Business leaders gathered in Saudi Arabia for Future Investment Initiative sound the alarm on high interest rates and geopolitical conflicts, highlight AI’s positive role

In Riyadh, a city in Saudi Arabia, leaders from the finance and business sectors convened for a significant meeting. They discussed the numerous challenges the world is currently grappling with, including geopolitical conflicts, economic uncertainties, high inflation, and climate issues. However, they also highlighted potential solutions to these problems. They believe that understanding human needs, fostering global collaboration, and harnessing the power of artificial intelligence (AI) technology could serve as catalysts for positive change. These leaders, along with policymakers, academics, non-governmental organizations, entrepreneurs, innovators, scientists, activists, and media representatives, are attending the seventh edition of the Future Investment Initiative (FII). This three-day forum is designed to help investors recalibrate their strategies in light of the current global situation. Yasir Al-Rumayyan, the governor of Saudi Arabia's sovereign wealth fund, Public Investment Fund, noted that the global economy has enjoyed the benefits of almost free money for nearly 15 years due to historically low interest rates. However, the situation is now changing. Central banks worldwide are tightening their monetary policies, leading to growing concerns about a potential debt crisis, high interest rates, and the impact of war on the global oil market. Al-Rumayyan emphasized that businesses and governments must adapt to this new reality. This rapid rise in interest rates, the fastest in 15 years, has significant implications for policymaking. The forum also saw the participation of other notable figures such as Ray Dalio, Larry Fink, Ajay Banga, Jamie Dimon, Jane Fraser, Noel Quinn, David Solomon, and Stephen Schwarzman. They engaged in a panel discussion titled 'Board of Changemakers: Navigating New Norms. ' Quinn highlighted that geopolitics have affected China's exports and underscored the need for resilience in supply chains and diversification. Despite these challenges, he expressed confidence in China's growth opportunities. Fink predicted that interest rates would remain high for an extended period, while Dalio expressed pessimism about the global economy's prospects next year. Contrarily, Al-Rumayyan remained optimistic despite the high interest rates. He stressed that technology, particularly AI, should spearhead change. He noted that approximately 70% of all companies would adopt at least one type of AI by 2030. If used responsibly, AI has the potential to foster a more inclusive society. However, achieving this requires global collaboration and internationally aligned regulations and governance. Al-Rumayyan, who also chairs the Saudi Arabian Oil Group, emphasized the importance of a data-driven approach in reducing carbon footprints. He mentioned that Saudi Aramco has implemented several programs to combat emissions. He also called on large global organizations like the United Nations and World Bank to collaborate with countries to make AI more inclusive. Banga, from the World Bank, warned that geopolitical tensions pose the most significant threat to the world economy. However, he also noted that risks are dynamic and can shift rapidly, so other potential threats should not be overlooked. He called for cooperation among governments willing to understand the current challenges faced by the Global South. The World Bank and the Jeddah-based Islamic Development Bank signed an agreement to co-finance multilateral development banks working on various projects, including food, water, climate, clean fuel, youth empowerment, and gender equity. Banga concluded by emphasizing that the world's problems are too large to be solved in isolation, necessitating collective action.