Iranian leaders' presence at Davos also coincides with the implementation of the deal agreed to in Geneva that is intended to rein in their nuclear program in exchange for easing sanctions, enabling Iran to pursue new business opportunities particularly in its oil and gas sector.

But Schwab said it would be too early for Iranian President Hassan Rouhani and his foreign minister, Javad Zarif, to start negotiating new investments while at the forum. First, they need to boost international trust that Iran will respect the terms of their nuclear deal.

"We have to create the reality which allows confidence between the different parties, and only in the next phase you can really talk about business," Schwab said of the Iranians' prospects for new oil, gas and other business deals.

Discussions on the Israeli-Palestinian conflict are also expected at the Davos forum, with Israel's Prime Minister Benjamin Netanyahu, President Shimon Peres and Justice Minister Tzipi Livni all attending. The flagging Mideast peace process is a priority for US Secretary of State John Kerry, who is expected in Davos for most of the event, which lasts through Saturday.

Other pressing topics that will likely be touched upon, Schwab said, include climate change, unemployment and the disparity between the rich and poor that could lead to a "lost generation" of youth and social unrest.

China at Daovs:

Chinese FM to join Syria peace talks

Chinese Foreign Minister Wang Yi will leave Beijing on Wednesday for the Syria peace conference in Geneva and the World Economic Forum (WEF) Annual Meeting in Davos of Switzerland.

Davos gears up for economic forum

Zhang Xiaoqiang, vice-chairman of the National Development and Reform Commission of China, Zhu Min, deputy managing director of the International Monetary Fund, Liu Mingkang, former chairman of the China Banking Regulatory Commission, Wang Weiguang, former chairman of the Chinese Academy of Social Sciences, and Jiang Jianqing, former chairman of the Industrial and Commercial Bank of China will attend.

Other highlights to be:

China set to be focus of Davos 2014

The theme for this year - "The Reshaping of the World: Consequences for Society, Politics and Business" - exactly sets out the three dimensions of the world's current circumstances, and it is in this context that the focus will be on China.

Plenty of potential for crises

The high level of public debt in the United States, the eurozone and Japan top the list of risks that will have the biggest impact this year and severely affect the stability of the global economy.