Saudi Arabia has given its approval for the establishment of a regional office by the International Monetary Fund (IMF) in Riyadh, a decision expected to deepen collaboration between the two entities and elevate the kingdom’s position in the global financial arena.
As reported by the state-run Saudi Press Agency (SPA), the Saudi Cabinet, under the presidency of King Salman, greenlit the IMF’s request to set up a regional office in the Gulf nation. This move comes approximately two years after the initial agreement for the office was signed in 2022.
Kristalina Georgieva, the Managing Director of the IMF, expressed that the establishment of the regional branch is aimed at strengthening the presence of the global financial institution in Saudi Arabia and fostering greater cooperation with Arab institutions.
Beyond facilitating communication and fostering collaboration between Riyadh and the IMF, this decision could signify deeper integration of the Gulf Cooperation Council (GCC) into global financial structures, facilitating a higher degree of policy alignment.
The specific opening date of the office has not been disclosed yet. However, it is anticipated that the office will play a significant role in the IMF’s engagements and initiatives with the developing economies in the region.
Notably, it could have a substantial impact on the IMF’s support efforts for countries like Egypt.
The IMF intends to bolster its financial assistance package to Egypt, particularly in light of recent events such as Israel’s conflict with Gaza and the potential influx of displaced Palestinian refugees into Egypt’s Sinai desert.
