250 years after Adam Smith's Wealth of Nations, Scotland can once again reshape global finance – Omar Shaikh

Every summer, Edinburgh becomes Scotland’s festival city. But before August hits and thousands of people arrive for the annual feast of arts and culture, the capital will host a different kind of gathering, one focused on the forces shaping the global economy.

More than 3,000 delegates are expected in the city between June 8 and 20 during the second Edinburgh Finance Festival, bringing together leaders from banking, technology, energy, and government. The programme includes the World Conference of Banking Institutes in St Andrews and the Ethical Finance Global Summit, covering the future of finance, climate change, and banking standards, while generating around £1 million for Scotland’s economy.

The backdrop this year feels very different. Events in the Middle East, including the war in Iran and renewed pressure on global energy markets, have shown how quickly international shocks can be felt at home. Prices rise, supply chains come under strain, and uncertainty spreads far beyond the region itself.

We have seen similar patterns in recent years, from the Covid pandemic to the war in Ukraine, each exposing weaknesses in how the global economy is structured. The idea that markets alone can deliver stability has been tested time and again.

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The statue of Scottish economist, philosopher and author Adam Smith (1723-1790) on Edinburgh's Royal Mile, pictured at its unveiling on July 4, 2008 (Picture: Jeff J Mitchell) | Getty Images

Values shape markets

In that kind of environment, finance is not just about returns. It is about stability, resilience, and how well countries and communities can withstand shocks. Alongside the current geopolitics and market impacts, discussions across banking, artificial intelligence, and investment seek to unpack a more fundamental question: what is finance really there to do?

That question feels especially timely. This year marks 250 years since Adam Smith published The Wealth of Nations. His earlier Theory of Moral Sentiments reminds us that markets have always been shaped by human behaviour, trust, and values, not just numbers on a page.

This balance is ripe for reinterpretation. Over the past decade, ethical and sustainable finance has moved into the mainstream. What was once seen as niche is now central to how many institutions operate, with large sums of capital flowing into investments that take account of environmental and social factors.

However, the mood has shifted. Some investors have stepped back under political and regulatory pressure, while others have stayed the course, focusing on long-term change rather than short-term signals. What remains is a committed core prepared to turn ambition into action.

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Billions in renewable energy funds

There are signs of progress. Investment in renewable energy continues to grow, and financial institutions increasingly recognise that supporting the energy transition is not just a matter of environmental responsibility, but one of resilience, security, and economic opportunity. In many cases, it is fast becoming one of the defining growth stories of the modern economy.

Practical examples are already emerging. In April, more than $3 billion flowed into renewable energy exchange-traded funds, marking the strongest monthly inflow in more than five years. It is a reminder that long-term, responsible finance can be commercially serious as well as socially useful, and an uncomfortable truth for fossil fuel incumbents. But progress is uneven, and the wider system remains under strain.

Trust in financial institutions has still not fully recovered from past crises, and that matters. Without trust, markets cannot function properly, investment slows, and the gap between finance and everyday life becomes harder to bridge.

At the same time, new technologies are reshaping how finance works. AI is changing how decisions are made, while digital platforms and new forms of investment are altering who has access to markets and how information is shared.

Scotland’s place in global finance

Rising geopolitical tension and shifting global alliances make building a trusted financial system harder, but more important. In that context, Edinburgh has a distinctive role to play. Scotland has a long financial heritage, from Smith to modern banking and asset management. Edinburgh offers something different from larger financial centres, combining expertise with more space for open discussion.

Over the past decade, Scotland has built strong momentum in ethical and sustainable finance. Its institutions, universities, and professional bodies have helped position Edinburgh as a place where these issues can be explored seriously and constructively.

As the SNP gets back to work in government after its fifth election victory, Scotland has an opportunity to reset its ambition in finance and think more clearly about how its strengths are promoted globally.

Turning ideas into jobs and investment will take a more joined-up approach. Other financial centres, from Luxembourg to Dubai, are clearer about how they present themselves internationally, with dedicated organisations promoting their strengths and bringing together government, industry, and academia.

Scotland is less coordinated, and the next phase needs to be more practical. That could mean clearer international promotion of Scotland’s financial strengths, better coordination, or a dedicated institute focused on green and sustainable finance.

The Edinburgh Finance Festival is about bringing people together to share ideas and challenge assumptions. But the bigger issue goes beyond any single event. Ultimately, these debates are not abstract. They shape pensions, savings, mortgages, and the cost of everyday life.

When war, energy prices, climate pressures, and new technologies can all move markets in a matter of days, finance cannot pretend it sits apart from the world around it. Two-and-a-half centuries after Smith, we are being asked once again to think about what markets are for, and who they should serve.

Scotland has the heritage, expertise, and credibility to help lead that conversation. The next step is to organise those strengths more clearly, and make them count both locally and globally.

Omar Shaikh is managing director of the Global Ethical Finance Initiative. For more information on the Edinburgh Finance Festival, visit www.globalethicalfinance.org/edinburgh-finance-festival-2026