(MENAFN- Mid-East Info) Dubai, UAE –November 2025: The global economy stands at a critical inflection point, where the fundamental rules of competition are being rewritten. This was the strong declaration made by Rebeca Grynspan, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), at the Knowledge Summit in Dubai, where she gave a keynote titled“Knowledge Economies and Global Trade: New Pathways for Inclusive and Sustainable Development.”

In her keynote, Grynspan asserted that knowledge, rather than traditional reserves of capital or natural resources, has decisively become the new currency of economic power. This paradigm shift demands a new understanding of economic architecture that moves beyond merely acquiring technology.

Grynspan stressed that a functional knowledge economy does not emerge from technological capability alone. Instead, it is built on a robust institutional framework:“They emerge from institutions that translate ideas into products, from policies that lower barriers to participation, and from corporations that allow countries to learn from one another.” She delivered a powerful forecast: the defining characteristic of the coming decade will not be determined by which nation possesses the most technology, but by which nation creates the most knowledge markets.

This observation is given weight by figures surrounding the growth of Artificial Intelligence (AI). AI-related exports, despite accounting for only 15% of total global demand, fueled a remarkable 40% of all trade growth in 2024. The Southern Surge:

Crucially, Grynspan pointed out that this rapid rise isn't centralized in traditional economic hubs. Much of the growth is taking place across the Global South, where countries, including those in South Asia, are growing at an impressive 9% annually, a pace even faster than that of China's.

“This shows that developing countries are increasingly trading with each other, building regional resilience and integration,” she explained. This rise of South-South trade demonstrates a profound adaptability within these markets, which are successfully carving out new, inclusive pathways for economic expansion despite persistent global uncertainties.

The shifting nature of commerce is confirmed by the latest UNCTAD data, which predicts global trade reached $33 trillion in 2024, a significant increase from 2020. While the trade in physical goods saw a modest 2% rise, exports of services experienced a remarkable 9% surge-a consistent trend since 2014.

This trend is driven by what Grynspan termed“servicification,” the profound integration of services into traditionally manufactured products. This integration pushed global services exports to represent about 62% of total trade, unequivocally underscoring the increasing importance of intangible goods and intellectual property worldwide.

However, Grynspan concluded with a necessary warning: these powerful new markets are inherently not neutral.“Knowledge markets reflect the incentives, governance, and values of those who control them,” she said, emphasizing that their structure must be inclusive to ensure equitable global development.

The digital divide remains a significant obstacle. She lamented that 2.6 billion people remain completely offline, and many developing countries lack the foundational digital infrastructure and cybersecurity measures necessary to even measure the benefits of digital trade, let alone capitalize on them fully.

Yet, within these challenges lies an enormous opportunity. Grynspan highlighted that services, particularly creative industries and digital solutions, offer“alternative pathways to structural transformation that don't require massive industrial infrastructure.” By strategically focusing on digital services, AI adoption, and deep regional cooperation, developing countries can effectively leapfrog traditional, capital-intensive industrialization models.

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