Navigating economic transitions: Reflections on the Qatar Global Economic Forum

The 3rd Qatar Economic Forum, powered by Bloomberg, held in Doha this week, witnessed global leaders from business and political arenas echoing the necessity for increased cooperation in an age of growing polarity. Over the span of three days, approximately 1,000 CEOs and heads of state assembled to deliberate on pressing economic challenges that are being addressed in boardrooms worldwide.

Robert Friedland, the Founder and Executive Co-Chairman of Ivanhoe Mines, a Canadian mining company, underscored the vigorous debate surrounding the efficacy of energy transition. Friedland explained that the world can’t transition to cleaner energy sources without some reliance on hydrocarbons or nuclear power, due to the necessity of traditional energy sources like liquified natural gas in the production of metals such as copper, which are fundamental to the construction of electric vehicles and the evolution towards cleaner energy forms.

Friedland estimated that it would necessitate at least a generation to reach a stage where the world can depend entirely on clean power. Countries from the Gulf Cooperation Council, he suggested, who have traditionally been energy leaders, will play a crucial role in this transition.

Contrastingly, Qatari Energy Minister Saad Al-Kaabi expressed concern over the vigorous push for energy transition policies. He suggested that such measures are destabilising the fossil fuel industry, which could have critical repercussions for many regions, including Europe. He warned of a future shortage in gas due to aggressive energy-transition strategies.

The global economy’s current state was another dominant topic at the Doha event. Projections from the International Monetary Fund (IMF) suggest a slowdown in the growth of global gross domestic product, falling from 3.4% in 2022 to 2.8% in 2023, alongside fears of a potential US default. Nonetheless, IMF Managing Director Kristalina Georgieva expressed confidence at the event that the US would avoid a default.

The impact of the evolving cryptocurrency market was also addressed. Peter Smith, the co-founder and CEO of Europe-based Blockchain.com, described significant changes within the crypto market and a surge in people wanting to trade opposite a regulated trusted institution. Amid growing consumer interest in stable coins, Blockchain.com has seen rapid growth in markets like Nigeria, Ghana, Colombia, Argentina, and Ukraine.

Additional critical issues discussed at the Qatar Economic Forum included the controversial ban on TikTok in Montana, US, which TikTok CEO Shou Zi Chew criticised as “unconstitutional”, and the difficulties faced by Qatar Airways in ramping up business in China post-COVID-19, as shared by its CEO Akbar Al Baker.

Al Baker also expressed doubt over the aviation industry’s ability to meet the emissions goals set by the 2015 Paris Agreement. He highlighted the lack of sustainable aviation fuel production, casting uncertainty over the feasibility of achieving net-zero emissions by 2050.

The Qatar Economic Forum proved to be an engaging platform for the exploration of a multitude of contemporary economic issues. The discussions held promise to pave the way towards greater cooperation and a more sustainable and stable global economic landscape.