The unforeseeable situation that came hurling upon everyone due to the pandemic has caused economic diversification in the Kingdom of Saudi Arabia and United Arab Emirates. Undoubtedly, the challenges are complex, but the economic turnaround does not seem so bleak after all. With the implementation of productive strategies and technological advancements, the Saudi and UAE markets are bound to prosper and soar even higher. With the world forced to transition and change in the blink of an eye, the current opportunities can open doors for the wellbeing of the Saudi youth. The future generation is the asset, and their success is interlinked with the growth of both the Saudi and UAE markets.
Industrialization – A Driving Force of Innovation
A post-pandemic world can be brighter for the GCC region, while at the same time creating resilient and highly knowledge-based economies. One way is to build a bridge between the local and international talent to interchange business growth for the region. Industrialization is an influential factor for boosting the local economy. For example, UAE’s goal is to expand its industrial revenues for the next several decades to boost its local economy. While in KSA, the ‘Made in Saudi program’ is a unique approach to strengthen the regional footprint of the industries and increase exports. The focus has profoundly shifted towards giving the industrial SMEs extensive access to finance, markets and training.
The future will be overflowing with providing industry programs to entrepreneurs. It will help them learn the core skills of building successful businesses. Moreover, with the Kingdom’s Vision 2030, a revolution involving cutting-edge technologies and the emergence of high value-adding products is incoming.
To retrieve the maximum capabilities of almost 20 million Saudis, partnering with global institutions such as London Business School or Stanford University will significantly aid in enhancing the manufacturing and automotive industries. The aim is to forward the Saudi market towards progression. Facing an economic downturn due to the proliferation of pandemics will not stop Saudi Arabia from moving forward.
In 2021, we can already see the journey towards incredible recovery. Saudi’s economy is expected to undergo considerable growth, according to the IMF. Fortunately, the resources are enough to keep UAE progressing. Abu Dhabi is playing a crucial role in offering substantial support for continuing projects such as Expo 2020 and other small businesses.
The private sector may be facing a few challenges in terms of unemployment or higher VAT (Value Added Tax), but it is expected to attain stability with time.
As long as KSA and UAE continue to focus on attaining sustainable diversification, devising fiscal and economic reforms, the economy will struggle less. Certain factors need to be efficiently mitigated. The concerns of oil price volatility and limited foreign reserves are still present to be resolved.
The need to remain consistent in implementing rapid adaptability is highly crucial. The policymakers are aware of the upcoming issues and are acting strategically. Saudi Arabia’s capitalizing on the green hydrogen marker, installing power plants for the city of Neom are only the start. With the depletion in oil prices, flourishing milestones are an incredible move for the future.