The Banking Executive Issue - October 2025 Issue

H.E. DR. JIHAD AZOUR, DIRECTOR OF THE MIDDLE EAST AND CENTRAL ASIA DEPARTMENT Dr. Azour’s regional press briefing provided the most detailed snapshot of MENA macro dynamics. He re- ported that growth in the Middle East, North Africa, Pakistan and the Caucasus is outperforming earlier ex- pectations, reaching 3.2% in 2025 and projected at 3.7% in 2026, sup- ported by higher oil output in ex- porters, strong tourism and remittances in importers, and still-ro- bust domestic demand. Inflation is easing in most MENA economies, al- though it remains elevated in parts of Central Asia. On the new U.S. tariffs, Azour down- played immediate direct impacts, cit- ing limited trade volumes and the exclusion of oil and gas from the measures. But he cautioned that in- direct effects—through shifting trade routes, global demand and financial conditions—could be significant over time, urging Gulf states to lever- age the AI and trade reconfiguration wave to accelerate diversification and regional integration. He also fielded detailed questions on Egypt and Lebanon, highlighting the progress of Egypt’s reform program in reducing inflation and public debt and strengthening the role of the pri- vate sector, while stressing the need for continued governance and state- ownership reforms. MRS. CHRISTINE LAGARDE, PRESIDENT, EUROPEAN CENTRAL BANK ECB President Christine Lagarde’s in- terventions, especially at the IMFC and a high-profile panel on the global economy, were closely watched by markets. She empha- sized that the ECB’s rate-cut cycle would be “gradual and data-depen- dent,” balancing progress on infla- tion against lingering wage and services pressures. Lagarde also warned that renewed U.S. tariffs and broader industrial policy shifts risk further fragmenting trade and invest- ment, complicating monetary policy transmission in Europe. 2025 IMF–World Bank Meetings In a separate press encounter, Al- Jadaan made headlines by confirm- ing that many investments were being finalized for Syria. “We stand with Syria… they are genuine in their efforts to do the right thing for their people,” he said, describing a wave of private sector interest in recon- struction. the BANKING EXECUTIVE 48 ISSUE 202 OCTOBER 2025