DUBAI: The Gulf Cooperation Council (GCC) states have the potential to become a new engine of global economic growth through economic diversification in the post-oil era.
A new report released by KPMG Lower Gulf and the World Governments Summit (WGS) examines how GCC countries can benefit from the best of both worlds – economic diversification and centralised Project Management Offices (PMOs) – to develop capabilities and collaborate across boundaries.
Unlocking Diversification in The GCC States, released at WGS 2024, outlines the fact that economic diversification is a high-stakes undertaking that calls for a paradigm shift in the way GCC states approach project management. Not only do they need to create an ecosystem that invests in public sector capacities and human capital, but they must also unpack complexity and focus on long-term, ultra-high-risk projects.
Emilio Pera, CEO and Senior Partner at KPMG Lower Gulf, said, ‘Economic diversification in the GCC is both a necessity and an opportunity. With v
isionary leadership, informed policies, and a focus on sustainable development, the GCC nations have the potential to chart a new economic trajectory, one that is resilient, diverse, and in tune with global economic evolution. As the KPMG-WGS report underscores, economic diversification is vital for the long-term economic stability and prosperity of the GCC countries.’
Mohamed Yousef Al Sharhan, Managing Director of the World Governments Summit (WGS) Organisation, said, ‘The report published by WGS and KPMG is a significant contribution to original research on economic diversification, and especially important in today’s world when nations are recalibrating their energy strategies and aiming for a carbon-neutral future. In this new era, the demand for new forms of energy is rising sharply. We hope this report supports governments and policymakers with insights on economic diversification, including the challenges and opportunities ahead.’
With changing global energy dynamics and the push towards sustainabil
ity, the world’s energy priorities are evolving and GCC states are diversifying their economies away from hydrocarbons. National agendas such as Saudi Arabia’s Vision 2030, Oman’s Vision 2040, the Dubai Economic Agenda D33, and the UAE’s Vision 2031 are anticipated to transform GCC economies into efficient, knowledge-driven engines of prosperity.
The role of centralised PMOs in the GCC is becoming increasingly significant as the region transitions to a post-oil era and achieves sustainable and diversified economies. They are instrumental in ensuring the successful execution of strategic projects across various sectors, and their involvement in these initiatives is crucial to realising the GCC countries’ efforts.
The establishment of centralised PMOs would further amplify the importance of having institutional repositories of knowledge, providing centralised guidance, support, best practices, and fostering a culture of excellence in project management across the region. By capitalising on the opportunities p
resented by national visions, PMOs can contribute to the transformation of the GCC’s economy and help shape a brighter, more sustainable future for the region and the world.
According to the study, the onset of the Fourth Industrial Revolution, characterised by technologies such as AI, robotics, and nanotechnology, offers myriad opportunities. It offers a new paradigm for production, with modern and digitalised manufacturing facilities using interconnected devices, machines, and systems to deliver unprecedented productivity and efficiency. The GCC, with its financial clout and ambition, is uniquely positioned to not just take part in this revolution but to lead segments of it. Investment in research, fostering partnerships with global tech giants, and nurturing homegrown startups can propel the GCC into the epicentre of technological innovation.
Furthermore, the private sector is playing a vital role. Governments are fostering a conducive environment for private enterprises, with investment-friendly incenti
ves and regulations. This shift is crucial for economic diversification and fostering a culture of innovation, competition, and resilience.
As the global community gravitates toward green initiatives and sustainable practices, the GCC’s strategic pivot toward clean energy, digital economies, and innovative technologies takes on even greater significance. Following global success stories that emphasise property protection, market competitiveness, and forward-thinking policies, the GCC can chart a course toward diversified and sustainable economic growth.
More than 4,000 participants from the public and private sectors participated in 110 interactive sessions at WGS 2024, including 200 speakers from 80 international, regional, and intergovernmental organisations including the UN, the World Bank, the International Monetary Fund, the World Health Organisation, the International Atomic Energy Agency and the Arab League. It also welcomed eight Nobel prize winners and provided a platform for 23 ministerial meeting
s in the presence of more than 300 ministers. In partnership with a select group of knowledge partners, the Summit launched more than 25 strategic reports, focusing on the most important practices and trends in vital sectors.
Source: Emirates News Agency
