ASF 2018: Economic And Business Experts Share Positive Outlook For 2019
Leading economic and business experts portrayed a positive outlook for 2019 at the Arab Strategy Forum (ASF) 2018 in a session titled “Arab World Economy…What’s Next”.
Navigating the existing economic challenges facing the region, including the need to create employment opportunities, adapting to technology and fluctuating oil prices, the session posed a question: “Do economic considerations lead political decision-making, or is it the other way around?”
In response, Abdulkhaleq Abdullah, professor of political science in the UAE, highlighted that economy and politics are two faces of the same coin. However, given the impact of unexpected political changes on the economy and the oil prices, politics drives economy. He added that ending the war in Yemen will positively influence the UAE and Saudi economies.
Suhail Mohamed Al Mazrouei, UAE’s Minister of Energy and Industry, shared an optimistic view for the upcoming year stating that the human element and investments in human capital should be at the core of the Arab economies’ strategic plans if the region is to realise a brighter future.
Sami Al Qemzi, Director General of the Department of Economic Development (DED), also expressed an optimistic outlook for 2019, with Dubai’s economy projected to grow between 2.1 and 2.3%, higher than the Arab average. The decisions of federal and local governments to stimulate liquidity and increase the infrastructure budget in line with the upcoming Expo 2020 will also prove a positive factor, he said. Al Qemzi further noted that in spite of the important role played by the private sector in stimulating investment, the sector is still waiting for positive indicators to mobilise.
Commenting on the current landscape facing small and medium enterprises, Abdul Basit Al Janahi, CEO of Dubai SME, said that Dubai has seen a huge reduction in the cost of establishing a new business, and as such expects a rise in the number of entrepreneurs. He also mentioned that there is a clear strategy at the federal and local levels to drive SMEs, highlighting the employment opportunities that such companies can create. On the role of the banking sector in supporting SMEs, he responded that in spite of strategic projects launched by the government, the banking sector has lagged behind.
Dr Ibtisam Al Ketbi, President of the Emirates Policy Centre, noted that an optimistic or pessimistic outlook depends on the presence of a strategic vision and highlighted the importance of prioritising the reformation of education when considering economic policies.
