Mena must not pass up growth opportunities

Dubai: As a social and econ-omic bloc, the Middle East and North Africa (Mena) region presents a compelling picture of contrasts.

With about 6 per cent of the global population — nearly the same as the European Union — and sprawling over 15 million square kilometres — more than three times the area of the EU, the Mena region is a marketplace of unmatched opportunities and a landscape of unprecedented challenges.

The wider Mena region has some of the world's richest countries by per capita income as well as some of the poorest in terms of gross domestic product (GDP). While Mena has some of the world's highest concentrations of high-networth individuals, it also has an estimated 23 per cent of its 300 million population living on less than $2 (Dh7.3) per day, according to the World Bank.

There are vast swatches of empty desert and wide belts of river-fed agricultural land. There are unexplored reserves of mineral resources and sizeable but fast-depleting oil and natural gas resources. Countries in Mena witness the widest disparities in life expectancy, literacy and other social indicators, just as the region has disproportionate econ-omic differences.

Potential for growth

Yet, as one socio-econ-omic continuum, the Mena region offers the largest potential for growth. The International Monetary Fund in its October World Economic Outlook predicts the region will record GDP growth of 4.1 per cent this year — almost double that of 2009. Further, GDP is expected to grow 5.1 per cent in 2011.

The World Economic Forum (WEF) in Mena, therefore, comes at an opportune moment, when countries in the region can take stock of their performance this year, and prepare for new beginnings next year.

The timing couldn't have been better: It is autumn. What can the Mena region shed this season to boost its economic potential? And what can it leverage to augment the generation of ‘green shoots' of prosperity? For policymakers who meet at WEF Mena Forum, the key task will be to address these complicated questions.

Today, along with the rest of the world, the Mena region must take stock of harsher ground realities. It cannot afford to continue forever as the ‘land of untapped opportunities;' the key players in the region must seize the growth momentum that prevails now, to become the ‘land of accomplished realities.'

In this, they must set their eyes not merely at highly charged growth rates but at creating sustainable development models that respect health, safety and environment.

According to ‘Investing in a Rebound,' the 2010 A.T. Kearney FDI Confidence Index, "investor confidence in the economies of the Middle East is higher than in past years," with the UAE ranking among the top 15 investment destinations for the second consecutive survey. FDI inflows to the Middle East grew from $3 billion in 2000 to $78 billion in 2008.

A key driver in unlocking the opportunities offered by the Mena region is its growing youth population. Nearly one in five people living in the Mena is between the ages of 15 and 24, according to the Population Reference Bureau.

Their aspirations are in fact the priorities for the region. Providing them employment, ensuring uninterrupted power and water for a decent lifestyle, delivering world-class health care, and offering them the room to innovate are the primary challenges today. When the ambitions of our youth are taken care of, other societal challenges are effectively addressed too. That is a proven global reality.

This demands a multifaceted approach, where efficiencies in undertaking businesses — from energy to aviation to health care and education — are enhanced by leveraging advances in technology, and by promoting a culture of public-private partnerships.

Partnerships vital

The transformational impact of such partnerships has been proven in both the energy and water sectors in the Middle East. GE has been driving investments in solar-powered desalination plants that meet the growing demand for water in the region, while also working with energy companies to introduce advanced technologies that enhance production and distribution efficiencies.

In socially responsible entrepreneurship, every stakeholder is as much committed to one's enterprise as to the environment and society. This new business culture, which respects man, nature and our collective future, will help create a seamless network of partnerships that tie in all the ‘islands of excellence' that are flourishing in the Mena region for the larger good. The operative word here is innovation.

The Mena region, unlike Europe, has an abundance of resources. Imagine then the power of a Mena-centred ‘Innovation Union' which can catalyse sustainable socio-economic growth by deploying the innovative practices originating from both the public and private sector.

We have the resources; we have the technology; we have the people — all we need is the resolve to act decisively.

Nabil Habayeb, who is participating at the World Economic Forum on the Middle East and North Africa 2010, is President and CEO of GE in the Middle East and Africa.