The recent Union of Arab Chambers gathering in Abu Dhabi brought together esteemed leaders, including H.E. Mr. Ahmed Aboul Gheit, Secretary General of the League of Arab States,and H.E. Mr. Sameer Abdulla Nass, President of the Union of Arab Chambers. The event explored the immense FDI potential in MENA, with Mohamed Hage OAM highlighting strategies, investment opportunities, and challenges in the region.
FDI has played a crucial role in bolstering capital inflows and supporting national development projects in MENA countries. Notably, sectors such as oil and gas, real estate, coal, chemical manufacturing, renewable energy and services, particularly tourism and hospitality, have been the primary beneficiaries of FDI in the region.
However, recent global economic uncertainties resulting from the pandemic and geopolitical tensions, such as the conflict in Ukraine, have exposed economic vulnerabilities in MENA countries.
During his address, Mohamed Hage OAM emphasised the necessity of diversifying investment beyond traditional sectors. He highlighted the immense potential in financial services, mining, renewable energy, tech startups, health services, agriculture, information and communication technology, and food security plans to drive sustainable economic growth in MENA.
Australian companies, renowned for their expertise in these sectors, can cater to the region’s diverse needs. Hage underscored the growing prospects of expanding the MENA-Australia trade and investment relationship into emerging sectors, such as mining services, fintech, agritech, digital and technological-based services, as well as education and training.
Moreover, Hage stressed the importance of upskilling the workforce in the MENA region to maximise the positive impact of FDI, thereby fostering sustainable economic growth. MENA companies have significant opportunities to adopt Australian advanced manufacturing automation, vocational training and technologies, enhancing the region’s knowledge-intensive economy.
Additionally, Hage emphasised the importance of forward-looking economic initiatives and growth strategies that facilitate international expansion and resilient supply chains through cooperation and supply chain enhancements.
Indeed, the UAE and Saudi Arabia’s performance in future focused industries were highlighted during the gathering. According to Kearney’s 2023 (FDICI) Emerging Markets ranking, the UAE leads as the emerging market in the MENA region. Saudi Arabia is also experiencing strong growth in non-oil sectors, with a 3.9% increase in Q1 GDP. Hage attributed this growth to Saudi Arabia’s focus on sectors like mining, renewable energy, agritech, and the digital economy, supported by progressive policies driving private sector development and investment.
Australia is also recognised as a country with regulations and business environments that support FDI investments, capital inflows and entrepreneurship across a range of sectors.
In conclusion, the Union of Arab Chambers’ gathering highlighted stakeholders’ commitment to attract FDI in MENA, with Hage’s insights emphasising the potential for sustainable economic growth and development across various sectors.
