Attracting global investment to emerging markets requires policy stability and ensuring implementation

Director General of the International Finance Corporation, Mokhtar Diop, stressed that attracting investments to emerging markets requires a stable and clear environment, in addition to predictable and long-term economic policies, stressing that capital by nature avoids uncertainty.
He said that investors are looking for clarity in economic trends, stability in the local currency, and applicable regulatory frameworks.
This came during a key session entitled “Is growth a government choice or an investment opportunity?” As part of today’s activities at the World Government Summit 2026, which is being held in Dubai from February 3 to 5, under the slogan “Foreseeing the Governments of the Future,” Diop reviewed the most important challenges of the global economy and investment opportunities, in light of the rapid transformations taking place in international markets.
He said that the International Finance Corporation conducted direct dialogues with senior CEOs and managers of global investment funds, to understand their conditions for entering emerging markets, and these discussions concluded that guarantees, in addition to policy stability, represent a decisive factor in investment decisions.
He added that one of the main challenges in emerging markets is the gap between announced policies and actual implementation, especially in infrastructure projects, stressing that investors often notice a difference between the announced plans and the reality on the ground. Therefore, the International Finance Corporation is working to help countries manage the complexities of changing policies and build long-term frameworks that allow the formation of economic reserves capable of absorbing shocks, as happened during the Corona pandemic.
Diop pointed out that the International Finance Corporation has recently intensified its guarantee tools within the World Bank Group and expanded its ability to bear risks, including entering into more advanced financing centers, with the aim of supporting developing countries and enabling them to overcome investment and financial challenges.
Regarding advanced economies, he called on policymakers to strengthen dialogue with the business community, considering that stability does not mean stagnation, but rather the ability to manage change through clear communication, allowing investors to make long-term decisions with confidence.
Regarding artificial intelligence, Diop acknowledged the existence of legitimate concerns related to job losses, but stressed that the world today is witnessing multiple and simultaneous shocks, including health crises, climate change, geopolitical tensions, and rapid technological development, which requires focusing on building resilience rather than being satisfied with short-term reactions.
He explained that artificial intelligence, especially in emerging markets, can be a tool for creating job opportunities and raising productivity, citing simple applications that allow farmers, for example, to diagnose their crops’ fertilizer needs via smartphones. He also pointed out that digital transformation contributes to changing learning methods and provides broader access to knowledge in low-income countries, which enhances the efficiency of the workforce.
He expected that the impact of artificial intelligence would be different in advanced economies, as some sectors, such as health care and elderly care, would still need the human element, while achieving productivity gains in the areas of diagnosis and medical services.
At the level of monetary policies, he called for caution in drawing sharp conclusions about the future of traditional currencies, in light of the rise of digital currencies, stressing that these transformations require a longer time for evaluation, and that central banks are following developments cautiously in an environment characterized by a great deal of volatility.
Regarding the energy file, the Director General of the International Finance Corporation stressed that the discussion should not be limited to electricity generation, but should also include transmission and distribution networks, which represent a bottleneck in many countries.
At the end of his speech, he stressed that investment in infrastructure, especially in the fields of energy, transportation, and logistics, cannot succeed without coherent policies, effective governance, and continuous dialogue between governments and investors, to ensure the achievement of sustainable and comprehensive development.