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Future Investment Initiative: From ‘Davos in the Desert’ to a Platform for Untangling Global Crises

A view of the audience during one of the sessions at the eighth edition of the Future Investment Initiative conference (Asharq Al-Awsat). 
A view of the audience during one of the sessions at the eighth edition of the Future Investment Initiative conference (Asharq Al-Awsat). 
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Future Investment Initiative: From ‘Davos in the Desert’ to a Platform for Untangling Global Crises

A view of the audience during one of the sessions at the eighth edition of the Future Investment Initiative conference (Asharq Al-Awsat). 
A view of the audience during one of the sessions at the eighth edition of the Future Investment Initiative conference (Asharq Al-Awsat). 

The annual Future Investment Initiative (FII) is evolving from an investment forum into a powerful geoeconomic and diplomatic platform. In the midst of unprecedented geopolitical and economic transformations, Riyadh is consolidating its status as an indispensable global hub, a place where future-shaping decisions are made and urgent diplomatic solutions take form.

As the Saudi capital hosts the ninth edition of the FII - bringing together some of the world’s most influential figures in finance and technology to chart a roadmap for sustainable growth and artificial intelligence - it is simultaneously witnessing an intense wave of diplomatic activity, including high-level coordination meetings on the two-state solution.

Riyadh is positioning itself as a bridge between global capital, development imperatives, and the requirements of regional stability and peace.

The ninth edition of the forum opened with closed sessions on Monday, with the official launch scheduled for Tuesday under the theme “The New Compass: Unlocking New Frontiers for Growth.” More than 8,000 participants and 650 prominent speakers are taking part in 250 discussions.

What began years ago as an investment gathering with a local lens - dubbed “Davos in the Desert” - has now matured into a global geoeconomic platform designed to navigate and address complex crises.

This transformation comes at a critical time for the world economy. Trade tensions, including US tariffs, and geopolitical instability in Europe and the Middle East have created high levels of uncertainty. Global growth faces mounting risks.

By contrast, Saudi Arabia has charted a different course, demonstrating strong resilience against external shocks and an ability to adapt quickly to changing conditions. This strength is supported by the steady expansion of its non-oil sectors, a cornerstone of its economic diversification strategy, making the Kingdom a reliable anchor for global capital in an increasingly fragmented world.

The initiative also functions as a bridge for global capital and a key platform for investors interested in the Middle East. Globally, discussions on artificial intelligence, sustainable energy, and innovation are already shaping capital flows and influencing the valuations of major companies.

For Saudi Exchange (Tadawul), the event acts as a significant catalyst. Direct engagement between the Public Investment Fund (PIF) and global investment banks enhances awareness of the Saudi market’s depth and liquidity, aligning with the Kingdom’s goal of increasing its weight in global indices and paving the way for large upcoming IPOs.

This year, the forum carries unprecedented geopolitical weight. It takes place at a moment when regional focus is shifting from conflict to reconstruction and development. High-level diplomatic attendance, coordination meetings on the two-state solution, and discussions addressing global conflicts all underscore Riyadh’s emerging role as a mediator capable of linking political stability with economic investment.

One of the forum’s headline sessions explores three key themes: progress, innovation, and fragmentation. It addresses questions of market efficiency, the environmental cost of economic expansion, the responsible use of AI, technological entrepreneurship, climate resilience, and how to secure global supply chains in a world defined by economic competition and digital transformation.

Yasir Al-Rumayyan, Governor of the PIF and Chairman of the Future Investment Initiative Institute, will officially open the forum, presenting the fourth edition of the “Priority Compass.” This extensive survey draws on the views of tens of thousands of participants from 32 countries, representing 66 percent of the world’s population. Its aim is to guide decision-makers toward citizen-centered solutions.

The final day of the event, known as Investment Day, will be devoted to signing deals, presenting high-growth projects and emerging technologies, and fostering connections between founders and global investors. Asset managers overseeing more than $100 trillion in assets are expected to participate.

Among the prominent speakers are Laurence D. Fink of BlackRock, Jamie Dimon of JPMorgan Chase, David Solomon of Goldman Sachs, Bruce Flatt of Brookfield Asset Management, Bill Winters of Standard Chartered, Jane Fraser of Citigroup, Jenny Johnson of Franklin Templeton Investments, Ray Dalio of Bridgewater Associates, Stephen A. Schwarzman of Blackstone, Cathie Wood of ARK Invest, and Alex Clavel of SoftBank Vision Fund. Also attending are CEOs from Barclays, Nasdaq, Temasek Holdings, and China Investment Corporation.

Behind closed doors, Monday’s sessions delved into cutting-edge technological and economic shifts, from quantum computing breakthroughs to digital currencies and carbon accounting. One session, “Can We Win the Quantum Computing Race and Turn It into Profit?”, examined rapid developments in quantum hardware and software and noted that governments worldwide have committed more than $40 billion to research and development in this field.

