Prime Highlights
- Emerging and developing economies are now the main drivers of global economic growth, marking a clear shift away from reliance on advanced economies.
- Saudi Arabia is using the AlUla Conference to bring emerging markets together and strengthen their role in global financial decision-making.
Key Facts
- Emerging markets account for nearly 60% of global GDP in purchasing power terms and contribute around 70% of global economic growth.
- More than half of low-income countries face the risk of debt distress, while global trade growth remains below pre-pandemic levels.
Background:
Emerging and developing economies are increasingly shaping the trajectory of global growth, even as they face mounting financial and geopolitical pressures, Saudi Arabia’s Finance Minister Mohammed Al-Jadaan said on Saturday at the opening of the AlUla Conference for Emerging Market Economies.
Speaking to global policymakers and financial leaders, Al-Jadaan pointed to a major change in the world economy, saying emerging markets now play a much bigger role than they did 20 years ago. Since 2000, their contribution to global output has more than doubled, reflecting a steady transfer of growth momentum away from advanced economies.
According to the minister, emerging and developing economies currently account for nearly 60 percent of global gross domestic product when measured in purchasing power terms and generate about 70 percent of global economic growth. He added that the world’s 10 largest emerging economies, together with the G20, are responsible for more than half of global expansion.
Despite their increasing importance in the global economy, Al-Jadaan said emerging markets are dealing with serious challenges. He noted that over half of these nations face the risk of debt trouble, while global trade growth is still much weaker than before the pandemic.
He said sustained growth depends on economic stability, strong fiscal policies and careful debt management. Referring to Saudi Arabia’s reform journey, Al-Jadaan stressed that policies only succeed when they are properly implemented and that effective institutions are key to long-term reforms.
Launched in 2025, the AlUla Conference seeks to unite emerging economies by encouraging policy coordination and giving them a stronger voice in global financial decisions. This year’s event brings together finance ministers, central bank governors, leaders of international financial institutions and economic experts.
International Monetary Fund Managing Director Kristalina Georgieva echoed the cautious optimism, saying emerging markets are growing faster than advanced economies but remain vulnerable to future shocks due to depleted fiscal buffers and rising spending pressures. She urged governments to promote private sector-led growth and deepen economic integration to sustain momentum.
China’s Finance Minister Lan Fo’an also addressed the gathering, warning of rising global fragmentation and calling for reforms to global economic governance that better reflect the needs of developing nations.
