Transforming Emerging Markets: Strategies for Sustainable Growth in South Asia and the Middle East

Amit Chopra, Chief Executive Officer - South Asia and Middle East, Cotecna Inspection, in an exclusive interaction with Asia Business Outlook, discusses how South Asian and Middle Eastern economies are aligning infrastructure growth, sustainability goals, and digital innovation to attract long-term investments, promote inclusive development, and transition toward green, resilient, and digitally empowered economic models by 2035. Amit Chopra is a transformational business leader with expertise in strategy, M&A, and innovation across technology-driven industries. He has led high-impact growth at Thermo Fisher Scientific, holds an IICA Independent Director accreditation, and is widely recognized for driving inclusive leadership and operational excellence.

With shifting geopolitical alignments and infrastructure-led growth, how are South Asian and Middle Eastern economies recalibrating sustainable development strategies to attract long-term foreign direct investments?

Countries in these regions are investing heavily in infrastructure to improve connectivity and trade efficiency. For example, ASEAN nations have seen a surge in FDI inflows due to improved investment climates and regional integration. Many economies are aligning their policies with the Sustainable Development Goals (SDGs) to attract environmentally conscious investors. Studies show that FDI can promote green growth, particularly in economies with strong fiscal policies. Governments are implementing investment-friendly policies, such as harmonized regulations and digital investment platforms, to streamline processes and reduce trade costs.

Countries are fostering deeper regional cooperation through agreements like the ASEAN Comprehensive Investment Agreement (ACIA) and developing cross-border SEZs.

What role do public-private partnerships (PPPs) play in enabling scalable infrastructure models that ensure inclusive economic development across underserved areas in South Asia?

PPPs help bridge the financing gap by leveraging private sector capital for large-scale infrastructure projects, reducing the burden on public funds. Private sector involvement brings technological expertise, operational efficiency, and innovative solutions to infrastructure development, ensuring long-term sustainability.

PPPs are being used for slum redevelopment and creating inclusive urban spaces. It also facilitates the development of transport networks, energy projects, and digital infrastructure, improving connectivity and fostering economic growth.

Successful PPP models incorporate community engagement, ensuring that infrastructure projects align with local needs and promote social inclusion.

How are governments in the Middle East leveraging sovereign wealth funds to accelerate climate-resilient growth sectors while reducing reliance on hydrocarbon-driven revenues?

Governments in the Middle East are strategically using sovereign wealth funds. These funds, including the Abu Dhabi Investment Authority (ADIA), Mubadala, Saudi Arabia’s Public Investment Fund (PIF), and the Qatar Investment Authority, are playing a pivotal role in shaping a more sustainable economic future.

SWFs are channelling significant capital into clean energy projects, such as solar and wind power, and sustainable urban development, including smart cities and eco-friendly transportation systems.

The Middle East has seen a surge in ESG (Environmental, Social, and Governance) investments, with sustainable assets expected to surpass 50% of portfolios within five years.

Investments in emerging technologies such as carbon capture, hydrogen energy, and sustainable agriculture are helping accelerate the transition to a low-carbon economy.

UAE hosted Cop 28 in November 2023, now region is expected to further strengthen its commitment to sustainable finance, leveraging SWFs to spearhead climate-resilient growth.

In regions facing chronic water scarcity and energy constraints, how are emerging market players balancing industrial expansion with sustainability in their growth playbooks?

Industries are adopting advanced water recycling, desalination, and precision irrigation systems to minimize freshwater consumption. Many companies are shifting towards solar, wind, and hybrid energy solutions.

Businesses are implementing waste-to-energy initiatives and sustainable supply chains to optimize resource use and reduce environmental impact.

Governments and investors are pushing for stronger environmental, social, and governance (ESG) frameworks, ensuring industries align with global sustainability standards. Partnerships between governments, private enterprises, and international organizations are fostering sustainable infrastructure and climate-resilient industrial zones.

How are digital infrastructure and fintech adoption unlocking economic participation for MSMEs and informal sectors in rural pockets of South Asia and the Middle East?

Fintech platforms are bridging the financing gap for MSMEs by providing easier access to credit and reducing reliance on traditional banks. The rise of mobile wallets and digital payment systems is empowering small businesses to transact seamlessly, even in remote areas.

Some digital finance providers are offering flexible loan structures, reducing dependency on collateral-based lending. Fintech innovations are also helping to improve financial literacy, helping entrepreneurs make informed decisions and scale their businesses.

These developments are unlocking new economic opportunities, fostering entrepreneurship, and driving inclusive growth across rural regions. The continued evolution of fintech will further accelerate financial empowerment in these markets.

What policy innovations and regional trade collaborations will shape the trajectory of green industrialization and equitable economic resilience in emerging markets by 2035?

As far as the policies are concerned, governments are expected to implement targeted policies that promote clean technologies, renewable energy, and sustainable manufacturing. Trade mechanisms like carbon tariffs will incentivize industries to adopt greener practices while ensuring competitiveness. Policies supporting cross-border technology exchange will enhance green industrial capabilities in emerging markets. Green bonds, ESG-linked investments, and subsidies for low-carbon industries will certainly drive economic transformation.

Countries will negotiate trade deals that prioritize environmental standards and sustainable supply chains. Regional partnerships will facilitate large-scale clean energy initiatives, reducing reliance on fossil fuels. Trade policies will encourage resource efficiency, waste reduction, and sustainable production models.  Emerging markets will establish special economic zones focused on green industries and climate-resilient infrastructure.