Middle East needs new economic ideas and projects

The one-day Arab Strategy Forum had several takeaways. The most important being that next year would see more ideas and strategies bearing fruit in the region. Natalia Timirisa of the International Monetary Fund called for a new model of economic thinking and acting on decisions taken for economic growth. She pointed out the urgent need for diversification in the economic models of oil-producing countries who are coming to terms with the reality of sticky oil prices. What seemed as a temporary phase earlier has emerged as a permanent rude shock for the region, and calls for a different approach. Commendably, the UAE has drawn a fairly detailed blueprint of its economic vision 2021 that allows it to make serious shifts in its revenue model. Concerted efforts are also being made through a multi-pronged approach to invest in people, and ensure a more knowledgeable and skilled soft power that can drive the next phase of growth for the country.

It is important that the region strikes the right balance on the economic and social fronts. Almost one million young people are expected to join the workforce in the next six years. A growing and stable regional economy will offer more opportunities for them that a stagnant one. Finding solutions to issues of conflict is also important. Year after year, the forum has been a great platform for churning of ideas, debates and discussions. It was at this forum last year that economist Nouriel Roubini warned that low oil prices are more permanent in nature than transitory. He warned oil producing countries to press ahead with economic diversification and encourage investments in the private sector. This year, we saw most of these suggestions being realised. And now, the collective call is to strengthen efforts to root out terrorism, create a stronger social economy, and stabilise the region that is grappling with sectarian issues and violence. In the wake of limping global growth, diversified economies will be able to chug the engines of regional growth faster and create prosperity for all.