GRM 2010 GRM 2011

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The Role of Public - Private Partnerships (PPPs) and Economic Diversification in achieving the sustainable development in GCC Countries
Paper Proposal Text :

“ The Role of Public - Private Partnerships (PPPs) and Economic Diversification in achieving the sustainable development in GCC Countries “
The past decade has been a major economic transformation period for the members of the GCC Countries. Diversifying Economies away from oil sector was one of the major goals of economic policies. Non renewable nature of oil resource is a major factor that needs attention and is the prime reason of discussions for diversification of economies. This volatility of oil resources coupled with a rising pattern in demographic growth has instilled the importance of this topic amongst economic policies in the recent years. GDP growth in the GCC is expected to exceed other growth markets, to the fact that the GCC authorities has massive investments in physical infrastructure like transport and power as well as programs that have been designed to improve employment opportunities, housing, health care and education across the GCC.

Investors all over the world strive to their investments. Strong economies tend to be the most desirable place for investments of all types. As one indicator of stable economies is the economic diversification, this study analyses and highlights improvements in economies of GCC as they strive to move beyond oil and petroleum sectors; grabbing attention of acute investors and global businesses. Economic diversification and attracting private investment through public-private partnership (PPPs) has remained the focus of the GCC governments in the wake of revenue fall as a result of oil prices. Public-private partnership(PPPs) have become a popular tool for funding new infrastructure projects around the world and played a further role in promoting economic diversification and foreign direct investment. States typically tend to turn to them when facing budget deficits, the need to protect against project delays and cost overruns, a desire to diversity the economy by stimulating private sector investment, and to maintain the continuity of projects when government funds are constrained.

The study specifies the economic sectors which are targets for the public – private partnerships (PPPs) and diversification efforts .The development of an active PPPs programme offers the government the prospect of opening up long term foreign direct investment flows that can help achieve the Governments goals of continuing to develop and modernize its infrastructure , create jobs, and expand and diversify its economy.

One of the key requirements for economic diversification is innovation, which is defined as the ability to achieve change that creates a new dimension of performance - at least new to the national economy, if not new to the wider world. This does not just mean ‘invention’ or ‘R&D’, but rather the capacity to absorb, implement and exploit innovation effectively within industrial sectors in order to build competitive strength and generate added value for the economy. Governments in the region have launched and implemented various initiatives to foster innovation. However, the innovation output in the region has generally fallen short of expectations.
GCC countries should explore the reasons for the major gaps that exist today in the region’s innovation capacity, using countries such as UAE, Saudi, Bahrain, Qatar, Kuwait, Egypt and Jordan as examples. We then go on to consider the key actions required from policy makers as well as major companies in the region for developing a comprehensive innovation system to drive economic diversification.

Public-private partnership(PPPs) and diversification are the key elements for supporting GCC countries to achieve the major initiatives (visions) launched during this period which were (Oman 2020),( Bahrain's Economic vision 2030), (Qatar's National Vision 2030),(Kuwait Vision 2035),( UAE's Vision 2021),and (Saudi Arabia Vision 2030). Employing quantitative and qualitative analysis, an empirical and comparative approaches. the study is Investigating the involvement of the Public-private partnership (PPPs) in financing and delivering public services which is inevitable for the future economic development of the GCC countries and to diagnosed a number of challenges face the GCC countries relating to public – private partnerships (PPPs) for infrastructure delivery in the GCC countries. The main objectives of the study are exploring the contributions of Public-private partnership (PPPs), Economic diversifications, and innovation in achieving the major initiatives (Visions) in GCC countries.