COVID-19 puts Gulf entrepreneurs at crossroads
Innovative businesses could turn the pandemic-induced downturn into an opportunity to transform Gulf economies. Are government policies responsive enough?
Is the COVID-19 crisis a wake-up call for Gulf economies? “Many traditional players were caught off guard" by the economic downturn, said Najla Al Midfa, CEO of the Sharjah Entrepreneurship Center, an entrepreneurship hub in the United Arab Emirates.
Tech entrepreneurs aim to turn the pandemic into a launching pad as Gulf economies are in dire need to hasten their digital transformation. Several obstacles stifle the digital revolution, however, including a shortage of digital skills and a lack of internet freedom, technology-oriented policy makers and research and development investments.
“Startups will play an absolutely vital role in shaping a thriving economy post-COVID,” Midfa told Al-Monitor, saying she believes the economic downturn is an opportunity for startups and tech-based solutions to “integrate the supply chains” of governments and corporates.
The region’s heavy reliance on oil and gas revenues has long overshadowed the role played by small and medium-sized enterprises (SMEs) in diversifying Gulf economies beyond the hydrocarbon industry and providing employment to more than 17 million people.
