The UAE Government is displaying trust, long-term thinking and innovation to best position the nation for success in the current global economic climate, Professor Klaus Schwab, the Founder and Executive Chairman of the World Economic Forum (WEF), today informed a distinguished audience of UAE government members and key leaders from the business community.
During a private breakfast at the Summit on the Global Agenda 2014, currently being held in Dubai, Professor Schwab claimed that there are fundamental economic challenges facing the world at present, although the UAE’s proven ability to modernize and innovate means that the nation is well-positioned to continue on its long-term growth trajectory. A strong, trusted partnership between the public and private sector is crucial for sustained GDP growth in any country, and this is the environment which has been established in the UAE, Professor Schwab confirmed.
Professor Klaus Schwab said: “I believe the next 10-15 years will be driven by technological innovation and WEF anticipates significant, paradigm-shifting developments in the healthcare, transport, education and the banking sectors. The UAE Government continues to display long-term planning and progressive, innovative thinking which enhances economic growth. Although entrepreneurial forces need to constantly modernized and mobilized, I feel very confident that this will happen as far as the UAE is concerned due to the strong and trusted association between the public and private sectors.”
According to Professor Schwab, one possible pitfall the UAE has successfully avoided is short-term thinking which is today prevalent in a number of industrialized countries and which can hinder a nation’s development and global competitiveness. Instead, the UAE Government has been very successful at fostering a dynamic economic climate in which investors and funding are connected with entrepreneurs and innovators. This engenders technological advancement and, as a result, overall, balanced economic growth.
Commenting on the wider global economic situation, Professor Schwab, added: “Countries such as China and India, which have had unprecedented growth over the past 25 years, are struggling to maintain the rates they have previously set now that they are mature. Slower growth rates in these countries equal lower commodity prices. Globally, I think we will see growth of 3 per cent - leading to doubling of global GDP every 24 years. My greatest concern for the global economy remains the impact of low growth over an extended period.”
Commenting on the views of Professor Schwab and the wider Summit on the Global Agenda 2014, one leader of a prominent UAE-based business, who did not wish to be named, said: “Professor Schwab’s views are in tune with the sentiment of business leaders across the UAE: we feel that there are a huge number of opportunities for growth in the UAE and that the current economic climate, driven by entrepreneurs, is very healthy. This is as a result of the UAE Government which continues to demonstrate forward-looking vision and support to the private sector. The Government has given business confidence which enhances overall growth.”