I first heard concerning the Future Funding Initiative at first of 2023 whereas attending the LEAP convention in Saudi Arabia. “In case you discover LEAP spectacular, you have to be on the FII on the finish of October. Everybody—and I imply everybody—who issues on this planet of finance and funding goes to be there,” a high-profile funding skilled primarily based in Dubai advised me.
Just a few months later, to my shock, Dr. Peter Diamandis, one of the crucial impactful people within the discipline of longevity and different exponential applied sciences, reached out and requested if I might be keen to offer a chat on AI and robotics for drug discovery and getting older analysis. He additionally proposed that I invite our president of Insilco Canada, Dr. Petrina Kamya. Peter runs his personal program known as Abundance 360, which incorporates an annual occasion in Los Angeles, which brings collectively many high-impact individuals who you wouldn’t meet in a single place anyplace else, so if he calls, you don’t say “no.”
So I regarded up FII and realized that it’s known as “Davos within the Desert” for a motive. First, the chief architect of the occasion is the CEO of the FII Institute, Richard Attias, who produced a number of high-profile platforms, together with the World Financial Discussion board, Clinton International Initiative, and Nobel Laureates Discussion board, simply to call just a few. Second, one of many fundamental trustees and headliners of the discussion board is His Excellency Yasir Al-Rumayyan, the governor of the Public Funding Fund (PIF) and the chairman of Saudi Aramco, the world’s second-largest (and typically the most important) firm. However in contrast to the World Financial Discussion board in Davos, the occasion featured fewer heads of state however extra traders and high-technology conferences. The top of each main financial institution and funding agency was on the checklist.
Is Riyadh The New New Davos?
Most individuals don’t notice how a lot Saudi Arabia has modified since 2017. In underneath six years, it went from radical conservatism, the place spiritual police may beat you up with sticks for a motive and typically with out motive, to a worldwide superpower the place foreigners can really feel safer than at dwelling spending on the place they arrive from. These adjustments have been defined to me vividly by a US old-time authorities contractor, Mike, who sat with me on the identical flight. In accordance with Mike, after the administration reshuffle the place HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia consolidated energy, the nation launched huge and really radical reforms. HRH MBS made it very clear that he doesn’t need his individuals to be behind most different international locations whereas having the wealth of Apple, Google, and Amazon mixed underneath their ft. And he disbanded spiritual police and launched freedoms by no means seen on this area earlier than. Most of the fanatics portrayed within the film “The Kingdom” weren’t very pleased about this new route, and threats of terror assaults and regional conflicts grew to become very actual. To place the top to those threats the brand new administration made the chop-chop sq. work double time to exhibit what is going to occur to zealots who need the nation to remain behind. And to alter the mindset of the younger era to give attention to the long run as a substitute of staying previously, he devised this system known as “Imaginative and prescient 2030” with very formidable targets for sustainable power, innovation in healthcare, and investments in high-technology. He additionally began constructing mega tasks like Neom that gave the individuals a way of goal, urgency, and confidence.
Gloom, Doom, And Cautious Optimism
The FII Institute generously printed the convention abstract and the chief report (referenced on the finish of the article), however the notion of the macroeconomic situations mentioned on the occasion might differ significantly from the overly-optimistic model.
The primary monitor of the convention began with a welcoming speech by HE Yasir Al-Rumayyan, Governor, Public Funding Fund, Chairman, Chairman of Aramco, and the Chairman of the Board of Trustees on the FII Institute, and after a panel with Ajay Banga, the president of the World Financial institution, transitioned right into a board dialogue. This board dialogue, for my part, was the spotlight of the convention. It included a few of the most outstanding leaders of the monetary trade, together with:
- Ray Dalio, Founder, CIO Mentor & Member of the Board, Bridgewater Associates
- Jamie Dimon, Chairman & CEO, JPMorgan
- Laurence D. Fink, Chairman & CEO, BlackRock
- Jane Fraser, CEO, Citi
- Dr. Patrice Motsepe, Govt Chairman, African Rainbow Minerals Restricted
- Noel Quinn, Group CEO, HSBC Holdings
- Stephen A. Schwarzman, Co-Founder, Chairman & CEO, The Blackstone Group
- Neil Shen, Founding Managing Associate, Hongshan/Sequoia China
- David Solomon, Chairman & CEO, Goldman Sachs
- Shemara Wikramanayake, Managing Director & CEO, Macquarie Group.
