Recovery in the Middle East

In recent developments during the inaugural global AlUla Conference for Emerging Market Economies, held on February 16-17 in Al Ula, Saudi Arabia, a significant roundtable discussion took place. This assembly was co-hosted by the Saudi Finance Ministry and the International Monetary Fund (IMF), focusing specifically on recovery strategies for conflict-affected economies in the Middle East, with an emphasis on Syria.

The meeting brought together a wide range of influential figures, including finance ministers from various countries, Syria's Foreign Minister, the Managing Director of Operations at the World Bank Group, and leaders from other international financial institutions and the Arab Coordination Group.

Kristalina Georgieva, the Managing Director of the IMF, and Saudi Arabia’s Finance Minister, Mohammed Aljadaan, issued a joint statement emphasizing the urgency and significance of supporting recovery in these regions. “This gathering allowed us to collaboratively discuss the pressing challenges facing conflict-affected economies and how we can effectively address humanitarian needs,” they stated.

Key Priorities for Recovery

During the discussions, several critical priorities were identified to aid affected countries including:
1. Continuous Diagnostics: Establishing a continuous evaluation of the challenges and socio-economic contexts encountered by each conflict-affected nation. This process includes assessing humanitarian needs and identifying gaps in institutional capacity and financing requirements.
2. Enhanced Capacity Development: Intensifying capacity development initiatives facilitated by the IMF and World Bank to fortify existing institutions and create new systems as necessary. This support is crucial to reinforcing the fiscal, monetary, and banking functions within the economies.
3. Financial Assistance Mobilization: There was an overarching agreement on the necessity of mobilizing financial resources from the international community. Coordinated financial assistance will support comprehensive reform programs that include reconstruction and humanitarian aid.

Building Collaboration for Progress

The participants expressed gratitude towards the collaborative spirit among the IMF, World Bank, Arab Coordination Group, and regional countries. They recognized the importance of each institution carrying out its mandate while working together to enhance recovery efforts. This informal coordination group established during the meeting aims to bolster these initiatives.

Looking ahead, the commitment to further discussions on the formulated plans was reiterated for the upcoming IMF and World Bank Spring Meetings scheduled from April 25-27, 2025, in Washington, D.C. Here, participants hope to refine and advance these strategies for sustained recovery efforts in conflict-affected areas.

This gathering at the AlUla Conference marks a crucial step towards addressing the pressing humanitarian and economic needs of conflict-affected nations, signaling a joint commitment to turn challenges into opportunities for recovery and growth across the region. The determination of these entities illustrates a broader aim to foster resilience and stability in the Middle East as they navigate complex economic landscapes shaped by conflict and uncertainty.