Sustainable economic diversification is the key

As the market volatility and economic uncertainty persists, the UAE Cabinet held a retreat on post-oil phase. The meeting discussed ways to diversify the country’s economy while ensuring sustainability. Sustainable economic diversification is vital for economic prosperity.
Any development that is not sustainable will not bring about long-term growth. Resources and expertise will have to be used in an innovative manner. Innovation will drive the economy as the diversification takes place.
Post-oil strategy has to be such that it not only strengthens the current economic sectors, but also gives momentum to new ones. It is important that these new sectors play a role in shaping the economic course of the nation.
During the retreat, His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, said, “We strive to make the UAE a model of a nation succeeded to transform its economy from depending on natural resources to depend on skills and its human capital and they are our bet for a prosperous future. The post-oil transformation is a turning point in our history as UAE nationals. The success in making this transformation is our only option and it will be realized.”
Tapping alternative sources of energy is crucial to make the post-oil transformation of the economy happen. Investment in clean and renewable energies will go a long way in ensuring a sustainable economic future. The small and medium enterprises (SMEs) have to be roped in to give a boost to renewables. It will also create jobs and help in economic reliability. The SMEs have to given more acceleration to grow and flourish. This sector will have to move away from the trading-dominated model and focus on new ventures.
With sustainable development, the UAE will be able to mitigate many environmental fallouts and be able to tackle climate change impacts too.
Economic diversification will need a futuristic planning. The UAE has already taken strides in this path. Around two-third per cent of the UAE’s gross domestic product is being derived from non-oil sources. Tourism is a sector that has raked in enormous revenues. Real estate, aviation and professional services sector are also being given the right attention.
Harnessing human skills and capital will ensure that the economy is knowledge-based and globally competitive. The UAE has to utilize innovative solutions and creative ideas. These will form the foundation of the country’s sustainable economic development.
As the UAE’s economy diversifies more, it will show to the world that it has the strength to keep pace with the economic changes. And that it can carve a path of prosperity even in the face of the biggest challenges.