Another session, supported by Saudi Aramco, reviewed new methods to measure product-level carbon emissions, aiming to bring greater transparency to corporate climate performance. A third session explored how digital currency infrastructure could redefine global finance, with discussions on stablecoins, central bank digital currencies, and the role of major institutions such as Bank of America, PayPal, and Stripe in driving cross-border payment solutions.

 

 

 

 

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IMF: Saudi Transformation on Track Supported by Deeper Reforms

The Saudi capital, Riyadh (Reuters)
The Saudi capital, Riyadh (Reuters)
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IMF: Saudi Transformation on Track Supported by Deeper Reforms

The Saudi capital, Riyadh (Reuters)
The Saudi capital, Riyadh (Reuters)

Saudi Arabia enters a new phase described as one of the most sensitive and influential in the course of its economic transformation, according to the International Monetary Fund (IMF), which said next year will be pivotal for the Kingdom thanks to deeper reforms implemented throughout the past years.

In a “country focus” released last month, Amine Mati and Yuan “Monica” Gao Rollinson, both in the IMF’s Middle East and Central Asia Department, showed that growth in Saudi Arabia has been fueled not only by investment, but also by people as private sector job creation has surged, particularly among women while unemployment rates reached record-lows.

The two economists said the resilience shown in 2025 underscores the progress already achieved in reducing the economy’s exposure to oil fluctuations.

They said that despite oil prices falling nearly 30% below their 2022 peak, the non-oil economy maintained strong momentum.

“This strength reflects the impact of Saudi Vision 2030 reforms—diversification gaps with emerging markets have narrowed, and the business environment now rivals that of advanced economies,” the two IMF experts said.

At the same time, Saudi Arabia is strategically shifting some of its spending priorities, with some of its investment focus moving toward AI and advanced technologies as part of its broader effort to diversify the economy.

The IMF paper said deeper reforms—including the steadfast implementation of recently enacted laws that ease access for foreign investors— will help foster an investor-friendly business environment and attract more private investment.

At the banking sector, it noted that the Saudi Central Bank’s continued vigilance in monitoring emerging risks will be critical in preventing vulnerabilities from building up.

“As conditions evolve, the central bank should continue to proactively deploy prudential measures to keep the financial system resilient,” it said.

Over time, deepening capital markets—so that companies can raise more financing through bonds and equity—will help ease pressure on banks, facilitate credit for small and medium enterprises, and create a more balanced mix of funding for the economy.

Looking ahead, Saudi Arabia faces a new test: how to sustain reform momentum in an era of potentially lower oil revenues without slipping back into the stop-and-go cycles that followed past oil booms, the two IMF economists said.

They said fortunately, Saudi Arabia approaches this challenge from a position of relative strength thanks to public debt-to-GDP ratios that remain low while foreign assets are still ample.

At the same time, the IMF noted that the sustainability of such progress relies on Saudi Arabia’s ability to anchor spending decisions within a consistent, multi-year framework will be vital for maintaining long-term sustainability.

The Fund showed that sustaining Saudi Arabia’s growth momentum will increasingly depend on two engines: a skilled workforce and a vibrant private sector.

Deeper reforms—including the steadfast implementation of recently enacted laws that ease access for foreign investors— will help foster an investor-friendly business environment and attract more private investment.

“The sovereign wealth fund can act as a complementary catalyst here by spurring new projects and partnerships, while making sure it leaves ample room for both domestic and international private investors to thrive,” the IMF paper noted.

Last October, the IMF had raised Saudi Arabia's economic growth forecast to 4% for 2026, supported by the expansion of non-oil activities and higher oil prices.

Meanwhile, the Saudi Finance Ministry forecasted real GDP growth of 4.6% in 2026, driven by non-oil activities and private-sector leadership.

Business

Iraq’s Oil Minister Says Talks Ongoing with Chevron on West Qurna 2 Oilfield

A Chevron logo at the Chevron building in Houston, Texas, US August 19, 2025. (Reuters)
A Chevron logo at the Chevron building in Houston, Texas, US August 19, 2025. (Reuters)
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Iraq’s Oil Minister Says Talks Ongoing with Chevron on West Qurna 2 Oilfield

A Chevron logo at the Chevron building in Houston, Texas, US August 19, 2025. (Reuters)
A Chevron logo at the Chevron building in Houston, Texas, US August 19, 2025. (Reuters)

Iraq's oil minister said on Saturday that talks were ‌ongoing ‌with ‌US ⁠major Chevron regarding ‌the Lukoil-operated West Qurna-2 field, the Russian company's ⁠largest foreign ‌asset.

