ContextStatement to the IMF's steering committee during the Annual Meetings; Saudi Arabia's central bank safeguards monetary and financial stability, and its main challenge is Middle East conflict spillovers.
Why it mattersIt presents Saudi Arabia's position at a key IMF meeting, linking the regional conflict to global policy priorities and to the Kingdom's own resilience.
- The Middle East conflict spreads from energy and shipping to trade, inflation, financing conditions and confidence.
- Energy-importing emerging markets face bigger import bills, external strain and debt vulnerabilities.
- Low-income and fragile states suffer higher costs, tighter financing and falling development aid.
- Aim monetary policy at price stability, avoiding overreaction to temporary supply-driven price rises.
- Rebuild fiscal buffers while protecting productive investment and targeted support for vulnerable households.
- Settle unsustainable debt through timely, orderly treatments and creditor cooperation, with focused program conditions.
Read the speech summary
1. A broadening shock
Saudi Arabia's central bank governor tells the IMF's steering committee that the Middle East conflict, first felt in energy and shipping, now spreads through trade, transport, inflation, financing and confidence. Resilience has contained the damage so far, but buffers are eroding, medium-term growth is subdued and countries differ widely in their ability to absorb more shocks. Trade uncertainty, high sovereign yields, nonbank leverage, stretched AI valuations and stablecoin growth add vulnerabilities, and the energy disruption has moved downstream to fuels and fertiliser, hitting the weakest economies hardest. Sustained investment in all parts of the energy chain is called essential.
2. Policy advice
Monetary authorities should protect price stability, looking past temporary supply-driven increases but acting decisively if pressures broaden or expectations slip. Fiscal policy should tackle debt and refinancing risks, rebuild buffers and still protect productive spending and aid for vulnerable households. Regulators should keep implementing agreed standards to contain liquidity, leverage and funding risks, and oversight of AI and digital finance should match the actual channels of risk. Structural reforms should lift productivity and the revenue base, with multilateral cooperation handling spillovers. Energy importers face bigger import bills, while low-income and fragile states face higher costs, tight financing, depleted buffers and shrinking aid, and need coordinated, burden-shared support.
3. The Fund's role
After recent reviews, attention should turn to even-handed implementation: focused, agile surveillance with more work on persistent global imbalances; financial sector assessments that keep up with nonbank, private credit and digital risks; realistic programs with prioritised conditionality that respects national ownership; an improved debt framework for poorer countries; orderly debt treatment through the G20 common framework; and capacity development tied to surveillance and lending, backed by Saudi Arabia's 279 million dollar pledge and a Riyadh office. The Fund should also analyse AI and stablecoins more closely. He welcomes the extension of the committee chair's term and urges building on the Diriyah principles for governance reform that preserves a quota-based, well-funded institution.
4. Saudi resilience
The Kingdom's economy is described as resilient, backed by prudent frameworks, large buffers, a well-capitalised banking system confirmed by stress tests and diversified energy and logistics routes that kept oil and trade flowing. Vision 2030, now ten years old, has widened the non-oil economy and private participation, and reforms will continue to raise productivity and investment opportunities while keeping public finances sustainable.
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