Abu Dhabi: National Bank of Abu Dhabi group CEO Alex Thursby has said the greatest opportunity can be found in "new centres of power young cities" and in the fast growing economies along the West-East corridor with two billion of the world's youth living in 48 of the world's least developed economies.

In the next five years growth in emerging markets is forecast to be more than double that in the developed world. "These markets are becoming increasingly interconnected powered by trading and economic blocs" Thursby said on the second day of the Global Financial Markets Forum organised by NBAD.

To change this scenario Thursby called on countries and businesses to shift their focus on cities to pave the way for a more de-centralised urban model where cities become the power brokers of the future.

In his remarks he discussed the transformative role of technology in our lives growing global trade and mobility and reduced renewable energy costs.

Despite these developments the world is suffering from sluggish economic growth a slowing in multinationals' earnings potential and far too many restrictions on broad-based wealth creation Thursby argued. He also urged policymakers and the financial industry to nurture entrepreneurs and SMEs and for governments to create smart policy and innovative regulations that remove barriers to business development. "Fundamentally success will be measured by how we broaden and connect markets reward those who take risks incentivise long-term investment and most importantly de-centralise economic development that improves the living standards for everyone" he concluded. For a panel discussion on the regulatory environment and its impact on doing business Richard Teng CEO of Abu Dhabi's Financial Services Regulatory Authority (ADGM) joined Rashed Abdul Kareem Al Baloushi CEO of Abu Dhabi Securities Exchange (ADX) and Alex Thursby Group CEO of NBAD.

Thursby kicked off the discussion by highlighting the need for "calibration" in today's financial industry which is yet to regain people's trust in banking after the 2008 downturn.

Stringent regulations on capital is concerning and is causing more volatility in the market he noted. On whether banks are ready for Basel 3 a set of voluntary regulatory reforms tackling bank capital adequacy stress testing and market liquidity risk Thursby expressed skepticism of seeing a full agreement for implementation even among G20 countries.

Regulators also need to address key challenges such as cyber security and global liquidity he said. Teng highlighted the ADGM's unique value proposition as an emerging financial hub and the access it provides to local capital. "With the benefit of Abu Dhabi's political security and stability we have become a natural magnet for financial institutions looking to service the region" Teng said.

Al Baloushi said there is a consistent uptick in the number of international investors opening accounts with the exchange. The market continues to be attractive for foreign institutional investors with the value of shares they own increasing to Dh40.1 billion he said.

Addressing concerns about Saudi Arabia's economy El Erian said when an economy is hit by low oil prices it can draw down its reserves take on debt generate income and cut spending. All four options were available to GCC countries and low oil prices were in the interest of the region in the long term he said.

Yanis Varoufakis former minister of finance in Greece spoke about the challenges faced by Europe including the migrant crisis debt currency Brexit and the future of the European institutions.

Former minister recapped the political pressure his government was subjected to to prevent the restructuring of the country's public debt.

When the moderator Mark Blyth Eastman professor of Political Economy at the Watson Institute for International Studies and Brown University asked the question of why Europe was following a policy of austerity when the rest of the world and the IMF itself agreed that it did not make any sense Varoufakis explained that the European Union was focused on how to pretend they are enforcing rules.

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