Saudi Arabia Highlights Trade And Investment Importance For Emerging Economies

[Mudhab]

Saudi Arabia's Minister of Economy and Planning, Faisal Alibrahim, emphasized that trade and investment are key drivers for the sustained growth of emerging market economies. Speaking at the opening of the second edition of the AlUla Conference for Emerging Market Economies, Alibrahim highlighted the importance of building resilient economies to navigate ongoing global challenges.

During the panel titled "Paper Session 1: Resettling Global Trade," Alibrahim stressed that global trade is far from ending. "Trade and investment are central to many economies, especially emerging markets, and countries will continue pursuing avenues for trade to flow," he noted, highlighting the ongoing necessity of international economic engagement.

Alibrahim also discussed the importance of economic reallocation in today's shifting global market. He explained that the traditional rules-based market system is under strain, and resilience is increasingly important. Countries with strong institutional capabilities, he argued, are better positioned to withstand external shocks and adapt to changes in the global economy.

The minister contrasted emerging market economies with advanced economies, noting that while advanced nations benefit from buffers and policy flexibility, emerging markets face a stronger imperative to adapt swiftly. "Emerging markets cannot rely on the same flexibility; they must innovate and adjust to survive economic pressures," Alibrahim said, underlining the need for proactive adaptation.

On US-China trade relations, Alibrahim observed that tensions between the two countries are unlikely to reduce global trade. Instead, they drive ongoing reallocation that requires countries to adjust. He emphasized that such moments of pressure are not failures but indicators of misalignment between institutions and an evolving economy, requiring innovative and preemptive policy-making.

Alibrahim concluded by stressing that countries with robust institutional frameworks are better prepared for global economic disruptions. "Institutional strength will determine outcomes, as countries that have invested in effective setups will be ready to handle challenges and seize opportunities," he said, highlighting the value of strategic economic planning.

Other speakers, including Argentina's Federico Sturzenegger and Ethiopia's Eyob Tekalign, shared insights on trade shifts and macroeconomic reforms. Sturzenegger noted significant changes in US import patterns from China over the past decade, while Tekalign highlighted Ethiopia's efforts to reduce inflation and improve economic readiness. The conference, hosted by the Saudi Ministry of Finance and the IMF, gathered global economic leaders to discuss emerging markets' challenges and opportunities in trade, finance, and policy transformation.


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