The future of capitalism may no longer lie in the skyscrapers of New York or the glass towers of London. Increasingly, it is taking shape beneath the desert sun of Riyadh, where vision and pragmatism meet in a way long missing from the Western world. The transformation unfolding in Saudi Arabia, and across the broader Middle East, signals a rare economic and cultural awakening that few in the West fully grasp.

During an episode of News Sight this week, I spoke with Patrick Basham, the founding director of the Democracy Institute, who has attended three consecutive Future Investment Initiative (FII) conferences, often described as “Davos in the Desert.” The FII is a think tank financed by Saudi Arabia’s sovereign wealth fund. From his vantage point, Basham sees an unmistakable truth emerging: “The Middle East is teaching the capitalist West how to do capitalism.”

Basham’s view carries weight. Since founding the Democracy Institute in 2006, he has led a politically independent think tank with offices in Washington and London, producing high-impact research on free-market, conservative, libertarian, and populist ideas. The Institute’s public polling famously forecast Brexit and Donald Trump’s 2016 victory.

Speaking from Riyadh at FII’s ninth summit, Basham described how the conference evolved from a Saudi initiative into the premier annual global investment convocation. “It began as a way for the world to look in and see Saudi Arabia,” he explained, “as the Kingdom began a decade-long reform process—economic, social, and cultural.”

Indeed, Saudi Arabia’s Vision 2030 plan has restructured its economy toward diversification, private enterprise, and foreign investment. Riyadh’s drive for modernization was once dismissed as cosmetic. However, over the last decade, it has achieved striking outcomes, from expanding women’s professional participation to nurturing a skilled workforce in technology and finance.

FII’s rise has paralleled this transformation. Basham contrasted it sharply with the World Economic Forum in Davos. “Davos,” he noted, “is where billionaires meet to tell the world how to run itself—a top-down exercise with little interest in what ordinary people think. The Future Investment Initiative is the opposite: pragmatic, inclusive, and solution-oriented.”

Basham recalled that when he first attended FII two years ago, much of the discussion centered on conflict and humanitarian crises. This year, the focus shifted to opportunity. “The Gulf states are explicitly open for business,” he said. “They’ve improved education, technology, tax regimes, and, most importantly, stability. Investors crave stability above all else.”

That stability stands in contrast to the political volatility now gripping much of the Western world. Basham spoke admiringly of the entrepreneurial energy pulsing through Riyadh. “There’s a cultural dynamic here—a work ethic—that Americans once took for granted. You can feel the difference between Riyadh and Washington, between Riyadh and London. The entrepreneurialism is rampant.”

Although the conference centers on investment, peace remains its implicit theme. “There are sessions on geopolitics,” Basham said. “It’s not about preaching peace but about creating conditions where peace is profitable.” That perspective mirrors what he described as President Trump’s “transactional view” of global affairs—why fight, after all, when nations can trade and prosper instead.

The logic is compelling. As Middle Eastern economies interweave through trade and technology, their shared prosperity becomes a stabilizing force. Basham framed it succinctly: “Long-term economic relationships knit countries together, making it harder for them to fall apart.”

He believes such relationships will yield cultural dividends as well. Economic growth, he noted, often fosters moderation by giving people tangible hopes and livelihoods. “When economic times are poor, that’s when people reach for extreme solutions,” he warned. “So the more integrated these economies become, the more resilient their societies will be.”

Over the last decade, the Middle East has indeed made measurable strides. Tax regimes have become more competitive, regulatory burdens lighter, and universities more focused on science and technology. Legal reforms have increased transparency and property-rights protection. Women’s participation in business has grown rapidly; Saudi Arabia now counts thousands of female entrepreneurs.

Basham sees these changes as part of a deeper cultural shift: “The Middle East is saying to the world, ‘Whatever mistakes we or you made in the past, we want to be front and center of the global economy.’”

That message, he argued, deserves to be heard in the West, where pessimism about capitalism runs high. “Take a fresh look at us,” Basham said. “Don’t assume that what you heard twenty years ago about the Middle East still applies in 2025.”

His words echo the wider truth emerging from Riyadh’s desert skyline. The world’s economic future may no longer be scripted in the boardrooms of Brussels or Wall Street, but in the markets of Dubai, Doha, and Jeddah. This is where capitalism has rediscovered its original purpose: to build, to trade, and to inspire hope.

Dr. Joseph Ford Cotto is the creator, host, and producer of News Sight, delivering sharp insights on the key events that shape everyday life. During the 2024 presidential race, he developed the Five-Point Forecast, which accurately predicted Donald Trump’s national victory and correctly called every swing state. Cotto holds a doctorate in business administration and is a Lean Six Sigma Certified Black Belt.

Image: B.alotaby, CC BY-SA 4.0, via Wikimedia Commons, unaltered.