The global economy in 2025 is undergoing profound transformations, driven by the convergence of technological advancements and policy shifts. According to Emirates NBD’s 2025 Global Outlook, titled “Winds of Change,” these changes are accelerating two significant trends: the rebalancing of the global economy and the accumulation of debt in developed nations. This collision is expected to have lasting impacts on investments and economic structures worldwide. The year has already proven favorable for portfolios, with strong performance across asset classes, supported by resilient global growth, contained inflation, and central bank rate cuts. However, the landscape is not without risks. Sovereign debt sustainability in developed countries is a pressing concern, with rising debt levels and servicing costs nearing unsustainable limits. Meanwhile, the rapid development of artificial intelligence (AI) presents both opportunities and uncertainties. While AI investments are expected to yield returns, their timing and broader economic impact remain unclear, raising questions about potential unemployment and societal divides. On the flip side, the AI sector continues to offer vast opportunities across the value chain, from energy to software. Geopolitical shifts toward a multipolar world, particularly in the Indian Ocean region, also unlock significant growth potential, supported by young, educated populations and robust trade prospects. For investors, the current environment calls for strategic portfolio positioning rather than reactive trading. Success will depend on patience, long-term thinking, and a focus on navigating the complexities of this evolving economic landscape.