DUBAI: The war in Ukraine has “multiplied risks” for the Middle East and North Africa’s poorer countries by raising food and energy prices, the World Bank said Thursday, warning of potential social unrest.
In its latest update to its MENA growth forecast, the development lender said inflationary pressures set off by Covid-19 “are likely to be exacerbated” by Russia’s invasion.
“The threat of Covid-19 variants remains and the war in Ukraine has multiplied risks, particularly for the poor,” the World Bank’s MENA vice president, Ferid BelHajj, said in the report, titled “Reality Check.”
World Bank president David Malpass said this week that the Russian war on Ukraine has started a chain reaction in the global economy, pushing energy and food prices higher, exacerbating debt concerns and potentially worsening poverty and hunger.
“Rising food prices may have far-reaching effects beyond increasing food insecurity,” said the report, adding: “Historically in MENA, increases in bread prices have... contributed to increased social unrest and conflict.
“This link between food prices, conflict and low growth poses a serious concern for the humanitarian crisis in fragile, conflict and violence-affected states in MENA,” it said.
Ukraine is a key source of grain, while Russia is a major producer of energy and fertilizer needed for agriculture. The MENA region is heavily dependent on wheat supplies from both countries.
According to the report, inflation in oil-rich Gulf countries is expected to reach 3.0 percent this year compared to 1.2 percent in 2021, and will rise to 3.7 percent in oil-importing countries from 1.4 percent last year.
“For some oil importers, food subsidies would be hard to maintain due to limited resources,” while “rising oil prices could delay reforms,” the report said.
Despite that, the World Bank forecasts that economic growth in the region will be 5.2 percent in 2022, the fastest rate since 2016.
“The region as a whole is buoyed by oil” and is doing “much better” than any other in the world, lead economist for the MENA region Daniel Lederman told AFP in an interview.
However, the expected growth is “insufficient and uneven.”
“Insufficent because a large number of economies in the MENA region will still be poor in terms of their GDP per capita relative to where they were in 2019 in the eve of the pandemic,” he said.
And “uneven because the faster (recovering) economies for 2022 are expected to be oil exporters, but oil importers are expected to suffer.”
Oil-exporting economies are expected to grow 5.4 percent on the back of the recovery from the pandemic, the expected increase in oil output and high oil prices.
But oil importers are expected to expand by a much lower 4.0 percent, the report said, warning that 11 out of 17 MENA economies may not recover to pre-pandemic levels by the end of this year.
“When the price of energy and food rises, it hurts the poorest and the most vulnerable,” Lederman said.
![]()
War in Ukraine raising risks for Mideast, World Bank warns
Short Url
https://arab.news/c8gsp
War in Ukraine raising risks for Mideast, World Bank warns
- The development lender said inflationary pressures set off by Covid-19 "are likely to be exacerbated" by Russia's invasion
- Historically in MENA, increases in bread prices have... contributed to increased social unrest and conflict
Influential Israeli minister Smotrich calls for US-led center for Gaza to be shuttered
- Smotrich also says hostile states should be removed from center
- Calls for ultimatum to Hamas, then full-force assault
JERUSALEM: Israeli Finance Minister Bezalel Smotrich urged Prime Minister Benjamin Netanyahu on Monday to shut a US-led multinational coordinating center that supports President Donald Trump’s plan to end the Gaza war.
Washington established the Civil Military Coordination Center (CMCC) last October as a center for civilian and military personnel from other countries to work alongside US and Israeli officials on post-war Gaza planning.
“The time has come to dismantle the headquarters in Kiryat Gat,” said Smotrich, the influential, far-right cabinet minister, in remarks shared by his office to media, referring to the Israeli city northeast of Gaza where the center is based.
The Israeli prime minister’s office, the US State Department and the US military’s Central Command did not immediately respond to requests for comment on the remarks.
Smotrich also said that Britain, Egypt and other countries that are “hostile to Israel and undermine its security” should be removed from the CMCC. The British and Egyptian foreign ministry did not immediately respond to requests for comment.
