In the first session…the global financial landscape became the focus of the opening of the Fintech Forward 2025 Forum

Sayed Hussein Al-Qassab – Photography by Suhail Wazir

The “temptations” to use financial tools to reduce the deficit threaten monetary stability

Investment flows and exchange rates are reshaping international trade relations

Market dynamics reflect a radical shift away from the dominance of major powers

Transformations are not limited to risks, but rather open opportunities for emerging markets

The first session of the Fintech Forward 2025 Forum, held at the Bahrain International Exhibition Center under the title “The State of Global Financial Technology: What Remains After the Boom, and What Next?” witnessed a discussion about the future of financial technology in light of global economic and political transformations, with the participation of an elite group of international experts in the financial and technical sectors.

The session was moderated by The Economist’s Financial Markets Editor, Joshua Roberts, and was attended by Simon French, Managing Director, Chief Economist and Head of Research at Panmure Liberum, and Swaroop Gupta, Industry Director and Principal Analyst for Financial Services, Environmental and Social Sustainability at The Economist Intelligence Unit.

Simon French explained that the global financial sector is going through a phase of rebalancing as a result of major changes in monetary policy and the macroeconomy, noting that governments are now facing “temptations” to use financial tools to reduce the deficit, which carries risks to monetary stability and capital distribution.

He stressed that these transformations directly affect investment flows and exchange rates, which reshapes international trade relations.

He added, “The change in market dynamics reflects a radical shift away from the traditional hegemony of major countries, which will leave a wide impact on financial policies in various economies.”

He explained that the next stage requires financial decision-makers to adopt new tools that balance monetary stability and economic growth, pointing out that financial technology has become a pillar in this process, and not just a tool for change or “rebellion” against the traditional financial system as it was in the past.

For his part, Swaroop Gupta explained that the world is witnessing an unprecedented rise in levels of geopolitical uncertainty, which is prompting many countries to reconsider their financial and trade policies.

He pointed out that “the heavy dependence on the financial system based on the US dollar has begun to gradually decline, with some economies seeking to create new financial arrangements that reduce this dependence.”

Gupta stressed that “the current transformations are not limited to risks, but also open opportunities for emerging markets to develop more diversified and independent financial systems,” noting that the Middle East and Asia regions play an increasing role in shaping the features of the new global financial system.