Oil-exporting countries in the Arabian Gulf must foster innovation using technologies such as big data, 3D printing and the global brain to help diversify their economies and offset falling revenues from crude oil, economists and companies said.
The IMF's adviser to the Middle East and Central Asia Department, Raja Al Marzouqi, told a conference in Riyadh that the role of the private sector was critical in supporting the future development of these economies.
"Governments can't achieve sustainable development without the private sector," he said, according to the London-based Al Hayat newspaper yesterday.
Meanwhile, Tim Callen, the head of the IMF mission to Saudi Arabia, said that lower oil prices could cost Gulf economies about US$300 billion in lost revenue this year and that greater diversification was the solution, reported the Asharq Al Awsat daily yesterday. Mr Callen said that Saudi Arabia should work on supporting the private sector through training and the development of the education sector.
Brent crude prices have fallen more than 50 per cent from their peaks last summer.
According to Rania Rostom, the chief innovation officer for GE in the Middle East, North Africa & Turkey, promoting local human capital and encouraging the student and research community is key to identifying and incubating innovative ideas.
Innovation - from the development of talent to the implementation of technology - is critical for economic growth, and it can also address major development challenges such as inclusion and sustainability.
According to the World Bank in a 2013 report, innovation can boost the economy through new products, new uses for existing products and increased efficiency.
For GE, the region's key areas for the future are energy infrastructure, education and jobs, and the most innovative and nimble countries will lead growth.
"This is central to our . approach, where we work with our local partners, who best understand the region's requirements, to co-create innovative solutions that bring transformational change - be it strengthening operational efficiency or boosting productivity," said Ms Rostom.
Concepts such as the "industrial internet", which is the integration of big data and big iron; advanced manufacturing techniques such as 3D printing; and the "global brain", which is the merging of human and information networks, will potentially increase productivity and efficiency, "ultimately transforming economies", Ms Rostom said.
The UAE has underlined its commitment to innovation by marking 2015 as the Year of Innovation.
Development of Emirati talent is a key factor in promoting innovation, with a host of companies including Senaat, Ipic, Twofour54 and du present at the Tawdheef recruitment fair, which kicked off in the capital yesterday.
"The Middle East has great potential - it is filled with tremendous talent that needs to be supported to achieve their objectives. This talent needs to be mentored and nurtured so that they can realise their full potential," said Ali Al Rahhal, the mergers and acquisitions manager for the Mena region at Action To Action, a company that supports and advises SMEs in the UAE.
GE said its latest Global Innovation Barometer survey, which includes insights from UAE-based entrepreneurs, says that 89 per cent believe that people in their country live better today than 11 years ago because of the effect of innovation.
malrawi@thenational.ae
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GCC must embrace innovation
The UAE has underlined its commitment to innovation by marking 2015 as the Year of Innovation.
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