Conference Presentation, Panel
Navigating a Changing Global Economy | Middle East and Africa Summit 2024
Milken InstituteLaura Deal Lacey, Michael Milken, His Royal Highness Prince Turki Al Faisal Al Saud, Makhtar Diop, Mohamed Mansour, Alan Schwartz, Prince Turki Al Faisal Al Saud
- The global economy is anticipated to undergo a dramatic shift over the next 20 years, while panel sessions are expected to recur approximately two years from now.
- The Milken Institute plans to generate new ideas for a fair future, with the International Finance Corporation (IFC) projecting capital operations to rise from $56 billion last year to approximately $65 billion this year.
- Wealth in the Middle East and Africa is predicted to continue increasing, having reached 67 percent of Americas' wealth over the last two decades, with the region expected to transition from a capital provider to a hub where capital returns to the Global South.
- Demographic projections indicate that 40 percent of the world's children will live in Africa in the future, while Nigeria is expected to surpass China's population by the end of the century; conversely, 700 million people are projected to disappear from China's population this century.
- Sub-Saharan Africa is expected to maintain a median age of 19 years, with 50 percent of its youth under 25, contrasting with the United States and China where median ages are approaching 40.
- The United States currently faces interest expenses exceeding defense spending, has a population of 55 million foreign-born residents (over 10 percent from Africa), and estimates human and social capital worth $1,500 to $2,000 trillion.
- Emerging countries are projected to see 1.2 million young people enter the job market over the next 10 years, creating a need for quality private sector jobs to ensure stability regarding migration, conflict, and poverty.
- The AI revolution is predicted to alter daily life within five to ten years, and the Middle East is expected to become a leader in technology and finance, potentially driving a model similar to the U.S. Industrial Revolution with government-led infrastructure.
- Resource mobilization strategies include leveraging philanthropy to de-risk private sector investments, with the IFC noting that 40 percent of its work is now conducted in local currency.
- Investment barriers exist as asset classes below $1 billion are often deemed insufficient for institutional investors, while the Gateway KSA program aims to host students globally for 10-day visits to improve perspectives.