Saudi economy remains resilient despite Middle East conflict, SAMA governor says

RIYADH — Saudi Arabia's economy remains resilient despite the ongoing conflict in the Middle East, supported by strong financial buffers, a well-capitalized banking system and prudent economic policies, Saudi Central Bank (SAMA) Governor Ayman Al-Sayari said during the 2026 IMF and World Bank Annual Meetings in Thailand.In the Kingdom's statement to the International Monetary and Financial Committee (IMFC), Al-Sayari warned that the Middle East conflict was increasingly affecting the global economic outlook, with disruptions spreading beyond energy markets and major shipping routes to international trade, transportation, inflation and financial conditions.He said the conflict continued to weigh on the global economy amid heightened uncertainty, elevated debt levels and limited policy flexibility, with its economic consequences varying significantly across countries in the Middle East and North Africa.Al-Sayari noted that the global economy had performed better than initially feared, although its resilience had come at a cost.He cautioned that economic buffers had been eroded, medium-term growth remained subdued and the overall global outlook concealed substantial differences between countries and sectors.The governor stressed that monetary policy should continue to safeguard price stability while responding to the sources and persistence of inflationary pressures, in line with each country's monetary and exchange rate framework.He also called for fiscal policies that address debt and refinancing vulnerabilities, rebuild financial buffers and preserve productive investment and targeted assistance for vulnerable households.Turning to Saudi Arabia's economic performance, Al-Sayari emphasized that the Kingdom had maintained its resilience amid regional instability through sound economic policies, substantial financial reserves and the institutional capacity to respond rapidly to emerging challenges.He highlighted the strength of Saudi Arabia's banking sector, describing it as well-capitalized and liquid, supported by forward-looking macroprudential policies that provide a solid foundation for financial stability.Al-Sayari said Saudi Vision 2030 had strengthened the Kingdom's economic fundamentals by expanding non-oil economic activity, increasing private-sector participation and improving institutional capabilities.He reaffirmed Saudi Arabia's commitment to advancing economic diversification, deepening financial markets, developing human capital and raising productivity.The Kingdom will also continue strengthening infrastructure and institutional capacity to support sustainable and inclusive economic growth, he added.Addressing the role of the International Monetary Fund, Al-Sayari stressed the importance of effective multilateral cooperation in responding to global economic challenges.He called on the IMF to remain prepared to provide timely support to member countries through balanced economic surveillance, tailored policy advice and capacity-development programs that reflect individual national circumstances.The governor also urged the Fund to strengthen its analysis of persistent global imbalances, including their underlying causes, transmission channels and cross-border consequences, while accounting for differences in countries' economic structures.He emphasized that IMF-supported programs should remain realistic, adaptable and tailored to members' needs to help address balance-of-payments difficulties and restore external economic stability.On IMF governance reform, Al-Sayari welcomed the one-year extension of the IMFC chairmanship, saying it would support continued dialogue and consensus-building among member countries.He reaffirmed Saudi Arabia's support for the Diriyah Guiding Principles as a foundation for reforming the Fund's governance structure.Al-Sayari stressed the importance of translating those principles into practical progress through sustained dialogue, strengthening members' representation while preserving a well-resourced, quota-based IMF.