Summit discusses prospects of economic growth in Mena region

The Economy Middle East Summit 2024 was held on Wednesday  at the Abu Dhabi Global Market (ADGM), in the presence of high-profile leaders who shared valuable insights under the theme “Accelerating Future Growth”.

The event brought together top-tier attendees including Abdullah Bin Touq Al Marri, Minister of Economy.

Salem Al Darei, CEO of ADGM Authority, delivered the welcome notes before the summit hosted several panel discussions. The summit’s agenda focused on key challenges and opportunities in banking and finance, technology, hospitality, tourism and the future of mobility.

The event focused on navigating the global economic landscape beyond 2024 and emphasised the Mena region’s economic outlook amidst new global realities. Discussions explored tomorrow’s digital financial services landscape and highlighted the significance of tourism as a key economic driver. The event also featured insights into future technology landscapes and fireside chats with key industry figures including Hatem Dowidar, Group CEO, e& and Badr Al-Olama, Director General, Abu Dhabi Investment Office, providing further perspectives on economic development and innovation.

Abdulla Bin Touq Al Marri, Minister of Economy, confirmed that the UAE, thanks to the directives of its wise leadership, has made great strides in diversifying its national economy and shifting towards a flexible economic model based on knowledge and innovation. As a result, the non-oil sector today accounts for 74 per cent of the country’s total GDP. This confirms the effectiveness of the advanced steps we have adopted to further economic diversification, in line with the goals of the ‘We the UAE 2031’ vision and the UAE Centennial Plan 2071.

In his speech at the summit, Bin Touq said, “The UAE continues its efforts to provide an incubating environment for conducting business and economic activities and develop flexible and competitive legislation and economic policies that will enhance the country’s attractiveness for foreign investments through establishing a suitable economic climate for investors, capital owners, and entrepreneurs. The most notable developments in this regard include the granting of 100 per cent foreign ownership of companies, the modernisation of visa and residency systems, and the introduction of self-employment and long-term residency pathways, which contribute to strengthening the country’s ability to confront global economic changes. They also contribute to consolidating its position as a leading destination for business and investment.” Bin Touq pointed out that the summit serves as a key platform to shed light on the most prominent shifts in the global economic dynamics, and how to benefit from them in promoting sustainable economic growth at the local, regional and international levels, especially since the global economy is going through a state of uncertainty.

Roberta Gatti Chief Economist to the Mena region, The World Bank, said, “The Mena region is returning to its pre-pandemic trend of low growth, in the context of a global economy that is decelerating for the third consecutive year. Mena’s gross domestic product (GDP) is forecast to rise to 2.7 per cent in 2024, which is a tepid increase from 1.9 per cent in 2023. This outlook is marked by uncertainty, amidst the conflict in the region and rising levels of debt. In addition, rising debt is heavily concentrated in oil-importing economies, which now have a debt-to-GDP ratio 50 per cent higher than the global average of emerging markets and developing economies. Oil importers in Mena are borrowing against an uncertain future. In the past decade, they have not been able to grow or even inflate their way out of debt, stressing the need for fiscal discipline and debt transparency, when debt stocks increase due to below-the-line spending. For oil exporters, the challenge is one of economic and fiscal-revenue diversification. This is because of the structural change in global oil markets and the rising demand for renewable sources of energy.” In the first panel discussion, ‘Economic Frontiers: Navigating the Global Landscape in 2024 and Beyond’, speakers included Dr. Mahmoud Mohieldin, UN Special Envoy on Financing the 2030 Agenda for Sustainable Development and Executive Director, International Monetary Fund; Chris Williamson, Chief Business Economist at Standard & Poor’s Markets Intelligence; and Andrew Torre, Regional President of Visa for the Central and Eastern Europe, Middle East and Africa region.

The session was moderated by Ziad Daoud, Chief Emerging Markets Economist, Bloomberg Economics, and highlighted the importance of strategic economic diversification, innovation ecosystems and the role of foreign investments. It also discussed emerging industries, investment opportunities, and the role of the Middle East in the rapidly evolving international business environment.