World Bank Governor's Statement No. 9 - October 25, 2024 - Statement by Ali bin Ahmed Al-Kuwari on behalf of the Arab Governors

Jul 19, 2026

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World Bank Governor Ali bin Ahmed Al-Kuwari delivers Statement No. 9 for the Arab Governors, emphasizing fragility linked to wars and conflicts and their cascading economic effects across the Middle East and North Africa. The statement cites escalating damage in Gaza, disruption to Red Sea trade routes, and growing humanitarian needs, urging immediate steps to end aggression and ensure safe humanitarian access. It calls for scaled economic assistance and reconstruction, including exploring opportunities for Palestine’s full membership in Bretton-Woods institutions. It also highlights conflict impacts in Sudan, Lebanon, Yemen, and Syria, alongside the need to strengthen monitoring, institutional resilience, and context-specific policy support.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages8

Reading Time20 min

Regional Context: Fragility related to Wars and Conflicts

Economic Outlook and Regional Performance

Public Disclosure Authorized Public Disclosure Authorized World Bank Governor's Statement No. 9 October 25, 2024 Statement by the Hon. ALI BIN AHMED AL-KUWARI, Governor of the IBRD for QATAR, ON BEHALF OF THE ARAB GOVERNORS Statement by the Hon. Ali bin Ahmed Al-Kuwari, Governor of the IBRD for Qatar, on Behalf of the Arab Governors Regional Context: Fragility related to Wars and Conflicts The horrifying war on Gaza and lately on Lebanon has added an additional layer of complexity, with spillovers impacting not just the Palestinian economy but also neighboring countries. In early April, the joint World Bank-UN-EU Interim Damage Assessment estimated the cost of destruction of infrastructure in Gaza at $18.5 billion (as of January 2024), equivalent to 97% of the Palestinian economy in 2022. The tripartite group is now preparing a Rapid Damage and Needs Assessment which is expected to reveal damage, loss, and needs figures that are multiples of the amount from the interim assessment. Since the indicated estimate, destruction has worsened considerably, and infrastructure reconstruction will require time and resources. The spillovers from the conflict are also disrupting key Red Sea global trade routes, increasing logistical bottlenecks, and shipping costs, exacerbating supply chain vulnerabilities, and further straining regional economies. We call on the international community to explore all options to bring this aggression on Lebanon to an immediate end and foster a lasting peace in the region. We also underscore the need for safe and unhindered humanitarian access to Gaza to mitigate the economic and humanitarian crisis. We appeal to the International Monetary Fund (IMF) , the World Bank Group (WBG) and other international partners to prioritize economic assistance, recovery and post-crisis financial support and reconstruction for Gaza and the broader region. To provide commensurate support to the Palestinian people during the current tragic circumstances and considering the overwhelming international political support atthe United Nations General Assembly, we urge the IMF and WBG to explore opportunities for granting Palestine full membership in the Bretton-Woods institutions. Fragility, conflict, and violence (FCV) severely affect people and economies, especially in the Middle East and North Africa (MNA) region, where one in five individuals lives near conflict. This rising instability undermines consumer and business confidence, reducing spending and investment. People in fragile and conflict-affected situations (FCS) face greater deprivation and lag in human capital and infrastructure, with conflicts driving hunger and food insecurity. The intersection of conflict with climate change and pandemics exacerbates these challenges, particularly for women. The IMF and the WBG should both scale up support in FCS while helping countries to address the drivers of fragility as well as spillover effects. Strengthening real-time monitoring, local knowledge, and institutional resilience is essential for rebuilding trust and preventing future crises. Policy interventionsin FCS should be context-specific, spatially targeted, and informed by local knowledge. The core of WBG's efforts should focus on bolstering institutional resilience, which in turn strengthens citizens' trust in the state, while balancing emergency support with development interventions. Enhancing staff incentives, country footprint, and partnerships is also key to maximizing impact. We are also deeply concerned about the conflicts in Sudan, Lebanon, and Yemen, which have resulted in loss of lives and livelihoods as well as displaced millions of people. The dire economic and humanitarian situation in those countries require urgent regional and international attention and support. We, therefore, emphasize the urgent need for targeted and scaled-up support. Moreover, considering the aggravating economic and humanitarian crisis exacerbated by the devast

FAQs

What immediate concerns does the statement raise regarding Gaza and Lebanon?

It highlights worsening destruction, severe economic spillovers, disrupted regional trade routes, and the urgent need for safe, unhindered humanitarian access to mitigate the economic and humanitarian crisis.

How does the statement connect fragility, conflict, and violence to broader regional development challenges?

It explains that rising instability reduces consumer and business confidence, weakens spending and investment, and deepens deprivation in fragile and conflict-affected situations, including impacts on hunger, food insecurity, and human capital.

What policy support and institutional actions does the statement urge from international partners?

It calls on the IMF, World Bank Group, and other partners to prioritize economic assistance, recovery, post-crisis financial support, and reconstruction, including exploring options for Palestine’s full membership in Bretton-Woods institutions.

Jul 19, 2026

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