Photo: Fayez Nureldine/AFP via Getty ImagesThe Arab world has historically been a hotspot for global risks. While the region is not homogenous, three interdependent areas are key to strengthen resilience in all countries: economic diversification away from dependence on commodity or low-value exports, private sector growth to enable job creation, and future-proofing skills. The Gulf countries’ economic development plans — usually dubbed Vision 2030 or the like — have aggressive targets and high ambitions. Private sector growth is necessary for political stability, but it has been hampered by heavy regulatory environments, rent-seeking behavior and governance challenges, and political uncertainty. Progress in diversification and private sector development has been slow, and although the region is entrepreneurial, youth unemployment remains a key issue.

Source: The North Africa Journal April 12, 2021 21:56 UTC