ADB announces support package for developing countries affected by Middle East conflict

The Asian Development Bank (ADB) on Tuesday announced a financial support package to help its developing member countries (DMCs) mitigate the economic and financial impacts resulting from the conflict in the Middle East. In a news release, ADB President Masato Kanda said, “ADB will deliver rapid, flexible, and scalable assistance to help countries manage immediate pressures and strengthen long-term resilience, notably fast-disbursing budget support and trade and supply chain finance to secure the import of essential goods, now including oil.” “This builds on our strong track record of supporting Asia and the Pacific through periods of global uncertainty,” Kanda added. According to the ADB release, the bank has ample resources to safeguard existing and planned operations while expanding emergency support in line with DMC needs, including the utilisation of its countercyclical lending buffer. “The bank is closely monitoring global market developments and their potential implications for economies across Asia and the Pacific, particularly regarding energy price volatility, inflationary pressures, and external account balances,” the release said. The conflict in the Middle East is increasing uncertainty across Asia and the Pacific. At @ADB_HQ, we are stepping up to support our developing member countries in navigating the economic and financial impacts through fast-disbursing budget support and trade and supply chain… pic.twitter.com/AJFKvzwysd — Masato Kanda (@ADBPresident) March 24, 2026 ADB’s latest analysis indicated that disruptions to shipping routes had already increased costs and delivery times, while supply risks extended beyond energy to key industrial inputs such as petrochemicals and fertilisers, with serious implications for agriculture and food production. Tourism- and remittance-dependent economies were also facing compounding vulnerabilities beyond these initial shocks, it added. “Furthermore, the conflict is increasing uncertainty and tightening financial conditions across the region, putting pressure on currencies and capital flows,” the ADB stated. In response, the bank said it was ready to deploy timely financial and technical support to help DMCs manage risks, maintain macroeconomic stability, and protect vulnerable populations. The intervention comprises two main components. “The first is fast-disbursing budget support to help DMCs facing heightened fiscal pressures, notably the use of the bank’s Countercyclical Support Facility to help governments stabilise their economies and mitigate the impact of shocks on the lives and livelihoods of those most at risk,” the ADB release said. The second component is ADB’s Trade and Supply Chain Finance Programme, which supports the private sector to ensure that critical imports, including energy and food, continue to flow. The bank has decided to reactivate support for oil imports under the programme on an exceptional basis for a limited period. This decision acknowledges that economies and populations across the region are being severely affected by the sharp rise in oil prices and ongoing supply chain disruptions, the ADB stated. The lender further stated that it had begun discussions with all severely affected DMCs on possible immediate support and would continue to work closely with governments, development partners and the private sector to ensure coordinated and effective responses aimed at maintaining economic stability and protecting the poor and most vulnerable.