The ongoing war between Israel and Hamas in Gaza threatens to destabilize the global economy, according to business leaders at the Future Investment Initiative (FII) in Saudi Arabia.
Since Hamas militants launched attacks into Israel on October 7th, at least 1,400 Israelis have been killed and over 220 taken hostage per Israeli officials. Israel’s retaliation has left over 5,700 Palestinians dead in Gaza as reported by health authorities there.
World Bank President Ajay Banga warned that the conflict’s impact on economic development could be even more damaging. With the potential for neighboring countries like Lebanon and Hezbollah to be drawn into the clashes, the war risks becoming a wider regional conflict.
BlackRock CEO Larry Fink cautioned that failure to resolve the Gaza crisis could fuel more global terrorism and insecurity worldwide. This would breed fear and uncertainty, stifling hope and economic growth.
The somber economic outlook from major players at the FII underscores how the war jeopardizes Saudi Arabia’s efforts to diversify its economy beyond oil and gas. The conflict’s destabilizing ripple effects could hinder investment and growth globally.
