IMF chief warns recent attacks on Saudi Arabia could have global impact

International Monetary Fund Managing Director Kristalina Georgieva has warned that the recent attacks on Saudi Arabia could affect people worldwide, citing rising energy costs and ongoing conflicts in the oil-rich region.

Speaking at a press conference on the sidelines of the IMF and World Bank annual meetings on Wednesday, Georgieva said Saudi Arabia's economy holds significant regional and global importance, and that recent developments could have negative repercussions beyond the Kingdom's borders.

Praise for economic and fiscal reforms

Georgieva praised the economic and fiscal reforms Saudi Arabia has implemented in recent years, saying they have provided the Kingdom with strong buffers to withstand the impact of war and geopolitical shocks.

She highlighted Saudi Arabia's success in diversifying its economy, noting that the non-oil sector has been growing faster than the oil sector prior to the outbreak of conflict, with the gap widening since then.

Georgieva also noted that Gulf countries, including Saudi Arabia, have taken important steps to strengthen fiscal resilience, such as introducing value-added tax during the COVID-19 pandemic to boost domestic revenues.

Regional and global repercussions

Georgieva cautioned that the potential economic fallout from the recent attacks is not limited to Saudi Arabia, but could extend to other countries given the Kingdom's economic weight in the region and globally.

She expressed sympathy for the Saudi people and authorities over the human losses resulting from recent events, stressing that structural reforms, fiscal discipline, and economic diversification have helped build buffers that support Gulf countries in facing current challenges.