WGS 2026: Ray Dalio warns of global capital war

Dalio emphasized gold’s role as a safe asset in turbulent economic and geopolitical times.
Photo: WAM

At the 2026 World Governments Summit (WGS), Ray Dalio, Founder of Bridgewater Associates and Dalio Family Office, joined CNBC’s Dan Murphy to analyze how geopolitical shifts, economic cycles, and strategic policy decisions are redefining the future of governance.

Five global shaping forces

Dalio utilized a historical analysis spanning more than 500 years to outline five major forces that are influencing global markets and government decision-making today. These primary forces consist of the monetary and debt cycle, internal political divisions, shifts in the global geopolitical order, acts of nature such as pandemics and climate events, and major technological transformations.

He explained that the world is currently witnessing a breakdown of long-standing monetary, political, and geopolitical systems, which mirrors transitions that historically occur only once in a generation. He identified rising debt levels, growing political polarization, and the weakening of multilateral global frameworks as the key drivers behind this significant shift. When reflecting on the region, Dalio described the UAE and the Gulf as highly investable, citing the long-term leadership focus on education, stability, and social cohesion found there.

He specifically praised the development model of the UAE, noting his own long-standing engagement with the country and the vision originally laid down by the late founder Sheikh Zayed bin Sultan Al Nahyan. He remarked that the UAE has successfully created an environment of civility and vibrancy that enables people to be productive and innovative together, explicitly telling the nation, “Just keep doing what you’re doing.” He further encouraged governments to continue fostering environments that support innovation, productivity, and sustainable prosperity.

Strategies for wealth preservation

Regarding wealth preservation, Dalio stated that gold remains the safest store of value in the current environment, particularly when considering elevated debt, geopolitical tensions, and the increasing use of capital as a strategic tool. He highlighted the role of gold as a key reserve asset and effective portfolio diversifier for governments, central banks, and sovereign wealth funds, while urging a focus on long-term strategic allocation rather than short-term trading. Dalio also warned that the global economy is approaching the threshold of a capital war, a state where financial assets, capital flows, and sanctions could increasingly be used as instruments of geopolitical leverage alongside trade measures. He noted that such historical periods typically lead to capital controls and significant changes in reserve asset strategies.

On the topic of geopolitics, Dalio suggested that the international system is moving toward a power-based order shaped by economic, financial, and military strength rather than consensus-driven multilateral institutions. He concluded by stressing the importance of diversification and neutrality, noting that neutral countries have historically shown greater resilience during periods of global conflict.

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