Seven MDBs Pledge Support for Middle East Conflict Impacts

Key highlights
  • Support includes trade and supply‑chain finance to secure access to energy, food and fertilizer and to support diversification.
  • Fast‑disbursing budget support will help governments protect poor and vulnerable households while preserving medium‑term fiscal resilience.
  • Provision of working capital, liquidity and advisory services targets firms, SMEs, utilities and public clients to absorb market volatility and protect jobs.
  • Policy advice, technical assistance and investments will strengthen resilience through energy diversification, improved connectivity and vigilant monitoring of food‑security risks.

Context

MDBs are responding to requests to address compound impacts of the Middle East conflict, including disruptions to energy and fertilizer markets and trade routes, with spillovers to inflation, food security, jobs, fiscal and external balances, and financing conditions.

Instruments and approach

MDBs will combine financing, policy support, private‑sector instruments and technical expertise at scale, providing assistance aligned with their mandates, strategies and operational models to help countries manage shocks, preserve development gains and strengthen long‑term resilience.

Immediate measures

Actions include trade and supply‑chain finance and diversification to secure access to energy, food and agricultural inputs; fast‑disbursing budget support to protect poor and vulnerable households while preserving price signals and fiscal resilience; and working capital, liquidity and advisory services for firms, SMEs, utilities and public clients to absorb market volatility and protect jobs.

Medium‑term resilience and coordination

MDBs will provide policy advice and technical assistance for targeted, time‑bound support that preserves incentives and medium‑term fiscal sustainability, invest in energy diversification and improved connectivity, maintain vigilant monitoring of food‑security risks, and coordinate with governments, development partners and the private sector to adapt and scale responses.