R&D potential could be key to spark Saudi economy
The impact of COVID-19 and low oil prices has led to even further expected declines in Saudi Arabia's gross domestic product, but research and development could hold the key to an economic reset.
In most countries, research and development (R&D) plays a significant role in sustained economic growth, as it provides a platform for creativity and innovation through the development of new knowledge and job creation.
Yet, many countries undervalue R&D. While some analysts say this is currently the case for a country like Saudi Arabia, there is still hope for the world’s largest oil exporter to transition from being a “rentier state,” or extraction-based economy, to one that leads by example.
Historically, Saudi Arabia has overlooked structural economic reforms that could have helped it claim its much sought-after leadership role in the Arab world. Investments in solar energy could boost energy efficiency and food production to lower spending on imports — two major issues that could have been addressed if R&D became an integral part of the kingdom’s business agendas.
“There are tons of areas we should be focused on, including water purification, sustainable farming and building cooling. These are all areas where we have domestic use cases for innovative solutions,” said Ali Al-Salim, a Gulf-based investor, adviser and co-founder of Arkan Partners, a consulting company.
