The Bottom Line: An Unprecedented Plan to Help Arab Post-Conflict Economies, Starting with Syria

?#SaudiArabia and the International Monetary Fund announced what I believe is an unprecedented initiative to help post-conflict economies in the Middle East recover, with a focus on #Syria. The effort involves major global financial institutions and countries in the region.

It’s a plan that underscores an understanding that we are seeing a once-in-a-generation opportunity to transform a troubled part of the region. Here is why:

Disclaimer: Any opinions expressed here do not necessarily represent the views of my employer.?

The Bottom Line:

·???? The initiative brings together counties in the region, the IMF, the World Bank and the Arab Coordination Group (several financial and development institutions).

·???? It focuses on multiple pillars, including:

1)?? A Continuous Diagnostic of the challenges and [economic and social] context facing each conflict-affected country, including an assessment of humanitarian and reconstruction needs.

2)?? Enhanced Capacity Development aimed at rapidly scaling up IMF and World Bank CD initiatives to help strengthen and, as needed, build new institutions. ?

3)?? Mobilization of financial assistance from the international community. Financial support—coordinated with international and regional development partners—will be needed to fund comprehensive reform programs, including reconstruction and humanitarian aid.

·???? The surprise announcement came after a meeting of all involved countries/groups with Syrian Foreign Minister Assad Al Shaibani on the sidelines of the AlUla Emerging Markets conference.

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Why it Matters?

·???? The spectacular collapse of the Assad regime in Syria and the weakening of Hezbollah in Lebanon and Hamas in Gaza offers a rare chance to stabilize a region that was part of Iran’s political sphere of influence.

·???? Even if Iran isn’t part of the equation, the initiative shows an awareness that Syria and other affected areas need a comprehensive rebuilding of state institutions. It’s not just about money and reconstruction.

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Context:

·???? The focus on Syria makes sense, given it will potentially need the lion’s share of resources after 14 years of civil war.

·???? It also shows how Saudi Arabia is keen on stabilizing the country post-Assad, which means supporting the government of interim President Ahmed Al-Sharaa. ??

·???? Earlier, IMF Managing Director Kristalina Georgieva told my colleague Nour Amache from Asharq Business ?????? ????? with Bloomberg that IMF staff have already engaged the Syrian government to begin assessing Syria’s economic situation.

·???? Lebanon should be next on the agenda, but the fund is waiting for the new government to secure parliamentary approval at the end of the month.

About Me:

I am a Lebanese journalist, commentator and media executive. I run SRMG Academy, the media training arm of Saudi Research and Media Group, where I am also the managing director of content development. Before SRMG, I was Bloomberg News’ managing editor for European economics and the managing editor for the Middle East and North Africa. I worked for Reuters and the Associated Press in various locations, including Dubai, Cairo, London and Beirut.