Home » From the rise of China to the fate of crypto, Future Investment Initiative offered glimpses of a world in transition

From the rise of China to the fate of crypto, Future Investment Initiative offered glimpses of a world in transition

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RIYADH: On the third and final day of the Future Investment Initiative (FII) Forum in Riyadh, experts will explore the shifting virtual world, from China’s rise as a superpower to Africa’s transition to green energy. We solved all the problems related to currency fortunes.

The session titled “China is Back” will explore China’s exact place in the “new world order” and how the Middle East will work with Asian powers to strengthen its own position and potentially with the East. West.

Earlier this year, the Chinese city of Shanghai was put into lockdown following a new outbreak of the Omicron variant of COVID-19. Since then, citizens in other major cities across the country have been ordered to stay at home, bringing local economies to a halt.

While other countries have tried to contain COVID-19 transmission through a combination of mass vaccination and public awareness campaigns, China has implemented a policy of “zero COVID”, resulting in multiple deaths. A very disruptive lockdown is in place.

The impact of these lockdowns is being felt around the world due to the size and far-reaching impact of the modern Chinese economy and its dominant role in global supply chains and manufacturing.

Despite the global stress caused by the pandemic and the war in Ukraine, China’s economy is growing rapidly and the influence of soft power from Central Asia to Africa continues to grow.

Experts on Thursday’s panel said China’s expertise and successes in technologies, including artificial intelligence, digitization, robotics and automation, have given China a strategic presence and immense influence in the global economy. agreed.

At the same time, China is one of the world’s largest oil importers, importing more than 40% of its crude oil from the Gulf countries. There are also plans for closer ties between China and Saudi Arabia on green technology and digitalization.

Ming-Po Cai, founder and chairman of Cathay Capital, has many years of experience in developing strategies for multinational companies to enter China. The first question was whether it would be possible to satisfy the panel.

“Within three days, I met with dozens of local stakeholders, AI entrepreneurs, logistics and local funds. It’s about having to launch a startup with a company, not just one technology, one deal, or one investor.”

One area where many countries are investing heavily is cryptocurrencies. It is a form of digital currency designed to act as a medium of exchange through computer networks without relying on central authorities such as governments or banks to maintain or maintain it. .

Cryptocurrencies have gained momentum around the world in recent years and have the potential to reshape the investment landscape, but some of these currencies have experienced extreme volatility, largely due to shocks to the real economy. suffering from

Nevertheless, recent gains in non-traditional crypto investment hubs such as Russia, Spain and France show that cryptocurrencies still hold great appeal for investors.

“Many people like to talk about once-in-a-generation opportunities,” 21Shares co-founder and CEO Honey Rashwan told a separate panel titled “Building a Better Crypto Economy.” said.

“Historically, the reserve currency of the financial system often stays the same once in a generation. So for me, crypto is a world-changing technology, a once-in-a-century opportunity.

“We really remember that it is possible to innovate outside the central bank and comply with all laws and regulations in force to make our daily lives more comfortable. is needed.”

As of September 2021, the market value of all crypto-assets will exceed $2 trillion, and the volatile and unpredictable political, economic and technological It has withstood a lot of change.

While the cryptocurrency space as a whole is still viewed as uncharted territory in the financial industry, several speakers at Thursday’s panel argued that cryptocurrencies should be allowed in portfolios, traded and properly regulated. claimed to be.

For Rashwan, the world may have reached a tipping point where “maybe it’s time to think of this as a separate asset class.”

Much of the volatility observed in the real economy over the past year is the result of energy price volatility, largely due to the war in Ukraine and subsequent Western sanctions against Russia. .

However, rising energy prices appear to be accelerating the shift to renewable energies such as wind, solar and hydrogen. Nowhere is this rapid spread perhaps more evident than in Africa. Africa is a continent with a unique vulnerability to global economic storms.

Experts believe that renewable energy demand in Africa could grow by as much as 30% over the next 20 years, compared to a 10% increase globally. This is due to rapid population growth and industrialization.

According to the International Energy Agency, Africa has 60% of the world’s best solar resources, but only 1% of solar capacity, despite projected increases in energy demand.

“If you look at Africa today, it is home to 1.8 billion people and is expected to grow to 2 billion by 2040,” said Marlene Ngoyi, CEO of FEDA, in “Focus on Africa: Trade and He spoke at a panel entitled “Energy”.

Half of the African continent’s population currently has no access to electricity, but the potential is enormous “as Africa is a key player in energy”. “Given the shift to a green economy and electric vehicles, cobalt is needed and more than 60% of his mined resources are in his DRC and Zambia.”

Africa accounts for the lowest share of global greenhouse gas emissions at just 3.8%, but many countries on the continent depend on oil and gas, Ngoyi said. Governments need to be realistic to make the transition to alternative energy, she added.

From energy to sports, the diversity of topics at the 6th edition of the FII did not disappoint. With the FIFA World Cup just around the corner, the Forum’s final panel looked at football as a tool for social progress and economic development across generations, cultures and communities.

“Football is more than just a sport, FIFA is the biggest show on earth.

“This World Cup is not just the World Cup in Qatar. It is the entire Middle East and the Gulf region that brings the whole world together here. will find opportunities to express themselves to the world in terms of

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