Will Palestinian crisis spill over, economically impact neighbouring countries?

The discussion also shed light on the role played by Arab countries in global alliances, with a specific focus on the Brussels alliance

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Ruqayya Al Qaydi

Published: Wed 3 Jan 2024, 7:25 PM

Last updated: Thu 4 Jan 2024, 10:50 AM

The increasing intensity of the Gaza crisis may affect economic corridors, trade movements, and tourism in the region, an expert said at the 'Arab Strategy Forum 2024'.

Dr Jihad Azour, the Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), pointed out that the economic impact would likely be limited in Palestine and nearby nations, unless it translates into disruptions in trade routes or oil markets.

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Anticipating a potential spike in oil prices due to the crisis, the expert said that rapid adaptation is expected, even though a disruption in oil production is unlikely.

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He spoke of the diversified nature of oil outlets, which can mitigate the risk of significant production halts.

Dr Azour highlighted the influence of political situations on Arab economies, categorising the impact into three aspects: trade movement, investment and financial markets, and the oil and gas sector.

The discussion also shed light on the role played by Arab countries in global alliances, with a specific focus on the Brussels alliance, noting that participation in such alliances enhances the global influence of such nations, making them stronger actors.

Additionally, the importance of Gulf support for neighbouring countries was highlighted as a crucial and relevant aspect of the economic landscape in the Arab region.

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Ruqayya Al Qaydi

Published: Wed 3 Jan 2024, 7:25 PM

Last updated: Thu 4 Jan 2024, 10:50 AM

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