Chambers of commerce playing key role in GCC economic diversification The quest for economic diversification has been steadily accelerating, and has served as an incentive for chambers of commerce to support the assimilation of further foreign investments into major sectors
competitiveness, innovation, and human development rankings. The economic diversification drive has a vast positive impact and translates into competitive figures and indicators in international economic analyses, which predict that Gulf states will see a nearly 4% growth of non-oil sectors thanks to strategic investments in key sectors. First and foremost, among non-oil revenue-generating sectors is the service sector, which contributes between 50% and 60% of GDP. Then there are the contributions of the trade, industry, and tourism sectors, which feature promising growth outlooks thanks to the joint efforts of governmental entities and chambers of commerce in attracting foreign investments and supporting the expansion of local Gulf companies into foreign markets. Having examined the role chambers of commerce play in encouraging commercial and economic exchange and streamlining capital mobility based on our GCC integration agreements, I conclude by drawing attention to the local UAE landscape, represented by the Federation of UAE Chambers of Commerce and Industry, which includes the Sharjah Chamber of Commerce and Industry. In the course of our work representing business sectors to official bodies, we are witnessing the success of the UAE’s policies to attract more foreign direct investments under a strategic vision that embodies a key element of the “Projects of the 50”, put forward by the UAE in September 2021. One fruit of the economic diversification drive is that the UAE has taken first place amongst countries in the Gulf and West Asia in terms of attracting direct foreign investments, acquiring 37 per cent of total inflows into the region through 2021. Meanwhile, the government continues to coordinate with key sectors in signing agreements that work towards a full partnership with 12 of the world’s largest economies. This is part of a vision to double non-oil foreign trade to more than Dh4 trillion by 2031, compared with the Dh2.2 trillion recorded in 2022. Abdullah Sultan Al Owais is Vice-Chairman of the Federation of UAE Chambers of Commerce and Industry and Chairman of the Sharjah Chamber of Commerce and Industry. It is my opinion that Gulf chambers of commerce possess essential capital that is measured, not by numbers, but by the scale of its impact on diversification. “
Abdullah Sultan Al Owais /Viewpoint
B y reflecting on the economic landscape of Gulf Cooperation Council (GCC) countries, I have observed that the main non-oil, revenue-generating sectors herald a bright future for our region that is characterised by comprehensive development. Of particular note is the Gulf’s prudent official orientation towards attracting more investments to diversify economies, entrench sustainability, and encourage the business sector to harness complementarities and common economic denominators. These elements have become increasingly cemented through agreements and projects that aim towards a joint Gulf market — on top of achievements already made in financial market integration, dissolving customs barriers, and launching the railway project, which will contribute to the development of intra-GCC trade and facilitate the movement of goods and passengers among nations. Despite the fact that the countries of our region depended heavily on oil to achieve economic growth over past decades, the quest for economic diversification has been steadily accelerating, and has served as an incentive for chambers of commerce to support the assimilation of further foreign investments into major sectors. The push towards diversification has also prompted our chambers to invite investors to leverage the advantages and facilities available via agreements between regional countries, including the free movement of capital and other incentives that encourage investment and trade exchange in the Gulf. We can see that the Gulf’s official economic diversification drive takes into account the technological and environmental developments and changes of our day. This has stimulated the business sector to scale up innovative investments in industry, trade, tourism, services, agriculture, health, scientific research, and other sectors. In order to expand, these sectors depend on chambers of commerce to provide visibility and publicise regional opportunities before investors while participating in regional and international exhibitions, conferences, and forums. It is my opinion that Gulf chambers of commerce possess essential capital that is measured, not by numbers, but by the scale of its impact on diversification. Members of these chambers include various industrial, commercial, agricultural, and service facilities, and this fact enables our chambers to play a part in realising the vision of GCC Countries to build an integrated Gulf union with a diversified economy. Chambers can also participate actively in attracting foreign investments while promoting through global platforms the incentives, facilities, and guarantees offered by Gulf countries, as well as their flexible investment environments bolstered by legislation, logistical services, and sophisticated infrastructure. This is at the core of our work as chambers of commerce — we strive to support and advise foreign investors in a way that boosts their confidence, transparency, and governance within the Gulf market, which receives top scores in business,
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INVEST GCC: DAVOS 2024
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