Video: Business leaders share thoughts on GCC economic diversification
Economic diversification has been the larger goal GCC economies have been working to achieve, as the new era of low oil prices is pushing them away from their years-long dependence on oil.
But such major revamps, like the recently introduced Saudi Vision 2030, among other government initiatives, cannot be figured out overnight.
“This part of the world is fully aware of the need to diversify and the recent drop in oil prices actually justifies all of the plans that governments have made in the past years for going beyond an oil economy,” Samer Bohasli, partner at Strategy & says.
He noted that with a refocus away from oil, an increased focus on digital need to take place, to support the growth and success of what he called a “digital economy”.
“Part of your strategy of diversification is creating new economies, including digital economies… [This includes] the role of governments in enabling digital economies and what they need to do to unlock the potential of the private sector,” Bohsali said.
Providing Dubai as an example, Issam Kazim, CEO at DTCM, says the emirate’s efforts in merging and creating collaborations between the private and the public sector have been contributing to its non-oil economy success.
However, Kazim stated that every country in the GCC has its individual strength and set of drivers to navigate the new era.
“It is very important for all the countries to focus on strengths already available to them,” Kazim said.