Central Command in December said that 60 countries and organizations were represented at the center. The CMCC has also been tasked with facilitating humanitarian aid entering Gaza.
The US-led CMCC was established after Trump announced his 20-point plan to end the war. Germany, France, and Canada are also among countries that have sent personnel there.
Smotrich, speaking at an event marking the establishment of a new Jewish settlement in the Israeli-occupied West Bank, said that Hamas should be given a “very short” ultimatum to disarm and go into exile, and once that ultimatum expires, the military should storm Gaza with “full force” to destroy the militant group.
“Mr. Prime Minister, it’s either us or them. Either full Israeli control, the destruction of Hamas, and the continued long-term suppression of terrorism, encouragement of the enemy’s emigration outward and permanent Israeli settlement,” he said.
The plan, announced by Trump in September, states that members of Hamas who commit to peaceful coexistence and to decommission their weapons will be given amnesty. Those who want to leave Gaza will be given safe passage to other countries.
The White House last week announced that the president’s plan to end the war was moving to the second phase, which would include the demilitarization and reconstruction of Gaza.
Under the initial phase of the plan, Israel and Hamas agreed to a ceasefire in Gaza that went into effect in October.
Hamas also released the remaining living hostages abducted from Israel during the October 2023 attack, who had been held in Gaza since then. The remains of all but one deceased hostage have been handed over as well.
Since the ceasefire started, Israel has repeatedly carried out air strikes in Gaza.
Over 460 Palestinians and three Israeli soldiers have been killed in Gaza since the ceasefire came into effect.
Washington established the Civil Military Coordination Center (CMCC) last October as a center for civilian and military personnel from other countries to work alongside US and Israeli officials on post-war Gaza planning.
“The time has come to dismantle the headquarters in Kiryat Gat,” said Smotrich, the influential, far-right cabinet minister, in remarks shared by his office to media, referring to the Israeli city northeast of Gaza where the center is based.
The Israeli prime minister’s office, the US State Department and the US military’s Central Command did not immediately respond to requests for comment on the remarks.
Smotrich also said that Britain, Egypt and other countries that are “hostile to Israel and undermine its security” should be removed from the CMCC. The British and Egyptian foreign ministry did not immediately respond to requests for comment.
Central Command in December said that 60 countries and organizations were represented at the center. The CMCC has also been tasked with facilitating humanitarian aid entering Gaza.
The US-led CMCC was established after Trump announced his 20-point plan to end the war. Germany, France, and Canada are also among countries that have sent personnel there.
Smotrich, speaking at an event marking the establishment of a new Jewish settlement in the Israeli-occupied West Bank, said that Hamas should be given a “very short” ultimatum to disarm and go into exile, and once that ultimatum expires, the military should storm Gaza with “full force” to destroy the militant group.
“Mr. Prime Minister, it’s either us or them. Either full Israeli control, the destruction of Hamas, and the continued long-term suppression of terrorism, encouragement of the enemy’s emigration outward and permanent Israeli settlement,” he said.
The plan, announced by Trump in September, states that members of Hamas who commit to peaceful coexistence and to decommission their weapons will be given amnesty. Those who want to leave Gaza will be given safe passage to other countries.
The White House last week announced that the president’s plan to end the war was moving to the second phase, which would include the demilitarization and reconstruction of Gaza.
Under the initial phase of the plan, Israel and Hamas agreed to a ceasefire in Gaza that went into effect in October.
Hamas also released the remaining living hostages abducted from Israel during the October 2023 attack, who had been held in Gaza since then. The remains of all but one deceased hostage have been handed over as well.
Since the ceasefire started, Israel has repeatedly carried out air strikes in Gaza.
Over 460 Palestinians and three Israeli soldiers have been killed in Gaza since the ceasefire came into effect.
Latest updates
© 2026 SAUDI RESEARCH & PUBLISHING COMPANY, All Rights Reserved And subject to Terms of Use Agreement.