Reforms paying off for the GCC

It’s only natural to roll out reforms when times are tough. But first, they need resolve. Political resolve, and leadership. Some say they are nothing more than a bitter pill for the common citizen to swallow. Other experts go further and said this is all about biting the bullet, whatever that means for the average man and woman. Some belt-tightening is only normal when the going gets rough. But the tough cannot just get going in difficult conditions in a globalised economy, they also have to turn creative, and innovative. Competition can get fierce. Many start from scratch, turn entrepreneurs — seek and find common solutions, and make them work. To put it simply, modern reforms should thrive on ideas. There are new learnings, and better solutions that are more inclusive.

The UAE leadership foresaw the fall in oil prices some years ago and made a serious push towards diversification of the economy. In a sense, the country had a headstart over the Arab world and its GCC partners in a major drive towards further widening the scope of the economy. The downturn in 2008-2009 was a sign that things were not headed in the right direction. The leadership stepped for some course correction — to explore beyond oil and subsidies, and strive for better productivity. The fruits of these efforts are now being seen as the economy is on firmer ground. It is sustainable, which is long-term and will define growth prospects. Dubai, in fact, saw a connected world long before the others. From a trading outpost, it has transformed itself into an aviation and financial powerhouse. Abu Dhabi, which has most of the UAE’s oil reserves, followed suit and saw greater glory in clean energy, trade and space technology. Other emirates are doing their bit to be on track with federal plans to make the economy more resilient from global shocks. As the International Monetary Fund said on Tuesday, more needs to be done. There’s no going back from the process that has been set in motion. Saudi Arabia and other GCC countries have joined the bandwagon. For results to show, it will take time, and patience. Governments should no more be seen as job creators, but enablers, who open the doors for opportunity to private enterprise while setting fair ground rules. Competition and innovation will rule. Brave decisions will follow. Exciting times are ahead.