EBRD Plans EUR 5 Billion Push for Conflict-Hit Middle East Economies in 2026

The European Bank for Reconstruction and Development (EBRD) has announced plans to deploy EUR 5 billion to support economies impacted by the ongoing Middle East conflict, targeting both directly affected countries and neighbouring regions facing economic spillovers.

The Bank’s intervention will focus on key economies including Iraq, Jordan, Lebanon and the West Bank and Gaza. Additional support will extend to neighbouring countries such as Egypt, Turkey, Armenia and Azerbaijan, where economic disruptions linked to the conflict are being felt.

According to the Bank, the conflict has already led to significant economic strain across the region, disrupting trade routes, triggering volatility in energy and commodity markets, and weakening investor confidence. The overall scale of the impact remains uncertain and will depend on how the situation evolves.

The EBRD’s response will be implemented in two phases. The first phase will prioritise immediate relief measures aimed at stabilising financial systems, supporting economic activity and ensuring the continuity of essential services. The second phase will focus on long-term recovery, with investments designed to strengthen resilience, promote sustainable growth and rebuild economic confidence.

Odile Renaud-Basso said the institution would step up countercyclical support during a period of heightened uncertainty, emphasising its role in sustaining economies and businesses while maintaining sound financial discipline.

Key elements of the strategy include liquidity support for energy utilities to enhance energy security, financing for state-owned enterprises to ensure uninterrupted delivery of essential goods and services, and working capital support for private sector firms affected by disruptions in energy and agrifood markets.

The Bank also plans to invest in infrastructure development, trade connectivity, food security and digital systems to support long-term economic stability. In parallel, it will provide policy engagement, technical assistance and advisory services to governments, businesses and small and medium-sized enterprises.

The EBRD said it would coordinate closely with governments, international financial institutions and development partners, while mobilising donor support to maximise the effectiveness of its response.

The Bank has an established presence in the region, having invested more than EUR 26.5 billion across 489 projects in the southern and eastern Mediterranean since 2012. In Turkey, it has committed over EUR 23 billion since 2009, primarily in the private sector.