The next 6 months will be tough for the global economy but the Gulf will remain strong, says Saudi finance minister
RIYADH: The world will face a very difficult period in six months, as economic challenges such as high interest rates and inflation persist in almost all countries, Saudi Finance Minister Mohammed Al-Jadaan has warned .
Speaking at the Future Investment Initiative forum in Riyadh on October 26, the minister said the Gulf region would remain stable despite these economic headwinds, adding that the Kingdom would support other countries in the region facing challenges in these hard times.
“The region is largely divided into two areas. One is the Gulf region, and for them the next six months, and maybe the next six years, will be very good. The wider region is going to be very difficult, and it is our role to help this wider region,” Al-Jadaan said, adding, “Around the world, I think we have to work to ensure that there is more collaboration and cooperation to bring stability, and that is what we are doing.
The Saudi finance minister noted that the world needs stability and predictability to ensure the availability of macro finance and investments.
Talking about climate change, he said it was one of the serious problems currently facing the world, adding that the problem would not be solved with the efforts of one country.
He stressed that all countries should cooperate and collaborate to solve problems related to climate change.
“The world is trying to deal with this (problems related to climate change). Multilateral institutions are trying to deal with the impacts of climate change. In the region, we are making a lot of efforts to reduce emissions, deal with climate change and invest in renewable energy,” Al-Jadaan said.
For his part, Shaikh Salman bin Khalifa Al-Khalifa, Minister of Finance and National Economy of Bahrain, said the world faces a host of challenges.
“Inflation is fueled by supply chain disruption, aggravated by conflict in Europe. And now it is a period where there is food price inflation, energy price inflation and that is a big problem,” Al-Khalifa said.
He noted, however, that the positive aspect that gives better hope is the reduction in shipping prices.
Steven Mnuchin, managing partner of Liberty Strategic Capital, said energy security is also part of national security.
“I believe that over the next five years we will see tremendous advances in carbon capture technologies. The short-term solution to climate change is really around carbon capture. This is obviously a global issue and it needs to be addressed,” Munchin added.