Al-Ula Conference: Saudi Arabia and the IMF chart the future of emerging markets
In a move reflecting the growing role of Saudi Arabia in shaping global economic policies, the second edition of the “Al-Ula Emerging Markets Economics Conference” concluded in the historic city of Al-Ula. The Kingdom, represented by the Ministry of Finance, and the International Monetary Fund issued a joint statement affirming that adopting sound economic and financial policies, coupled with empowering the private sector, is the cornerstone for ensuring the stability and growth of emerging markets amidst rapidly changing global circumstances.
Strategic partnership to address global challenges
This announcement came at the conclusion of a conference held from February 8-9, jointly organized by Saudi Finance Minister Mohammed Al-Jadaan and IMF Managing Director Kristalina Georgieva. The event comes at a critical juncture as the global economy faces considerable uncertainty, underscoring the importance of cooperation between international financial institutions and economically influential nations like Saudi Arabia to develop a roadmap that supports developing countries and emerging markets.
The conference witnessed a remarkable attendance of elite policymakers, senior academics, and heads of regional and international financial institutions, where discussions focused on ways to enhance the economic resilience of emerging countries against external shocks.
Pillars of economic resilience: policies and institutions
The joint statement explained that the discussions focused in depth on how emerging market economies are dealing with a complex global environment resulting from geopolitical shifts and changing patterns of international trade. Both sides emphasized the following points:
- Macroeconomic policies: Emphasizing that fiscal discipline and balanced monetary policies are the first line of defense against inflation and market volatility.
- Strong institutions: International experience has shown that countries with reliable institutional frameworks and effective governance have been best able to maintain their financial stability and ensure continued access to global financial markets, even in times of crisis.
The role of the private sector and digital transformation
In discussing sustainable growth, the statement indicated that economic stability alone is insufficient; it must be coupled with structural reforms that unleash the potential of the private sector. It emphasized that deepening financial markets, removing barriers to entrepreneurship, and making bold investments in digital infrastructure and artificial intelligence technologies are crucial for creating new jobs and equipping young people with the skills needed for the future labor market.
Regional integration as an opportunity for growth
The conference also addressed the rapid shifts in global trade and investment, with the statement emphasizing that strengthening regional and interregional economic integration is no longer a luxury but an urgent necessity. This integration contributes to opening new markets and reducing reliance on traditional supply chains that may be vulnerable to disruptions.
Saudi Arabia and the International Monetary Fund concluded their statement by commending the participating countries' commitment to exchanging experiences and working together, while emphasizing the continuation of the "Al-Ula Conference" as an annual global platform to discuss emerging market issues and build on the momentum achieved in this edition to address future challenges.
