Abu Dhabi – Mubasher: Mohammed Alardhi, executive chairman of Investcorp, has highlighted the importance of recent economic and fiscal reforms in the GCC region.

Speaking at the Emirates Center for Strategic Studies and Research’s (ECSSR) 22nd annual conference in Abu Dhabi, the top official stated: “The Arab region today is in the midst of fundamental geopolitical and geo-economic shifts defining the strategic environment in which states, businesses, and individuals will operate in pursuit of their interests.”

“This new landscape has brought to the fore at least three key challenges policy makers will face as they work on mitigating the impact of lower oil prices: sustainability, reform pace and momentum, and regional economic security,” he added, according to a statement.

The chairman of the Bahrain-based alternative investment product manager and provider further emphasised the need for additional collaboration among GCC member states, so as to “adapt to the ever-changing environment in the global marketplace,” the statement showed.

“Streamlining the public sector, adopting a more restrained and responsible fiscal stance is essential. It should go hand-in-hand with labour market and education sector reforms in order to secure more sustainable outcomes,” he said.

Despite some differences, countries have already begun transforming their economies away from oil-dependent activities.

In the UAE in particular, crude and natural gas contribution to the overall gross domestic production (GDP) for 2015 was 32%, suggesting that non-oil revenues contributed around 68% to GDP, the International Monetary Fund (IMF) reported in August 2016.

“This is a huge achievement by the government of the UAE,” Alardhi stated.

Meanwhile, Saudi Arabia’s 2030 vision, the UAE’s 2021 vision, Oman’s National Programme for Economic Diversification (Tanfeedh), and Kuwait’s economic and fiscal reform programme are also on that track, the top official said, noting that they “still require proactive engagement, outreach, and communication and greater involvement of local stakeholders in the policy process.”

The conference was held on 21 and 22 March under the title "The Future of the Region: Oil Price Challenges".