The fallout of the Russia-Ukraine conflict has already begun to cause concerns in the Middle East, as the third-largest exporter of oil in the world and the bread-basket of Europe faces sanctions, causing fuel and wheat prices to rise while certain Middle East airlines temporarily suspend flights to destinations in Russia.
Meanwhile, the Middle East economies are also facing the impact of inflation as they continue to drive their energy transition agendas.
Scott Livermore, the ICAEW economic advisor and chief economist at Oxford Economics, talks to Arabian Business in an exclusive interview explaining the economic impacts that the Middle East needs to brace for in the weeks to come.
“We’re in the eye of a crisis. The Russia-Ukraine war is more severe than we expected in February – both in terms of scale of the conflict and how the US and Europe have responded through sanctions, banning certain banks from SWIFT, limiting access from the Central Bank of Russia, while business entities themselves have withdrawn from Russia en masse,” Scott Livermore said.
“There are a number of ways in which this effects the Middle East. In terms of the economic impact, there are three main channels that could be impacted: the trade impacts, financial impacts, and commodity price and inflationary impacts,” he added.
Watch the in-depth discussion for all the finer details.
(Source: ArabianBusiness YouTube channel)
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