Elite Media Thought Leadership Services
EY commissioned Elite Media to produce the ‘Growth drivers’ report which identifies the four biggest drivers of policy, common across the GCC states. Nationalization, diversification, global positioning and stability are key areas for governments and businesses in the region to consider for the future of GCC growth. The thought leadership report was produced in both English and Arabic languages
High potential industries in the region such as metals production, aviation, sea trade, tourism and financial services are paving the way for more diversified revenue sources. GCC Governments need to commit to supporting new sectors and creating innovative and competitive industries to help diversify their economies.
Welcoming the world into a stable GCC
The GCC’s global economic prominence has risen rapidly in the past decade, with its share in world GDP doubling to 2.2%. The Gulf states are emerging as a globalized economy — their workforces are known for international diversity, their strategic location has translated into new trade and investment partners, and their importance as global investors is growing.
However the Gulf states also face a difficult balancing act of maintaining stability, in particular the social challenge of ensuring that nationals receive acceptable levels of education, healthcare and housing.
“The fast-growing Gulf population has meant that the public sector is struggling to deliver. To realize the promise of diversification and nationalization policies while maintaining social stability, Gulf governments must continue to reform both their schools and universities, modernizing their skill base while retaining their cultural identity. The private sector is also expected to play a major role in tackling the housing shortage, providing improved healthcare services whilst also creating a more heterogeneous job market for nationals and the expatriate workforce,” says Stephen Farrell, Partner, Advisory, EY.
The long-term success of the GCC will lie in welcoming the world into the region, with a focus on attracting global talent with a stake in the long-term economic future of Gulf markets and the desire and ability to motivate and nurture the region’s young people.
“The Gulf opportunity is large, but it is time-bound. Now is the time to take advantage of the region’s short-term attractiveness to become a long-term global magnet. Fine-tuning the Gulf states global positioning, through country branding, improving regulatory environments while maintaining a sense of security and contentment for their citizenry during a period of economic growth and social change, will carry their existing successes into the future,” concludes Gerard.