Gulf economies focus on long-term planning

The Abu Dhabi Economic Vision 2030 is a long-term development plan that aims to achieve high growth rates over the next two decades.

Dubai and Bahrain have unveiled strategic plans, which include similar approaches and targets. These plans are considered a qualitative leap in economic and social development programmes in Gulf Cooperation Council (GCC) countries.

The strategies accord special significance to the development of human resources, which indicates the challenges GCC countries will face in the future.

The development of human resources has deep economic, social and political dimensions.

These strategies, likely to be followed by similar strategies in other GCC countries, have a new aspect in common.

They all come in view of the common gulf market, single currency and GCC integration through the unification of rules and regulations, which are almost similar. The joint Gulf vision until 2025 will also give a strong boost to these strategies.

Achieving the targets set by these long-term strategies needs large markets, skilled local manpower and huge capital and investment, all of which are available in GCC states.

The flow of capital, commodities and labour will be easier after the implementation of the common Gulf market agreement.

In turn, this will give a push to the implementation and integration of the announced strategies, especially in the field of human resources and the establishment of major industries, which have production advantages in GCC countries.

Observers of the growth pattern of GCC countries since the 1970s will realise that their progress is not only a result of huge oil incomes - the first driving factor of growth - but also due to political stability and a focus on development.

These countries have created rules and legislation that provide facilities and allow for the effective capital flow and the implementation of public-private partnerships or foreign participation that brings in technology and marketing expertise.

The modern rules and legislation have effectively contributed to attracting investment and skilled manpower, which subsequently met the basic requirements of economic growth.

GCC countries also set up sophisticated infrastructure to attract domestic and foreign investment.

Hence, the GCC's excellence in development has not stemmed from oil resources. Many other Arab countries have huge oil incomes, but have failed to capitalise on the opportunity as a result of political instability, isolation and economic restrictions.

Qualitative leaps in the 1970s and 1980s led to the setting up of universities and higher education institutes. The development of important industries such as aluminium and the setting up of oil refineries, and the educational development of national manpower will ensure that GCC countries will continue to progress.

In the second decade of this century, Gulf countries will focus on developing local human resources and diversifying sources of income by using the advanced infrastructure set up over the years.

The development experience in GCC countries deserves to be studied and examined by other Arab countries, some of which still suffer from domestic conflicts. Others have failed to invest their huge resources in infrastructural projects and development programmes.

As a result, there are no economic benefits that contribute to the improvement of living standards in these countries and finding alternative sources of income.

The strategies will be a topic of debate and analysis in the coming years, because they will provide limitless opportunities to citizens to develop their capabilities and qualify themselves for taking part in the economic and social development process.

GCC states have a golden opportunity as the global financial turmoil changes the economic power centres in the world.

Dr Mohammad Al Asoomi is a UAE economic expert.