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The Managing Director of the International Monetary Fund, Kristalina Georgieva, said the resilience of Gulf economies, particularly the United Arab Emirates and Saudi Arabia, has helped limit the regional fallout from the ongoing US-Iran conflict.
Speaking alongside Fatih Birol of the International Energy Agency, Georgieva said Gulf states have spent the past decade strengthening fiscal policies, building reserves, and diversifying their economies — measures that are now cushioning the impact of geopolitical shocks.
“These countries built strong foundations and buffers, and that strength has supported the wider region,” she said.
The conflict, which escalated in late February, disrupted energy flows through the strategic Strait of Hormuz, sending oil prices more than 40 per cent higher and raising concerns over global inflation and economic growth.
Georgieva noted that the impact varies across countries depending on their economic structure, particularly whether they are energy exporters or importers. Countries with strong institutions and diversified economies are better positioned to absorb shocks.
She added that the IMF does not expect a major surge in emergency funding requests, as many emerging markets have strengthened their financial frameworks, including independent central banks and robust reserves.
Meanwhile, Ajay Banga of the World Bank said the bank could mobilise up to $25 billion in rapid financing for countries affected by the crisis.
Birol highlighted disparities within the region, noting that while Gulf exporters like Saudi Arabia have maintained supply stability through strategic infrastructure, more oil-dependent economies such as Iraq remain vulnerable.
Overall, the UAE and Gulf states continue to play a key role in stabilising regional economies amid ongoing uncertainty.