There have been many highest-profile talks on the convention however this “board assembly” was most likely one of many highest-profile panel discussions this yr and touched upon the numerous factors made in the course of the convention. The organizers generously made the dialogue open and freely obtainable on Youtube.
Nonetheless, I took the freedom to summarize from the notes I took in the course of the panel.
The board session was chaired by David Rubenstein, the Co-Founder and Co-Chairman of Carlyle, who eloquently posed the questions, promoted the dialogue, and managed the time, which typically is a troublesome activity contemplating the caliber of the audio system. He stared with a short interview of the host of the convention, HE Yasir Al-Rumayyan who was most likely probably the most optimistic of the “board members.” He expressed optimism primarily based on Saudi Arabia’s plans and political will. He mentioned the a few of the Saudi Arabia’s megaprojects together with the event of NEOM and its zero-carbon footprint andits significance for future sustainable city improvement.
Larry Fink outlined quite a few short-term international financial issues however expressed confidence in humanity’s problem-solving skills over historical past. Jamie Dimon painted a a lot gloomier image and highlighted a few of the doable apocalyptic traits (extra on this later), and the necessity to resolve the geopolitical crises, cuts in uncontrollable spending, and enhancements in regulation. David Solomon of Goldman Sachs targeted on expertise administration and making a compelling ecosystem for professionals and highlighted the significance of adapting to new work environments. Steve Schwarzman of Blackstone supplied insights into the present state of inflation and its financial influence. Ray Dalio mentioned the significance of nations sustaining a great earnings assertion and stability sheet. He additionally expressed optimism concerning the future primarily based on historic patterns of problem-solving. Jane Fraser of Citigroup additionally expressed concern concerning the potential speedy influence of fiscal deficits however was the one one who mentioned the potential for important technological breakthroughs in healthcare.
The introductory remarks and the panel left me with a sense that the worldwide economic system is in a lately dire state. The uncontrolled spending by the foremost economies over the previous decade and rising inflation, which can or might not be addressed with the quickly rising rates of interest, main geopolitical conflicts, and financial wars, don’t present substantial grounds for optimism. The worldwide economic system is in a really fragile state. The large debt burden of the foremost developed economies, rising inflation, latest rate of interest hikes, and financial and actual wars are placing geopolitical stability in danger.
Nonetheless, most audio system agreed on one factor – generative AI is prone to positively influence the worldwide economic system. The forecasts on the influence of generative AI ranged from a world of abundance within the close to future to cautiously optimistic. A number of the audio system agreed that we might even see overinvestment (learn “bubble”) in generative AI within the quick time period, however in the long term, it would produce a extra important influence than the Web.
The Dangers of Nuclear Proliferation
One assertion by Jamie Dimon of JP Morgan involved me probably the most. He made it very clear that whereas different dangers like international warming, pandemics, and so on, are actual, we should always actually take note of the danger of nuclear proliferation.
“Essentially the most severe menace dealing with mankind is nuclear proliferation. If we aren’t sitting right here 100 years from now, will probably be nuclear proliferation. It’s not local weather or one thing else. If you have a look at the geopolitical scenario, it’s most complicated as we’ve seen. I don’t know whether it is 1948 or 1938. Clearly, all of us hope it would go away, however it’s a little little bit of wishful pondering…” mentioned Jamie Dimon.
Full Home Regardless of The Struggle Between Israel and Hamas
Weeks earlier than the FII, Hamas attacked Israel, triggering worldwide outrage and condolences. Israel responded polarizing the Arab world and even the Western hemisphere. Nonetheless, the FII proceeded as deliberate, and nearly no person canceled their journey.
This stoicism was highlighted by CNN, which coated the high-profile attendance of the FII regardless of the Israel-Hamas conflict.
A few pals from Israel attended, and I noticed a number of delegates in kippahs. Once I requested a outstanding Saudi physician who now runs a scientific analysis group concerning the scenario in Israel and his view on the Saudi place, the response was sudden. “We gave them (Palestinians) all the things – huge quantities of funding and assist. However we’re now not liable for what they do. That space is closely manipulated by different states, and we wish to transfer ahead into the long run. The easiest way to assist is to take care of peace and make progress.
Present Should Go On—FII Precedence Asia
December 7-8, the FII Institute will host FII Precedence Asia convention in Hong Kong, and hopefully, we’ll hear concerning the common macroeconomic sentiment in Asia.