Al-Sayari warns Middle East conflict is eroding global buffers
Saudi Central Bank Governor Ayman Al-Sayari warned that the Middle East conflict is spreading through trade, inflation and financing conditions. Speaking to the IMFC in Bangkok, he urged tailored international support and policies that preserve buffers.
Energy disruption reaches beyond oil
Al-Sayari said energy and shipping disruptions now affect transport fuels, fertilizers, food security and production.
Rerouting supplies and drawing down inventories have cushioned the impact but reduced protection against further shocks.
Higher sovereign yields raise debt-service costs, while nonbank leverage, liquidity mismatches, concentrated AI valuations and stablecoins add financial risks.
He called for investment across energy production, refining, storage and diversified transport routes, including oil and gas.
Monetary policy must distinguish temporary supply shocks from broader inflation pressures.
Fiscal policy must rebuild buffers while protecting productive investment and vulnerable households; supervision must address interconnected funding risks.
Fund reforms face implementation test
Al-Sayari urged the International Monetary Fund (IMF) to implement reviews of surveillance, lending conditionality, financial sector assessments and the joint IMF–World Bank debt framework for low-income countries.
Priorities include tailored programs, creditor cooperation through the G20 Common Framework and closer integration of surveillance, financing and capacity development.
Saudi Arabia reaffirmed its $279 million capacity-development pledge and support through the Riyadh office.
He welcomed the one-year IMFC chairmanship extension and backed the Diriyah Guiding Principles for governance reform.
Resilience requires room to act
Al-Sayari's message places buffers, not higher energy prices, at the center of resilience.
He said Saudi Arabia's diversified infrastructure and well-capitalized banks support its response to the conflict.
Vision 2030, marking its tenth anniversary, remains the anchor for diversification and productivity reforms.