WEF sees India, Gulf nations as leaders of alternative power centers

India and the Gulf nations are likely to lead the growth of alternative power centers, while the Western-led global order continues to decline in influence, the World Economic Forum (WEF) said.

The transition reflects the rise of a more multipolar world shaped by emerging powers alongside China’s rise, the WEF’s latest Global Risks Report 2025 said.

“The Western-led global order is expected to continue its decline over the next decade but will remain an importance locus of power. Alternative power centers are likely to strengthen, not just led by China, but also by key emerging powers, including India and the Gulf states,” the report said.

The WEF’s annual global risk report highlights key risks, including technological acceleration, geostrategic shifts, climate change, demographic bifurcation, and the interactions these factors have.

“The ensuing risks are becoming more complex and urgent, accentuating a paradigm shift in the world order, characterized by greater instability, polarizing narratives, eroding trust and insecurity,” it said.

The report warns that the current governance frameworks seem ill-equipped to address both known and emergent global risks or counter the fragility that those risks generate.

“Looking back over the past two decades, environmental risks have steadily consolidated their position as the greatest source of long-term concern,” Saadia Zahidi, managing director at WEF, wrote in the 20th edition of the Global Risks Report.

“Environmental problems, from extreme weather to pollution, are here now, and the need to implement solutions is urgent,” Zahidi said.

The latest findings in the WEF’s annual global risks perception survey draw on input from more than 900 global leaders and 100 experts, whose key concerns include state-based armed conflict and geo-economic confrontation, with worries that conflicts could worsen or spread in places like Ukraine, the Middle East, and Sudan.

The report warns that world fragmentation is reshaping international relations and challenging existing structures, while emphasizing that global cooperation is crucial. Major powers are turning inward to address domestic concerns rather than strengthening multilateral ties, it added.

Sixty-four percent of respondents foresee a more multipolar or fragmented global order, where middle and great powers set regional rules.

The report also explored a range of risks, including conflict, trade wars, technological polarization, pollution, biotech, and super-aging, which may pose serious long-term challenges.