London will lead the way as leaders address global challenges at Davos
For London, the world’s financial capital, Davos offers a vital platform to champion the UK’s role as a global leader in green finance, AI regulation and emerging technologies, says Lord Mayor Alastair King
As world leaders descend to Davos this month, the World Economic Forum provides a rare chance to reshape the global agenda amid economic uncertainty.
With global growth projected to reach just 3.3 per cent in 2025 and mounting challenges from climate change to geopolitical instability, it is essential to focus on unlocking transformational growth. For London, the world’s financial capital, Davos offers a vital platform to champion the UK’s role as a global leader in green finance, AI regulation and emerging technologies. These themes align closely with my mayoral programme, ‘Growth Unleashed’, which centres on rethinking risk, fostering innovation, and celebrating the diverse communities that underpin our economic success.
The UK faces a significant opportunity to drive economic growth by modernising its financial frameworks. Cash ISAs are an immediate source of capital. Of the roughly £700bn invested in ISAs in the last ten years, £430bn has gone into cash ISAs. Yet it is stocks and shares ISAs that would benefit UK businesses and the economy far more strongly. Additionally, significant work has taken place over the past two years to support the UK pensions industry investing into pre-IPO and IPO firms. Venues such as AIM, where small and medium cap businesses should see inflows from the signatories of the Mansion House Compact, for example. We should also take advantage of new platforms such as the Pensions Investment and Climate Stewardship (PISCES) venues, once approved, where pension money can provide additional liquidity to help private companies grow.
Growth in the Gulf
As we reinvigorate the domestic economy, we must also solidify London’s role as the gateway to global growth markets, particularly in the Gulf and Asia. The Gulf, with its dynamic economic diversification agenda, presents enormous opportunities for collaboration in areas such as green finance, fintech and insurance. Deepening ties with the Gulf Cooperation Council, including advancing a UK-GCC trade deal, will unlock market access for British firms while supporting the region’s ambitious transformation plans. London’s financial ecosystem, robust legal framework and world-class talent position us perfectly to help these markets achieve their goals while securing new opportunities for UK businesses.
Davos also provides a platform to underscore London’s leadership in addressing the most pressing global challenges of our time: climate change. With an estimated $6.7 trillion in annual global financing required to meet net-zero targets, London is uniquely placed to lead the transition finance market. The City of London Corporation has pledged to achieve net zero in its operations by 2027, supported by our Climate Action Strategy. By showcasing this leadership at Davos, we can position the UK as the go-to hub for sustainable finance, offering expertise and insight to global policymakers and investors.
London’s financial ecosystem, robust legal framework and world-class talent position us perfectly to help these markets achieve their goals while securing new opportunities for UK businesses
Another critical focus of mine at Davos will be promoting the UK as the world’s leading hub for asset management. With £4.2 trillion managed for overseas clients, the UK is second only to the United States in global assets under management. The next decade offers an unparalleled opportunity to position the UK as a global leader in digital asset management, fostering a culture of inclusive investment that empowers citizens to access capital markets while channelling savings into businesses and infrastructure that drive economic growth.
This year’s WEF theme, ‘Reimagining Growth’, aligns perfectly with my mission as Lord Mayor: positioning the City of London as a global leader in driving growth. Through domestic reforms, stronger international ties, and a focus on innovation, London can stay at the forefront of tackling global challenges. Davos isn’t just a meeting of minds – it’s a platform to forge partnerships, spark action and showcase the UK’s leadership in building a more prosperous future for all.
Alastair King is Lord Mayor of the City of London