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AlUla Conference for Emerging Market Economies’ Main Features

Published

6 hours ago

24th February 2025

Huda Az

The AlUla Conference on Emerging Markets, sponsored by the Saudi Ministry of Finance and the International Monetary Fund, began on April 16.

The Saudi Ministry of Finance and the International Monetary Fund organised the AlUla Conference on Emerging Markets, which began on April 16^th, in the AlUla Governorate’s “Maraya” Hall.

It ended on Monday, the 17^th, after accomplishing its objectives of fostering communication and collaboration to tackle the economic obstacles emerging markets face in the context of the global economy’s structural changes.

An elite group of global experts and decision-makers attended the conference, which covered several important subjects, such as sovereign debt management, the role of technology and artificial intelligence in promoting economic development, monetary and financial policies, and the significance of international cooperation in achieving economic stability.

Insights on Emerging Markets

The first day of the conference was jam-packed with events, including an opening address, a keynote address on “Emerging Markets in the Shadow of Structural Transformations in the Global Economy,” and discussions of the difficulties brought on by economic uncertainty and external shocks. It also covered the effects of high debt and technological advancements on monetary policies.

Saudi Finance Minister Mohammed Al-Jadaan emphasised the importance of creating a global framework for restructuring sovereign debt in his opening remarks. He pointed out that, according to World Bank reports, improving the economic conditions of emerging markets could save $1 trillion worldwide.

Al-Jadaan continued: “We will look into ways to solve the shared issues we have to create a more robust, sustainable, and inclusive global economy for all nations and peoples.”

The Managing Director of the International Monetary Fund, Kristalina Georgieva, stressed in her address the growing significance of cross-border economic possibilities and the necessity of adapting to these developments.

She stated: “We need to find new ways to improve the performance of emerging markets. We understand our duty in this regard and will keep collaborating with our partners to guarantee a secure and successful economic future for all.”

The AlUla Conference on Emerging Markets Economies featured speeches from all the participants. Iranian Finance Minister Abdolnaser Hemmati noted that the conference’s primary objective is to improve developing markets’ resilience and fortify international economic ties.

Leveraging Bilateral Relations for Growth

Qatari Finance Minister Ali bin Ahmed Al Kuwari pointed out the abundance of opportunities in emerging markets, citing nations like Egypt and Morocco, while Turkish Central Bank Governor Fatih Karahan stated the central bank’s willingness to address the risks brought on by lowering interest rates.

Moreover, Russian Finance Minister Anton Siluanov underlined the importance of countries understanding their economic problems and said his country is ready to restructure foreign debts.

The key to lowering economic risks, he said, is prudent fiscal policy, but putting it into practice presents some difficulties, including striking a balance between income and expenses, particularly during emergencies.

Further, the Governor of the Chinese Central Bank, Pan Gongsheng, reaffirmed China’s intention to implement a proactive fiscal policy and loosen monetary policy to improve policy measures’ ability to address the economic cycle.

Priorities to support the conflict-affected economies of the region, with a focus on Syria, were determined at a roundtable with the heads of international financial institutions, the Syrian Foreign Minister Asaad Al-Shaibani and the region’s finance ministers held on the fringes of the conference.

The meeting’s conclusions included the necessity of continuing to diagnose economic and social problems, evaluating humanitarian needs and rebuilding, and strengthening capacity development through quick actions by the World Bank and the International Monetary Fund. Additionally, it highlighted how crucial it is to obtain funds from the international community to support reform activities.

Reactions from Economic Experts and Analysts

The Yemeni government inked a deal with the Arab Monetary Fund on April 26^th to restructure its debts on the fringes of the summit. This arrangement was part of the $1 billion Saudi-sponsored economic program.

A session on “Resilience of the Financial System in Emerging Markets,” which addressed strategies to improve financial stability in the face of global economic changes, marked the end of the first day’s events.

The AlUla Conference on Emerging Markets Economies reopened on Monday, February 17, 2025, with a crucial session titled “Dealing with Trade Tensions and Uncertainty.”

Participants discussed the policies required to improve trade and investment flows and reviewed the effects of geopolitical challenges on global trade and investment.

The finance ministers of several nations, including Nigeria’s Adebayo Olawale Idun, Morocco’s Nadia Fettah, and Ukraine’s Sergei Marchenko, participated in the session in considerable numbers. They discussed how to improve economic cooperation in the current environment and adjust to global changes.

Artificial intelligence-driven economic revolutions, as well as the growth opportunities and challenges faced by emerging market countries, came up during a session titled “Productivity in Emerging Market Economies: Challenges and Opportunities.” Santiago Levy from the Brookings Institution, Federico Sturzinger, Argentina’s Minister of Government Transformation, and Saudi Arabia’s Minister of Economy and Planning, Faisal Al-Ibrahim, attended the meeting.

The Saudi Minister of Economy and Planning confirmed during the session that the Kingdom’s innovation and economic diversification strategy has been successful in drawing in investments and generating the necessary momentum.

He also noted that Saudi Arabia wants to lead the world in promoting technology and knowledge building, as the shift from low to middle-income opens up new growth opportunities.

Redefining Saudi Arabia’s Economic Landscape

Crown Prince Mohammed bin Salman’s audacious decision to unleash the full potential of the economy reflects long-term thinking to move away from dependence on oil, Minister Al-Ibrahim added.

In addition, he clarified that, with a long-term artificial intelligence plan that has been adjusted to stay up with advancements, creative innovation begins in the private sector. The Kingdom has a highly competitive capacity that makes it a key part of global value chains.

The Saudi Minister of Finance underscored at the conference’s closing session the necessity of developing economies demonstrating their role and significance in the global arena. Also, the significance of the conference in representing these nations’ interests to international organisations.

He also noted the need to address the issues that advanced countries face, pointing out that specialists at the International Monetary Fund’s regional office in Riyadh are qualified to offer support in this regard.

The AlUla Conference on Emerging Markets Economies came to a successful conclusion after two days of talks and the sharing of ideas and perspectives. This was because the conference gave a powerful forum for discussing the difficulties and goals of emerging economies, and the Saudi experience with growth and change contributed qualitative value to the discussions.

If these activities continue, it appears that there will be plenty of chances in the future to improve international economic cooperation and understanding.