IMF and Saudi Arabia Lead Initiative for Middle East Economic Recovery

Saudi Arabia and IMF Advance Support for Middle Eastern Economies in Crisis

On February 16, 2025, a critical roundtable meeting was hosted by Saudi Finance Minister Mohammed Al-Jadaan alongside International Monetary Fund (IMF) Managing Director Kristalina Georgieva in AlUla. This event focused on "Supporting recovery in the Middle East’s conflict-affected economies," with particular emphasis on Syria.

Concurrent with the first annual global AlUla Conference for Emerging Market Economies, finance ministers from regional countries, Syria's foreign affairs minister, and leaders of the World Bank Group and other International Financial Institutions participated. They discussed strategies to bolster economic recovery in areas affected by conflict.

Discussed Strategies:

1. Economic Diagnostics: Performing detailed diagnostics to identify gaps in policies, institutional priorities, and financing needs aimed at strengthening fiscal, monetary, and banking institutions.
2. Capacity Development (CD): Expanding IMF and World Bank programs to support essential government functions.
3. Financial Mobilization: Collaborating with international and regional partners to fund comprehensive reform programs that include reconstruction and humanitarian aid.

The discussions highlighted a commitment among the IMF, World Bank, Arab Coordination Group, and regional countries to work collectively within their mandates. An informal coordination group was proposed for these efforts, with plans to continue discussions at the upcoming IMF/World Bank Spring Meetings in Washington D.C.

Future Directions: The strategies discussed mark a concerted effort towards economic stability and recovery in conflict-affected areas of the Middle East. The emphasis on collaboration, capacity building, and financial support offers a roadmap for tackling these complex challenges.