• Dr Jihad Azour: “2018 will be the year of transformation”

  • 16 million jobs need to be created in next five years

  • SMEs across region employ 60% of population but have access to only 5% of GDP

Dubai-UAE:  – Adaptability is the Arab region’s core strength, pointed out Dr Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), during the opening session of the Arab Strategy Forum (ASF) 2017 held today at the Ritz Carlton DIFC in Dubai.

Fatima Zahra Daoui, Senior Business and Financial News Anchor at the Al Arabiya News Channel, moderated the session, themed ‘State of the Arab World Economy in 2018’.

Dr Azour said: “Geopolitical turmoil, dip in oil prices, fiscal challenges and economic stagnation have been the underlying issues dogging the region’s economy over the past 18 months. Despite that, I am positive that 2018 will be the turning point and see transformation, further stability and a maturing outlook as policy frameworks, government reform and stabilizing oil prices shore up the overall sentiment.”

He added: “We need to focus on creating growth that is more participatory and inclusive. And to drive this growth, we need to strengthen our SMEs that account for 60 percent of the population’s employment but have access to a paltry five percent of GDP financing. We need to concentrate on cross-border trade and knowledge sharing, we need to create opportunities for our youth and empower our women. Studies have proven that women can increase growth by two to five percent in the medium term in those societies where they are given equal right to education and opportunities, the proof of which we will see in Saudi Arabia in the years to come, as women have now been allowed to drive, thus opening the doors for further reform.”

When asked what set the UAE apart from the rest of the region in economic terms, Dr Azour unequivocally responded – diversification.

He said: “The UAE has the most diversified economy in the Arab world, and it is this diversification that will stand it in good stead moving forward, driven by strong improvement in the non-oil sector. Reform is the key, and other economies would do well to take some notes from the UAE that has taken critical steps to help tame fiscal deficit. Moving forward into 2018, we will see these steps paying off.”

While the ability to adapt and roll with the punches has been of great use to the region, Dr Azour urged governments and societies to change their outlook as much as their policies. He said: “We need to move away from building schools to building skills and creating human capacity, because it is critical that we find a way to create those 16 million jobs needed for our youth, and given the fast pace of the fourth industrial revolution and increasing pressure of AI on traditional jobs, we have a definite challenge on our hands.”

-Ends-

About Arab Strategy Forum 
The Arab Strategy Forum (ASF) is a premier global platform that convenes world leaders and strategic decision-makers from the public and private sector to exchange insights on geopolitical trends that impact the world today. Held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the annual event features panel discussions and expert-led thought sessions, revolving around the state of the world and the state of the Arab world.

Aimed at enabling participants to make informed decisions, navigate risks, and leverage short- and long-term opportunities, the forum analyzes the current Arab and global political and economic landscape, examines conflicts and possible resolutions, and highlights events that are set to leave a lasting global impact. 

© Press Release 2017