For much of the twentieth century, global investment was dominated by developed economies such as the United States, Western Europe, and Japan. While these markets remain influential, a powerful shift is under way. Emerging markets — countries experiencing rapid industrialisation, urbanisation, and growth — are increasingly reshaping the investment landscape. For investors, this trend offers both exciting opportunities and complex challenges.

What do we mean by “emerging markets”?

The term emerging markets generally refers to economies that are moving from low to middle income, characterised by fast growth, increasing integration into global trade, and developing financial markets. Examples include China, India, Brazil, Mexico, South Africa, Indonesia, and Turkey, among others.

These countries often share features such as:

• Expanding middle classes with growing consumer power.

• Rapid infrastructure development.

• Younger populations compared with ageing developed nations.

• Rising foreign investment and improved governance.

While no single definition exists, emerging markets typically sit between the “frontier” (less developed) and “developed” categories.

Drivers of change

Several forces are propelling emerging markets to greater prominence:

• Demographics: Younger, growing populations are fuelling consumption and providing a labour force for industries of the future.

• Urbanisation: Mass migration to cities drives demand for housing, infrastructure, and services.