World Bank President Ajay Banga, speaking at the Future Investment Initiative conference in Saudi Arabia, known as "Davos in the Desert," issued a stark warning about the potential global economic repercussions of the ongoing Israel-Hamas conflict. The conference, which drew over 6,000 delegates including global banking chiefs and presidents of South Korea, Kenya, and Rwanda, took place against a backdrop of escalating violence in the Middle East.
Banga's warning comes in the wake of a severe attack by Hamas militants from Gaza on October 7 that resulted in 1,400 civilian deaths and 222 hostages taken. The hostages include elderly people, children, dual nationals, and foreigners according to Israeli sources. In retaliation to this attack, Israeli bombardments have led to more than 5,000 Palestinian civilian casualties as reported by Gaza's Hamas-run health ministry.
This conflict starkly contrasts with Saudi Arabia's vision for a stable Middle East. The kingdom has been working towards this goal by rebuilding diplomatic ties with Iran and contemplating recognition of Israel. The ongoing violence presents a significant challenge to these diplomatic efforts and the broader stability of the region.
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