The private sector is an essential driver of new development paths

On the platform of the World Economic Forum’s annual meeting in Davos, Switzerland, held this year from January 20-24, 2025, global leaders from government, business and philanthropy will gather under the slogan “A Call for Impactful Change,” to highlight the great opportunities available to enhance resilience and sustainable development, specifically in The most affected and fragile emerging markets.

Within the framework of this meeting, a panel discussion entitled “New Catalysts for Development in the 21st Century” was held, which explored the key role played by the private sector in improving traditional aid models and dealing with the cross-cutting challenges faced by the most affected economies.
The panel was moderated by Mirek Dusek, Managing Director of the World Economic Forum, and included prominent leaders including Badr Jaafar, Special Envoy for Business and Charitable Affairs in the UAE and CEO of Crescent Enterprises; Somali President Hassan Sheikh Mohamud, Ernest Torres Cantu, Director of International Affairs at Citi, and Anna Pierde, Managing Director of the World Bank.

During this session, Badr Jaafar stressed the enormous potential that exists in emerging markets to enhance growth and flexibility and said: “Emerging markets offer us the greatest opportunity to achieve comprehensive and sustainable global progress, as they are inhabited by 85% of the world’s population and are expected to contain 80% of the global middle class by 2030. However, traditional aid models are still unable to comprehend the magnitude of the challenges we face, so the private sector must break free from the constraints of traditional methods and follow a strategic philanthropic approach with three goals: strengthening Resilience, empowering communities, and achieving tangible and sustainable long-term prosperity.”

In his speech, Jaafar pointed to the enormous potential possessed by the impact investment market, whose value currently exceeds $1.5 trillion, and to the global private wealth that amounts to $450 trillion, which carries with it exceptional growth opportunities waiting to be seized. He said: “If we look at the global market for impact investments that… Exceeding $1.5 trillion, and private wealth amounting to $450 trillion, we will realize that we have within our reach all the resources and power we need to achieve the desired radical changes. It remains for us to formulate “A framework that aligns these resources with measurable development goals, and enables us to capitalize on the innovative and entrepreneurial capabilities of emerging markets.”

The discussion highlighted the urgent need for innovative and thoughtful methodologies to address challenges in fragile emerging markets. The private sector will play a pivotal role in achieving sustainable and comprehensive development, by opening horizons for cooperation across different sectors and involving local actors. In response to the inability of traditional financing models to meet global humanitarian needs, sector leaders are focusing on moving the conversation towards innovative solutions that stimulate strategic investments capable of activating the potential of emerging economies, not only to serve their societies, but also to make these economies the nucleus of development innovations and resilience for all countries of the world.

This panel was convened as part of the World Economic Forum’s Investing in Humanitarian Aid and Resilience Initiative, which was established in 2019 to stimulate impact investments in emerging markets. This initiative brings together more than 100 partners from various sectors, to enhance the resilience of communities most vulnerable to crises. Based on a high-level dialogue chaired by former US Secretary of State Anthony Blinken, and sponsored by British Foreign Secretary David Lammy, Ilan Goldfein, President of the Inter-American Development Bank, and Borhe Brende during the General Assembly, this initiative calls for the adoption of collaborative methodologies to direct private investments towards sustainable development goals. In the most vulnerable economies.
In its 2025 session, the World Economic Forum continues to accelerate global solutions and efforts, and lead partnerships across various sectors, to build a more inclusive and resilient future.