.jpg)
Dubai: The Middle East needs $4.3 trillion (Dh15.75 trillion) to build infrastructure to accelerate economic growth and help create jobs for 50 million in the next 15 years, experts at the Middle East and North Africa (Mena) Economic Forum said at a panel discussion.
Middle East, with a population of about 400 million, hosts 60 per cent of world’s oil wealth and 40 per cent of gas reserves. Yet 23 per cent of the population lives with less than $2 (Dh7.3) per day. Its population growth of 2.2 per cent is double the global population growth, according to the World Bank.
While most expert panelists said, the region should liberalise the investment laws to open doors for foreign direct investment (FDI), others say, education and skill development is crucial for the overall social development and economic growth of the region.
“We have many good success stories and we could build on those successes and replicate in where it is not there,” Saif Al Ghafli, Chief Executive of Al Hosn Gas, told at the forum, held at the American University of Sharjah.
I completely agree about education and infrastructure, both grossly lacking in the MENA, and both immensely essential for sustainable development.
ReplyDeleteSME investment is another essential component to development. While large conglomerate firms have been booming in the middle east (namely GCC), small "mum'n'pap" businesses have largely remained stale (think about your bakkala and local garage). NBK is in the process of developing a new SME department, in order to capitalize on this heavily underfunded sector. Only obstacle... risk-aversness... GCC banks are known for to be very conservative and picky investors, so I think the growth here will remain slower than overall output.