A study by Strategy & Middle East, part of PWC network’s recent study, revealed that localising high tech industries in the MENA region will build resilience and economic growth and could be worth $125 billion in revenues by 2025.
The regional manufacturing of three major product areas advanced materials, advanced components, and advanced products is at the centre of these high tech industries.
As per the study, Middle East countries should seek to localise that value as much as possible, instead of importing it.
Alessandro Borgogna, partner with Strategy& Middle East, stated, “The COVID-19 pandemic threw into sharp relief the susceptibility to supply chain disruptions and questioned the region’s resilience. It was difficult or impossible for companies to secure all the essential components on which they now heavily depend. Localising tech and digital is therefore vital as it secures the supply of parts and products that are integral to economic and business activity.”
These ecosystems include: Financial incentives; Global supply chains; Regulatory and policy support; Reliable and cost-effective utilities infrastructure; Talent; and Enabling business and trade policies.
In February 2022 during the LEAP tech event, Saudi Arabia announced it would be investing $6.4bn in the digital technologies of the future and the tech start-ups that will harness them. KSA is touted to spend $24.7 billion on technology by 2025
While sovereign funds have teamed up with investment firm in Abu Dhabi to invest $20 billion
Abu Dhabi-based artificial intelligence firm G42, backed by Mubadala Fund set up a $10 billion fund with a focus on technology investments in emerging markets.
Dubai has launched several initiatives including its metaverse strategy, blockchain, AI, and others.
