Competition between Gulf economies benefits whole region, UAE economic minister tells Arab News

Abdulla bin Touq Al-Marri, the UAE economy minister (2nd from left), appearing on a panel at the World Economic Forum in Davos, said that competition within the Gulf economies was a good thing, and that their trajectories were on an upward path, even in the face of current high interest rates and inflation. (AN Photo/Daniel Fountain)
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  • Trajectories on upward path, even in the face of high interest rates and inflation, says Abdulla bin Touq Al-Marri

DAVOS: Gulf economies are benefiting from competition and continue to show signs of growth because of competitiveness in the Middle East region, the UAE economy minister told Arab News on Wednesday.

Abdulla bin Touq Al-Marri, who was speaking on a panel at the World Economic Forum in Davos, said that competition within the Gulf economies was a good thing, and that their trajectories were on an upward path, even in the face of current high interest rates and inflation.

鈥淚f you look at three years ago, competition was there and competition is always going to be there; the UAE grew, 黑料社区, Oman, Bahrain, Kuwait, the Gulf Cooperation Council grew. I鈥檓 so happy,鈥� he said.

鈥淭he World Bank and the International Monetary Fund are expecting the Gulf to grow in 2024. Competition is really helping growth; show me competition that doesn鈥檛 lead to innovation and growth 鈥� there鈥檚 none.

鈥淲e want competition (in the UAE), because we need innovation, we need movement, we need growth; the bottom is line I want to create jobs,鈥� he added.

Al-Marri said he was not worried about the UAE economy, or Gulf economies as a whole, despite concerns about oil price fluctuations and their being pegged to the dollar.

Bahraini businessman Khalid Janahi agreed and said competition in the region forced all countries to excel.

Concerns for Middle East security, and therefore economic growth, as a result of who might become president of the US later this year are unfounded, according to Janahi.

鈥淚t does not make any difference who will be president of the US to the region; the region has to be smart enough to deal with that,鈥� he said. 鈥淚t does rely on the US, it goes without saying, but if you look at the past four years how they鈥檝e started to diversify their relationships; it鈥檚 fascinating,鈥� he added.

However, Janahi said that it was vital Gulf countries focused on creating conditions that enabled a 鈥渟oft landing, not a hard landing鈥� when a move away from pegging to the dollar inevitably came in the future.

Anthony Scaramucci, a one-time adviser to former US President Donald Trump, discussed the likelihood of his former employer making it back to the White House.

Scaramucci, who has been vocal in his praise of the Saudi delegation in Davos this year and, in particular, of its highlighting of the megaprojects underway in the Kingdom, highlighted Trump鈥檚 legal case surrounding the Capitol Hill riot in January, 2020 and missing CIA files as a major roadblock to him winning the Republican nomination.

鈥淚鈥檓 telling you, Trump is going to lose,鈥� he said. 鈥淵ou don鈥檛 want this guy; you have a tough enough time in the Middle East, with Iran; you don鈥檛 want someone this unstable and impetuous as the American president.鈥�

The 鈥渋nsane鈥� development of non-oil sectors of Gulf economies, thanks to its competitiveness, has turned the region and its cities into some of the world鈥檚 most attractive prospects for its youth and expatriate communities to settle in and 鈥渂uild a life,鈥� according to Julien Hawari, CEO and founder of content creation firm Special Edition.

鈥淔ive years ago, who would have thought that the hottest cities in the world were going to be called Abu Dhabi, Dubai, Riyadh, even Doha? There has been a profound transformation,鈥� he said.

鈥淭here has been one thing missing from the conversation that has been vital, and that鈥檚 the youth empowerment, there has been a way of doing things that has completely transformed these countries, you have young leadership at ministerial level, in the UAE, in 黑料社区, in Qatar,鈥� he added.

Hawari, who said he believes the economies of the US and the rest of the West are lagging 10 years behind those in the Gulf, also rejected concerns over oil price changes hampering development of Gulf economies in the next decade, and backed a mobilized work force to keep driving growth. 

鈥淵es, price of oil will go down, but will the human capital (in the region) change? I doubt it,鈥� he said. 鈥�(The region) has been able to ride through the good times and bad through financial discipline. Hard times will hit the region, of course. If the US, China or Europe suffer, the region is impacted, but what has been happening there is mind-boggling.鈥