Economic growth in sectors other than the oil industry is being aggressively pushed in GCC countries. To further diversify their economies, countries in the Middle East have prioritized massive investments in tourism, the financial sector, and even novel initiatives like the metaverse.
Regional business leaders are focused on transforming their businesses to ensure resilience in the face of global economic and geopolitical volatility and concerns around longer-term viability.
Adoption of ESG imperatives should play a major role in the transformation of the Gulf Cooperation Council (GCC) countries’ economies.
ESG is a framework used to evaluate a company’s performance and impact in the areas of sustainability, social responsibility, and corporate governance. The topic has gained significant importance as investors and stakeholders increasingly prioritize sustainable and responsible investments.
Companies that actively embrace and take meaningful steps towards achieving ESG targets are viewed as more future-proof and ultimately more profitable.
New economic strategies in GCC countries will focus on technology and a shift towards renewable energy. Saudi Arabia, UAE, and Qatar are among the Middle Eastern countries that have set ambitious climate goals in line with the Paris Agreement, though major shifts need to be made as soon as possible for these goals to be met.
Greater integration between the countries in the region, which have historically maintained closer trade relations with countries in Asia and Europe, could also be a potentially enormous driver of growth.