Private sector must lead region’s economic diversification efforts
Experts believe that the private sector is the magic pill that will heal the ailing economies in the Middle East region. Fiscal revenues of the region’s economies have been on a sharp decline following the continued drop in crude oil prices since mid-2014.
The non-oil private sector in the region had been of little importance until a few years ago, as governments and oil-driven sectors remained the source of 80 per cent of the incomes of these economies.
As a result, diversification of the economy has been finding its place on the agenda of the region’s governments for the past few years.
“Diversification is of paramount significance to support sustainable long-term growth in the region,” writes MR Raghu, managing director of Marmore MENA Intelligence, which specialises on economic and capital market research, in AMEinfo’s special report titled 7 Strategies to Survive the Rest of 2016.
Raghu is of the opinion that if lower oil prices persist for longer, the scenario will provide a window of opportunity to accelerate the implementation of long-pending structural reforms.
“Reforms that were long overdue in various spheres of economy, such as capital markets, labour and education, are being implemented,” he adds.
It is the private sector that must play an active role in driving the economy forward and it should create more jobs to absorb the growing workforce. For this, the governments should encourage entrepreneurship and competition, as well as take the responsibility to ensure the aggregate demand in the economy is sustained, he states in the special report.
The report serves as a survival guide for businesses operating in the region, highlighting the main areas they need to focus on to survive and thrive during the rest of the year and beyond.
The seven strategies explored in the report are: Innovation, Diversification, Collaboration, Optimisation, Transparency, Talent Management and Agility. These survival tips are further strengthened through insights from the MENA region’s leading business players, thinkers and analysts.
You can download 7 Strategies to Survive the Rest of 2016 for free on the AMEinfo website here.