(Bloomberg) Saudi Arabia’s finance minister warned that geopolitics could become a top concern for a global economy already facing slowing growth and rising interest rates.
“Today, for me, if you look at the global economy, geopolitical risk is probably the biggest risk,” Mohammed Al-Jadaan said at a special edition of the World Economic Forum in Riyadh on Sunday. “Policymakers need to be very agile in their response to this issue,” he said, pointing to the risks of protectionism in some parts of the world.
Jadaan also called on leaders to “make every effort” to ease tensions, echoing widespread comments by Saudi officials about Israel's war against Hamas and tensions between Iran and Israel. The Middle East situation has pushed oil prices above $90 a barrel earlier this month and continues to put inflationary pressures on the country. Safe-haven gold also hit a record high in April.
Read more: Hamas considers ceasefire, releases video of two hostages
Middle East tensions and the war in Gaza will be the focus in Riyadh over the next two days as at least 12 heads of state and foreign ministers from countries including Britain, France and Germany gather for a World Economic Forum event.
US Secretary of State Antony Blinken is due to speak on Monday and also meet with regional counterparts as part of ongoing efforts to press for improvements to the humanitarian situation in Gaza, the release of hostages held by Hamas and a ceasefire proposal.
Read more: Secretary of State Blinken visits Saudi Arabia on latest Middle East visit
Blinken has made several visits to the Middle East in recent months, including to meet with Saudi Arabia's Crown Prince Mohammed bin Salman to discuss Gaza and the possibility of a U.S.-brokered normalization of ties with Israel.
Asked about progress on Saudi Arabia’s Vision 2030, the crown prince’s plan to diversify the economy away from reliance on oil, Jadaan also reiterated that some projects have been delayed while others are being accelerated as the kingdom adjusts its plans.
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–With assistance from Christine Burke and Sarah Halls.
(Updated to add oil, gold prices in third paragraph.)
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