Arctic economic development is driven primarily by the extraction of natural resources, including hydrocarbons, hard minerals, and fish. This natural wealth is located within remote Arctic marine and terrestrial regions and requires expanded infrastructure and transportation networks.

There is, however, great uncertainty about the future development of Arctic resources. Continuing climate change (and extreme warming of the Arctic) improves conditions for navigation in the Arctic but also complicates the construction of infrastructure because of thawing permafrost. The long-term demand for Arctic hydrocarbons is questionable.

Russia's invasion of Ukraine has changed the security landscape, with Finland and Sweden joining NATO. A tense international situation is increasing investment risks, and an array of sanctions is constraining Russia's Arctic projects.

Despite the challenges, China, Japan, and South Korea have strong national interests in the economic development of the Arctic, associated with shipping, shipbuilding, and resource development. But they are realizing that development will take time.