Why Are the Gulf Countries Leading the Way in Technological Development?
For decades, whenever the Gulf countries are mentioned, the first thing that comes to people's minds is oil, which is really the wealth that contributed to the renaissance of these countries. But it is noteworthy that many have not yet paid attention to the volume of investment made by the Gulf countries, in recent years, in developing infrastructure and preparing the ground to keep pace with global development and shifting from dependence on oil, to a significant diversification of the economy.
During my participation in the Gulf Vision Conference “VisionGolfe 2023” held at the French Ministry of Economy in Paris, in which more than 700 companies from the Gulf and France participated, it was clear that the role of the Gulf countries has turned into an urgent need at the global level but from a new perspective, beyond being the main source of oil with what means huge financial possibilities. Today, these countries are transforming from a recipient of knowledge, to a hub for the development of global experiences and innovations.
A Secure Haven Amidst Global Crises
At the same time, the world is mired in several interconnected crises, starting with global warming and its dangerous repercussions, the Russian war in Ukraine, the fierce conflict between American unilateralism and multipolarity, in addition to the inflation, which recorded a high ratio of 8.7% globally in 2022 (according to the IMF). All these factors put the world in complex and dangerous crises, while the Arab countries, especially the Gulf Cooperation Council countries, appear to be the least affected; for instance, they recorded an inflation ratio of 3.6% in 2022. The GCC are the most able to provide alternatives due to their financial capabilities and the speed of taking major decisions.
The conference is the first of its kind and held on June 13 and 14, reflecting the need of European companies to new markets, but mostly the great opportunities available in the Gulf countries that attract innovators from various countries of the world. The GCC are away from global crises and not involved in the Russian-Ukrainian war, which reflects a long-term vision, in how to focus on internal development and growth instead of preoccupation with global alignments. It also indicates an actual awareness of these countries of the sensitivity of this period and the importance of focusing on internal developments.
Strategical Pans
It was clear at the conference, through some of what I heard and some of the discussions I had, that the availability of funds in the Gulf, and the speed of decision-taking at the highest levels and the progress of implementation of ambitious plans are what is needed by various developers,
even giant companies. Therefore, the Strategic long-term plans developed by the various Gulf countries, the largest of which is Vision 2030 of Saudi Arabia, have made it a primary destination for companies from different sides of the world, not for export as usual, but to develop world most needed environmental solutions among other solutions in various fields. It is necessary to mention here, some of the projects that helped the Gulf countries in their endeavor to initiate solutions rather than receive products. For example, since everyone talk nowadays about renewable energy and seeking to reduce climate change affected by global industrial development, Abu Dhabi was the first to establish Masdar City in 2008, 15 years ago, which relies entirely on renewable energy with investments of more than 30 billion USD in renewable energy projects and various environmental solutions in more than 40 countries around the world. It generated 18,000 gigawatts per hour of clean energy and converted 10 million tons of carbon dioxide, making it a global model to learn from.
Likewise, Qatar, despite its small population, is now home to six of the world's top universities in various fields, including engineering and manufacturing, such as HEC Paris, Georgetown University, and Cornell University.
Dubai's success in becoming a global tourist destination is not a “déjà vu”, but a global example, especially as the emirate is located in a difficult geographical area. According to the Department of Economy and Tourism, Dubai welcomed 14.36 million visitors in 2022 and more than 6 million visitors between January and April 2023.
All of this is in addition to the development of the transport and logistics industry, which has ensured high efficiency in transport in various port authorities, such as Dubai Ports, Qatar, Saudi Arabia, and Agility Kuwait, which had a total profit of 2.8 billion USD in 2022.Whatever it is, the way you tell your story online can make all the difference.
Source: Business France
Leading the Way
Beyond that, there is in these countries, three of the largest airlines in the world, Qatar, Etihad and the Emirates, with a large aircraft fleet, which have transformed them into a global aviation hub, and a transport that reaches all over the world. This is not everything, as these countries are working on the development of smart transport, as Dubai has taken another major step towards this field and is about to start relying on unmanned Aerials for transport and delivery, and we have seen, days ago, the first Saudi experience in the production of an unmanned Aerial for this purpose as well.
Although Saudi Aramco is known as the public oil company, it is a pioneer in the use of artificial intelligence in heavy industrial sector, which reduced the risks of oil extraction by predicting plant failures, reducing transport costs and other solutions, making it a global example of how to use artificial intelligence in large industrial facilities.
As well, NEOM, the transboundary city project, is not only using the latest innovations, it is developing several solutions to make it a model city for global challenges with its four zones: “Line” a sustainable destination for urban living powered by renewable energy, Sindalah and Trojena for entertainment destinations, and Oxagon, a modern port that adopts a 4.0 industry approach and circular economy. NEOM also invests directly or indirectly in many startups around the world and experiments its products.
A day before the conference in Paris, King Abdulaziz City for Science and Technology (KACST), and China Electric Power Equipment and Technology Co., Ltd. and Beijing Smart chip Microelectronics Technology Company Ltd. signed a memorandum of understanding. The objective is to establish a center for the design and manufacture of electronic chips, to promote science and technology to look for research and development so they can meet national, regional and global challenges, and to cooperate in the design and manufacture of electronic chips and their application in the fields of energy digitization, smart grid and smart cities.
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef in a discussion during the Vision Golfe 2023 (Source AN)
After all, whoever came to Paris wasn't expecting anything new to do with oil. Major international companies have come to explore ways to invest in the Gulf countries, and how to reserve a place on this highway that these countries are traveling at record speed, and with modern ideas that match the most advanced countries.
The world is in crisis and the Arab Gulf countries are more able to secure the needs; from financing to a favorable work environment and stability, and most importantly the clear intention to invest in offering solutions to global challenges, through their long-term plans that will transform them from a recipient to a global tributary in the next ten years.
Entrepreneurs are heading east towards the Gulf countries and the rest of the Arab countries should take advantage of this opportunity.