Unlocking Opportunities Along the New Silk Road: GCC and UAE Embrace Growth Potential

GCC, 16 May, 2024 :  A recent report from global consultancy firm Oliver Wyman sheds light on the significant economic opportunities emerging along the New Silk Road, spanning across Asia, the Middle East, and North Africa (MENA). With a population of 4.9 billion and representing over 40% of the global economy, this region is poised for unprecedented growth and connectivity.

The report highlights the pivotal role of Gulf Cooperation Council (GCC) countries, particularly the UAE, in diversifying their economies beyond oil through investments in sectors like financial services, logistics, tourism, technology, and manufacturing. Notably, Saudi Arabia and the UAE's long-term strategic plans are driving this economic transformation.

Key themes covered in the report include energy transition, mobility, financial services, supply chain, emerging payments, and digital disruption. It outlines actionable steps for both private sector and government organizations to thrive in this evolving landscape.

According to Adel Alfalasi of Oliver Wyman, the New Silk Road region is experiencing economic opportunities driven by energy transition, supply chain disruptions, and geopolitical tensions. By 2040, the region is projected to account for 48% of global GDP, with significant contributions to global supply chains.

The New Silk Road is vital to global supply chains, holding a substantial share in exports of semiconductors, clothing, and oil. Connectivity is on the rise, with nearly 60% of trade activity occurring within the region.

Regulatory frameworks, including regional free-trade agreements like RCEP and CPTPP, are facilitating trade and investment. As the region navigates geopolitical and environmental challenges, there's potential for greater collaboration, connectivity, and capital growth.

Ben Simpfendorfer, a partner at Oliver Wyman, emphasizes the importance of companies, investors, and governments adapting to capitalize on increased connectivity. Private companies should establish cross-market strategies, while governments should leverage resources to facilitate trade and investment flows.

In summary, the New Silk Road presents immense opportunities for economic growth and collaboration, requiring strategic alignment and innovative approaches from all stakeholders to maximize its potential.

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