Chevron ‍and ‍Exxon Mobil ‍are among potential bidders for Lukoil's overseas assets following US ⁠sanctions on the Russian oil producer.

Business

China’s Consumer Inflation Scales 3-Year High but Deflation Battle Far from Over

Chinese girls dressed in Qing Dynasty attire take pictures outside the Forbidden City in Beijing, China, Wednesday, Jan. 7, 2026. (AP)
Chinese girls dressed in Qing Dynasty attire take pictures outside the Forbidden City in Beijing, China, Wednesday, Jan. 7, 2026. (AP)
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China’s Consumer Inflation Scales 3-Year High but Deflation Battle Far from Over

Chinese girls dressed in Qing Dynasty attire take pictures outside the Forbidden City in Beijing, China, Wednesday, Jan. 7, 2026. (AP)
Chinese girls dressed in Qing Dynasty attire take pictures outside the Forbidden City in Beijing, China, Wednesday, Jan. 7, 2026. (AP)

China's annual consumer price inflation accelerated to a 34-month high in December, but the full-year rate slumped to the lowest in 16 years while producer deflation persisted, backing market expectations for more stimulus to shore up soft demand.

Imbalances in the $19 trillion economy have worsened over the past year even as growth is on course to meet Beijing's target of "around 5%" for 2025, buoyed by policy support and resilient goods exports.

US President Donald Trump's global trade war has added to persistently soft consumer demand, which has remained a drag on confidence and growth for years amid a prolonged property crisis.

The December consumer price index (CPI) rose 0.8% from the same month in 2024, National Bureau of Statistics (NBS) data showed on Friday, matching expectations in a Reuters poll and perking up from the 0.7% increase in November.

The rise was mainly driven by food prices, especially those of fresh vegetables and beef, which expanded 18.2% ‌and 6.9% respectively, Dong ‌Lijuan, a statistician at NBS, said in a statement. Pre-New Year holiday shopping ‌and ⁠supportive policies also helped ‌boost consumer prices, Dong added.

Chinese policymakers have repeatedly pledged to support a rebound in prices with monetary policy and have cracked down on excessive competition. They have also vowed to boost people's income to unleash consumption potential and better align the country's supply and demand.

Yet, the underlying demand impulse in the economy remains weak.

"Despite expectations of a recovery, inflation remains relatively low and should not preclude further monetary easing this year," said Lynn Song, ING's chief economist for Greater China.

Zichun Huang, China economist at Capital Economics, said the elevated headline CPI was not due to the government campaign to curb so-called "involution", adding that overcapacity and deflationary pressures will persist in the coming ⁠years in the absence of stronger demand-side measures.

WHERE HAS INFLATION GONE?

Indeed, for the entire 2025, consumer price growth was flat, well below the "around 2%" goal policymakers were ‌aiming for, a sign that stimulus measures, such as a consumer goods trade-in scheme, ‍have yielded only modest results in lifting sentiment and containing ‍deflationary pressure.

Prices of gold jewellery surged 68.5%, NBS data showed.

Core inflation, ‍which excludes volatile prices of food and fuel, rose 1.2% year-on-year last month, unchanged from November.

Goldman Sachs economists estimate that core price gauge excluding gold prices edged down in December from the prior month.

Annual growth in China's consumer prices has for years failed to meet policymakers' targets as the economy struggled to recover from the pandemic.

A prolonged property market crisis and a weak job market have contributed to lackluster household demand as well as overcapacity and price competition among producers.

On a monthly basis, CPI climbed 0.2% in December, compared with a 0.1% dip the previous month and a forecast for a 0.1% rise.

The producer ⁠price index (PPI) fell 1.9% year-on-year in December, remaining in a deflationary funk for more than three years even as it eased from a 2.2% drop in November. The gauge was expected to have fallen 2% in the Reuters poll.

NBS's Dong attributed the moderation in factory-gate deflation to both global commodity prices, including rising prices of non-ferrous metals, and policies for controlling capacity in key industries.

Capital Economics' Huang, however, said there hasn't been "any fundamental improvement in overcapacity."

"Prices of consumer durables continued to fall at a faster pace than during the depths of the global financial crisis, highlighting that the issue of excess supply remains unresolved in much of the manufacturing sector," she said.

For the whole year, PPI fell 2.6%.

Given the slowdown in economic momentum in the second half of last year, the market is watching for signs of additional government support measures in 2026 as top leaders have committed to pursuing a more proactive macroeconomic policy framework.

The central government has allocated 62.5 billion yuan ($8.95 billion) from special treasury bond proceeds to local governments to ‌keep funding the consumer goods trade-in scheme in 2026.

The government has also pledged to flexibly use monetary policy tools, such as cuts to interest rates and banks' reserve requirement ratio, to keep liquidity ample and spur growth.