IMF, Saudi Arabia Urge Stronger Institutions and Private Sector Growth in Emerging Economies
The second annual Conference for Emerging Market Economies has underscored the need for stronger policy frameworks, deeper regional integration and private sector-led growth as emerging markets navigate an increasingly uncertain global environment.
The conference, held in AlUla, Saudi Arabia, from February 8 to 9, was jointly organised by the Saudi Ministry of Finance and the International Monetary Fund (IMF). It brought together emerging market policymakers, leading academics, and heads of regional and international financial institutions to examine shared challenges and policy priorities.
In a joint statement issued at the close of the conference, Saudi Arabia’s Minister of Finance, H.E. Mohammed Aljadaan, and IMF Managing Director, Dr. Kristalina Georgieva, said the discussions reaffirmed the importance of a dedicated global platform focused on the aspirations and vulnerabilities of emerging market economies.
They noted that deliberations over the two days focused on how emerging markets can respond to persistent global uncertainty driven by geopolitical realignments, changing trade patterns and rapid technological advancement. These developments, the statement said, highlight the urgency of strengthening institutions and policy frameworks to enhance economic resilience while positioning countries to take advantage of new growth opportunities.
One of the key takeaways from the conference was the central role of sound macroeconomic and financial policies, supported by strong institutions and effective governance. According to the statement, experiences across several emerging markets demonstrate that credible policy frameworks and institutional reforms have contributed to better inflation outcomes, financial stability and sustained access to markets, even amid heightened global shocks.
The conference also highlighted the need for emerging markets to move beyond stabilisation towards a new phase of reforms focused on delivering higher, more durable and more job-intensive growth. Unlocking private sector potential was identified as critical to this effort, including through deeper financial markets, reduced barriers to entrepreneurship and investment, and the strategic use of artificial intelligence supported by investments in digital infrastructure and skills development for young people.
In addition, participants stressed that shifting global trade and investment dynamics make deeper intra-regional and inter-regional integration increasingly important. Strengthening trade ties and regional cooperation were identified as key levers for emerging markets seeking to adapt to the evolving global economic landscape.
The statement concluded by welcoming the strong commitment shown by emerging market economies to collaborate, share lessons and act decisively in the face of global challenges. The co-hosts expressed optimism about sustaining the momentum generated in AlUla and building on the discussions at future editions of the Conference for Emerging Market Economies.
