Service industry to attract investment in post-oil scenario

Dubai / Emirates Business

According to Vasiliki Kostami, Assistant Professor of Management Science and Operations at London Business School, the UAE’s recent government restructuring initiative has come at the right time and will provide a boost to the national economy. One of the things the restructuring clearly aims at, she observes, is bringing about an improvement in the delivery of services.
“Given the current situation, with the oil and gas market expecting a challenging time, services seem to be an ideal target for investments. The overall service industry seems to exhibit a reliable performance, whereas the growth in other industries appears to be less apparent,” says Dr Kostami.
According to Dr Kostami, UAE is recovering following the decline in oil prices. What’s needed now, is a consistent follow-up for continued progress. This, she says, will serve to benefit the country.

“The aftermath of the overhaul includes several positive elements for the service sector. First, several government services will gradually get outsourced privately creating new job opportunities, space for innovation, and efficient operations.

“The service operations should employ innovation to improve and further develop skills. This will attract demand. Innovation is necessary, and encouragement of new ideas is essential.”

Dr Kostami links the Government’s role in improving and sustaining state welfare through its new minister of state for happiness, to the entertainment and health sectors. “The new theme parks that are due to open in 2016, if marketed and priced smartly, will attract new types of visitors, families with kids, and will boost the demand of hotels, restaurants (mostly casual dining) and airlines that could be otherwise hit by the reduced business travelling, will be heavily hit by the oil market, due to reduced travel” she says. “Improving the wellbeing of the population will increase awareness towards a healthier lifestyle and lead to an improvement in resource allocation.”