RIYADH: The world economy is set to maintain steady growth in 2025, buoyed by resilient fundamentals despite market volatility and structural shifts, according to Citigroup’s Global Chief Economist Nathan Sheets. 

Speaking at the Capital Markets Forum in Riyadh, Sheets outlined key themes shaping the year ahead, focusing on global economic resilience, normalization of inflation and interest rates, and exceptionalism in market performance. 

“During the year ahead, the relatively solid fundamentals of the global economy are likely to transcend any kinds of uncertainties that we face,” Sheets said during the event, which runs from Feb. 18 to 20. 

Emerging markets also took center stage, with Raman Subramanian, managing director and global head of index research and development at MSCI, emphasizing the growing role of the Gulf Cooperation Council in global indices. 

“Digging deeper into the MSCI Emerging Market Index, you see the weight of the GCC has gone from about 1.5 percent to about 7 percent today,” he said. 

Subramanian also noted technology’s rising prominence in global benchmarks, with AI-adjacent sectors now accounting for over 30 percent of industry weight. 

Meanwhile, Ahmed Shams El-Din, managing director and head of global research at EFG Hermes, described the Middle East as a promising region for growth and value creation but noted its uneven development. 

“Countries are very different in terms of economic fundamentals, in terms of the opportunities for growth and the challenges each country is facing on a standalone basis,” he explained. 

Economic diversification and non-oil growth remain central themes, with Saudi Arabia and the UAE leading the way. Shams El-Din cautioned, however, that population growth and capacity constraints could moderate the pace of expansion. 

“Capacity constraint and funding challenges are going to play out parallel to the real developments that we are seeing on the ground,” Shams El-Din said. 

Subramanian also highlighted major trends shaping global markets, including technology transformation, health care, environmental resource management, and evolving societal and lifestyle shifts. 

“The move toward renewables has really impacted the way investors are allocating to the energy sector,” he added. 

The forum, held at the KAFD Conference Center, is set to explore deeper macroeconomic trends and capital market shifts. Key sessions include discussions on the Middle East’s growing role as a financial hub and the future landscape of global markets.