Are you missing out on one of the Middle East’s most promising investment landscapes? The spotlight was firmly on the Middle East and North Africa (MENA) region during the World Economic Forum’s Special Meeting on Global Collaboration, Growth, and Energy for Development in Saudi Arabia. Experts convened to evaluate the region’s economic growth potential and the challenges it faces, revealing a tapestry of resilience and opportunity.
“Peace and stability are essential for economic growth, yet waiting for these conditions could mean waiting indefinitely,” remarked Ahmed Galal Ismail, CEO of Majid Al Futtaim, at the event. His insights were part of a session featuring notable figures such as Jordan’s Minister of Finance, Mohamad Al-Ississ; Saudi Arabia’s Minister of State for Foreign Affairs, Adel bin Ahmed Al Jubeir; and Jihad Azour from the International Monetary Fund (IMF).
Resilience as a Cornerstone
Despite ongoing conflicts, the MENA region has demonstrated remarkable resilience. Karin von Hippel noted, “The resilience in times of uncertainty is a positive aspect of this region. Despite decades of conflict, countries continue to invest and innovate.” This resilience is vital as the IMF predicts moderate economic growth, projecting an increase from 1.9% in 2023 to 4.2% in 2025, assuming the gradual fading of current geopolitical impacts.
Mohamad Al-Ississ emphasized the importance of resilience in Jordan, stating, “Resilience is the foundation for growth and job creation. We must enhance our buffers to withstand unforeseen challenges and transform educational investments into better livelihoods.” Building these buffers is crucial to navigating the unpredictable economic landscape and ensuring stability.
Bridging the Economic Divide
Adel bin Ahmed Al Jubeir highlighted the potential for economic integration in the MENA region, emphasizing that conflict hinders growth. “The region boasts a young population, abundant resources, and strategic location. Our goal is to connect the region with the world, fostering synergies that benefit all,” he said. The Gulf Cooperation Council (GCC) serves as a model of successful integration, with significant increases in trade and investment.
The potential for unlocking nearly $1 trillion in regional GDP through economic integration is vast, according to a report by Majid Al Futtaim and McKinsey. Ahmed Galal Ismail pointed out the opportunity for the region’s leading economies—Saudi Arabia, the UAE, and Egypt—to form a dynamic trading bloc. He stressed the importance of enhancing economic connectivity to foster resilience and bridge the “deficit of hope,” propelling the region towards a prosperous future.
Technology: The Catalyst for Growth
Jihad Azour underscored the role of technology in driving growth, particularly in sectors like artificial intelligence and climate technology. “Accelerating structural reforms will enable investments in human capital and technology,” he stated. Saudi Arabia’s Vision 2030 exemplifies this transformation, aiming to diversify the economy and reduce oil dependence.
The region is witnessing a cognitive revolution with AI, as exemplified by the UAE, Jordan, and Egypt’s efforts to attract tech investments. Ahmed Galal Ismail highlighted the recent establishment of global tech centers in Amman and Cairo, marking a significant milestone. “For the first time, a global tech leader like Microsoft is investing regionally,” he noted, urging for continued amplification of such success stories to inspire further investment.
The MENA region stands on the brink of a new economic era, rich with opportunities for those ready to invest in its promising future.
