Summer Davos opens with Middle East tensions, AI ambitions and China's future in focus

Just weeks after tensions in the Strait of Hormuz rattled global energy markets, and as businesses around the world grapple with the rapid rise of artificial intelligence, more than 1,700 leaders from over 90 countries have gathered in the Chinese city of Dalian for this year's Summer Davos.

The 17th Annual Meeting of the New Champions, organised by the World Economic Forum, opened this week under the theme Innovating at Scale. But if the first day is any indication, the conversation is about far more than technology.

From the future of the Middle East and global trade to China's economic outlook and the impact of AI on jobs, delegates spent much of the opening day wrestling with a question that is increasingly shaping boardrooms and governments alike: how do you build growth in a world that feels more uncertain than ever?

Speaking on the Radio Davos podcast ahead of the meeting, World Economic Forum Managing Director Mirek Dušek said geopolitical tensions, shifting economic relationships and slowing growth projections would shape many of the conversations taking place in Dalian.

One discussion that captured those concerns focused on the future of the Middle East.

The panel discussing - What Next for the Middle East? - at the Summer Davos. Screenshot of the virtual session.

Moderated by Karen Young, Senior Research Scholar at Columbia University's Center on Global Energy Policy, the panel examined how the region is navigating the aftermath of recent tensions involving Iran, Israel and the United States.

Young described the situation as one of the biggest disruptions to regional energy markets in recent history and suggested the spillover effects on Gulf states had been neither anticipated nor welcomed.

Yet the discussion was not entirely centred on conflict.

Sanam Vakil, Director of the Middle East and North Africa Programme at Chatham House, argued that the region is often viewed too narrowly through the lens of instability.

"The region is not only defined by conflict. There is a lot of ambition, desire for growth and stabilisation," she said.

Vakil noted that before the latest escalation, the region had experienced years of economic diversification and diplomatic engagement. Relations between Iran and several of its neighbours had improved, while efforts to normalise ties between Israel and Arab states had gathered momentum.

At the same time, she argued that the latest conflict had exposed vulnerabilities that many regional observers had long warned about.

The closure of the Strait of Hormuz sent shockwaves through global markets, while Iran demonstrated its ability to extend the impact of conflict well beyond its own borders.

Where the region goes next, she suggested, will depend largely on diplomacy.

Vakil pointed to recent engagement between Washington and Tehran, including discussions around maritime security, nuclear issues, economic incentives and broader regional stability. While trust between the two sides remains fragile, she believes negotiations are likely to continue.

"There is no guarantee," she said, "but things will move on."

For businesses, however, the focus is already shifting towards adaptation.

Lina Noureddin, founder of Saudi Arabia-based Lamar Holding, said governments and investors are accelerating plans for ports, logistics hubs and alternative trade routes.

With roughly one-fifth of global energy supplies passing through the Strait of Hormuz, countries are increasingly looking for ways to reduce reliance on a single maritime corridor.

"The region has been restructuring," she said, pointing to growing investments in transport, energy and supply-chain resilience.

That view was shared by Khaled Sharbatly, Chief Executive Officer of Desert Technologies, who argued that many of the changes now attracting attention were already underway long before the latest crisis.

"We have been preparing for this scenario since the 1990s," he said.

Rather than creating entirely new trends, the conflict has accelerated existing investments in logistics, renewable energy and industrial infrastructure, particularly across the Gulf.

Mazen Darwazeh, Executive Vice-Chairman and Deputy Chief Executive Officer of Hikma Pharmaceuticals, offered a broader perspective.

"This is not a war. It is a battle," he said, arguing that the deeper issues shaping the region remain unresolved.

The latest conflict, he suggested, has damaged infrastructure built over decades and left governments facing substantial reconstruction costs. Yet he also pointed to the region's young population and long-term economic potential.

"When there is rebuilding, there is opportunity," he said. "The question is who will capture it."

Tech, AI and more

Away from the Middle East, another conversation dominated the corridors of Summer Davos: how quickly technology is moving from experimentation to deployment.

For Olivia Siong, Senior China Editor at Channel NewsAsia, the pace of change has been one of the most striking aspects of attending the forum.

"Two years ago, we were talking about electric vehicles and batteries. Last year, there was a lot of talk about AI and the DeepSeek moment. This year, we're already talking about innovating at scale," she said on Radio Davos.

Robotics, embodied AI, advanced manufacturing and biotechnology are among the technologies attracting attention this year, reflecting China's push to position innovation at the centre of its next phase of growth.

Yet alongside the excitement sits a familiar concern: jobs.

Several sessions this week will explore how governments and businesses can harness emerging technologies while ensuring economic growth translates into employment and opportunity.

That challenge, perhaps more than any single technology, may define the conversations in Dalian.

Because while Summer Davos is often associated with what comes next, the opening day suggested leaders are equally focused on a more immediate question: how to navigate a world where geopolitics, economics and technology are becoming increasingly difficult to separate.

Over the coming days, discussions will turn to artificial intelligence, energy transition, employment, US-China relations and China's economic trajectory. Together, they offer a snapshot of the forces shaping not only Asia's future, but the global economy's as well.

-Asia Media Centre

Banner Image from WEF's LinkedIn account