The ongoing Israel-Hamas conflict and its potential to further destabilize the global economy was a central topic of discussion at the Future Investment Initiative (FII) summit, held in Riyadh. The IMF's Kristalina Georgieva, during her speech at the conference, expressed concerns over the escalating global tension due to the conflict, emphasizing its impact on tourism and investment in affected areas including Egypt, Lebanon, and Jordan.
Georgieva also commented on the surge in interest rates, warning that high rates are likely to persist. This sentiment was echoed by Wall Street bankers who shared a pessimistic outlook citing tight monetary policies and upcoming US elections.
The FII Investment Conference, colloquially known as "Davos in the desert," was marked by discussions centered around the Israel-Hamas conflict. The conference's deal-making focus was overshadowed by Israel's escalated Gaza strikes in response to a Hamas attack within its borders.
Jamie Dimon of JPMorgan Chase (NYSE:JPM) urged Saudi Arabia to adhere to a US-led initiative for formal relations with Israel during his address at the event. He emphasized the importance of regional stability for economic growth and prosperity.
Despite the concerns raised, influential figures including Saudi Finance Minister Mohammed Al-Jadaan, Affinity CEO Jared Kushner, Rivian (NASDAQ:RIVN)'s RJ Scaringe, and BofA's Jim DeMare actively participated in the discussions. Their participation underscores the criticality of these issues and their potential impact on global economic stability.
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