Diversification, innovation can lead economy
dubai — A diverse economy which stems from both the private and public sectors working hand in hand to meet the needs of the future through digitalisation and a focus on supporting small and medium sized enterprises (SMEs) is going to be sustainable in the long run, experts at a conference discussed.
Speaking at the 2017 Euromoney Emirates Conference, business leaders and financial experts from around the world were informed that they need to prepare themselves for a financial revolution as global commerce and consumer spending heads toward cashless societies and the world turns to innovative economies. The conference is being held under the patronage of Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah, and organised by the Sharjah FDI Office.
Experts at the event discussed how investment locations of the future will need to be innovators, since innovation will be desired in both public and private sectors as well as the need for finance and in particular equity risk capital.
“Innovation is key to building new companies and sustaining growth,” said Richard Banks, consulting editor, Euromoney Conferences, in his opening remarks. “This is going to be increasingly crucial in the next 30 years as we witness an increase in the number of jobs being automated and the replaced human workforce looking to newly created jobs in different non-traditional spheres.”
Technology advancements
Younis Haji Alkhoori, undersecretary of the UAE Ministry of Finance, also spoke about the latest advancements in technology and how they are impacting business models across the world. He explained that the introduction of new technologies may seem disruptive in the beginning, but that businesses will eventually absorb the shock and adapt, becoming better equipped to benefit from an innovative business culture and enjoying the technological competitive advantages that result from it.
“It is a fact that the speed at which technology has developed has left many confused, including the industry. Numerous companies have disappeared and have been replaced by new business models, which are radically different. Airbnb, Facebook and Uber, for instance, where they
The speed at which technology has developed has left many confused, including the industry Younis Haji Alkhoori, Undersecretary of the UAE Ministry of Finance
have no content, no taxis and no residential units, and yet are the largest in their field,” he said.
Marwan bin Jassim Al Sarkal, CEO of Shurooq, also highlighted how the UAE and other countries in the GCC region have a very young workforce that is open to adopting new technologies at a faster rate than their predecessors.
“An important question that we need to be asking ourselves is what the financial markets will look like in the next 30 years. We are living today in the early stages of a financial revolution. Money is changing, and we might not even need wallets in the next few years. The mobile paying economy is estimated to serve us $500 billion by the end of this year. In addition, almost $5 trillion have been spent on IoT technologies,” he said.