As of February 2025, the global business environment is experiencing significant transformations influenced by geopolitical shifts, economic diversification efforts, and evolving market dynamics. This article provides an overview of the most pertinent events and trends shaping international and emerging markets today.

Expansion of Financial Services in the European Union

In a strategic move to enhance its international presence, Rathbones, a prominent FTSE 250 wealth management firm, has announced plans to establish an office in Dublin. This initiative aims to offer investment products to third-party advisers within the European Union, targeting the approximately 1.3 million British expatriates residing in EU countries. This expansion aligns with a broader trend of UK-based financial institutions setting up EU bases post-Brexit to maintain seamless service delivery across Europe. The firm’s recent merger with Investec Wealth & Investment has already yielded £30 million in cost savings, with expectations to double this figure by the end of 2025. This development underscores the ongoing realignment within the financial sector to adapt to post-Brexit realities and the pursuit of growth opportunities within the EU.

Consulting Industry Thrives in the Gulf Amid Global Challenges

While the global consulting industry faces economic headwinds, the Gulf Cooperation Council (GCC) region stands out as a beacon of growth. Comprising Saudi Arabia, Qatar, the United Arab Emirates, Bahrain, Kuwait, and Oman, the GCC experienced a 13.2% surge in its consulting market in 2023. This robust expansion contrasts sharply with the stagnation observed in mature markets like the United States and the United Kingdom. Major international consultancies, including Deloitte, PwC, EY, and KPMG, have significantly increased their footprint in the region, capitalizing on extensive government investments aimed at diversifying economies away from oil dependence. Ambitious projects, such as Saudi Arabia’s Vision 2030 plan and the Neom megacity, exemplify the scale of these initiatives. However, these projects have not been without controversy, facing criticism over human rights concerns. As infrastructure projects mature, the focus of consulting work is anticipated to shift from strategic planning to operational execution, highlighting the evolving nature of consultancy services in the region.

Aviation Sector Faces Airfare Fluctuations

The aviation industry is navigating a complex landscape marked by fluctuating airfares and shifting travel demand. Flight Centre, a global travel agency, reported an underlying profit of $117 million for the six months ending December 2024, slightly below market expectations. This shortfall is partly attributed to a 9% decrease in international airfares during the first quarter, followed by an additional 3% drop in the second quarter. Despite these challenges, the company remains optimistic, projecting a full-year profit ranging between $365 million and $405 million. CEO Graham Turner noted that while current airfares are low, they have likely reached their nadir, with potential increases on the horizon. The anticipated partnership between Virgin Australia and Qatar Airways is expected to intensify market competition, potentially influencing fare structures and consumer choices.

Emerging Markets: Investment Performance and Outlook

Emerging markets have exhibited varied investment performances, reflecting a complex interplay of global economic factors. In the fourth quarter of 2024, the Lazard Emerging Markets Equity Portfolio experienced a decline in absolute terms, underperforming its benchmark, the MSCI Emerging Markets Index. Conversely, the Lazard Emerging Markets Core Equity Portfolio, while also retreating, managed to outperform the same benchmark. Sector-specific analyses reveal that materials, consumer discretionary, and energy sectors faced significant challenges, whereas information technology, financials, and real estate sectors demonstrated resilience. These trends underscore the necessity for investors to adopt a nuanced approach, considering sector-specific dynamics and regional developments when making investment decisions in emerging markets.

Geopolitical Shifts Impacting International Business

Geopolitical developments continue to exert a profound influence on international business operations. Notably, the United States’ decision to suspend enforcement of the Foreign Corrupt Practices Act has raised concerns among European prosecutors. This policy shift may lead to a more lenient approach toward American companies, potentially creating an uneven playing field and complicating international anti-corruption efforts. Such changes highlight the intricate relationship between policy decisions and global business practices, emphasizing the need for companies to remain vigilant and adaptable in the face of evolving regulatory landscapes.

Infrastructure and Business Development Initiatives

Infrastructure development remains a cornerstone of economic growth in emerging markets. Chongqing’s Yuzhong district in China has inaugurated the Yuzhong District International Business Center, aiming to elevate international service standards and foster enhanced cooperation and exchanges. This initiative reflects China’s broader strategy to integrate more deeply into the global economy by creating business-friendly environments that attract foreign investment and facilitate international trade. Such developments are pivotal in positioning emerging markets as viable and attractive destinations for global business operations.

Conclusion

The current global business landscape is characterized by a confluence of expansion efforts, market-specific challenges, and geopolitical shifts. Companies operating internationally must navigate these complexities by staying informed and agile. As markets continue to evolve, success will depend on the ability to adapt to changing economic conditions, regulatory environments, and consumer demands. Stakeholders are encouraged to monitor these developments closely, leveraging insights to make strategic decisions that align with the dynamic global business milieu.

Sources: Business Insider, FN London, Seeking Alpha, Economic Times, The Australian, China Daily