Saudi finance minister warns current supply shocks exceed post-COVID impact

2026-03-26 - 16:40

MIAMI — Saudi finance minister Mohammed Al-Jadaan warned that recent global supply chain disruptions have surpassed the impact seen after the COVID-19 pandemic, cautioning that continued geopolitical tensions could trigger deeper economic consequences worldwide.Speaking at FII PRIORITY Miami 2026, Al-Jadaan said the current disruptions affecting global trade and logistics are “beyond what we have seen even post-COVID,” highlighting growing risks that have yet to be fully reflected in global markets.He stressed that while oil markets dominate headlines, the real pressure is emerging across critical industrial sectors, including refined products, fertilizers, steel, aluminum, and petrochemicals.“It’s not really oil that has been severely impacted,” he said. “It’s the broader supply chain that needs urgent attention.”Al-Jadaan urged a swift resolution to regional tensions to prevent further strain on the global economy, noting that prolonged disruption could lead to more severe consequences if left unaddressed.Despite geopolitical uncertainties, he said economic activity in the Gulf remains stable at the ground level, advising investors to “mute the media noise” to better understand actual market conditions.Turning to investor sentiment, Al-Jadaan outlined four key factors driving capital flows: certainty, resilience, growth potential, and long-term planning, alongside risk-adjusted returns.He said Saudi Arabia has demonstrated these attributes through decades of strategic investment, citing the Kingdom’s East-West pipeline as a long-term infrastructure project that is now playing a critical role in maintaining global oil supply stability.“We invested for 50 years without return,” he said. “And today we are using that infrastructure to manage global supply.”Al-Jadaan highlighted Saudi Arabia’s post-pandemic economic performance, noting that the Kingdom achieved stronger-than-average GDP growth compared to G20 economies, despite spending a lower share of GDP on stimulus measures.“Saudi economy came as one of the best globally after COVID,” he said.He added that countries with proactive, long-term strategies — rather than reactive policies — are better positioned to absorb economic shocks and attract sustained investment.The finance minister also underscored the importance of human capital and technological readiness, pointing to Saudi Arabia’s young, tech-savvy population as a key driver of future growth.“If you visit Saudi Arabia today, the positive energy in the people is incredible,” he said.