Panel, Conference Presentation
Fostering Global Connectivity and Economic Growth | Global Conference 2024
Milken InstituteDiane Brady, Manar Al Moneef, Mohammed Al Sowaidi, Sarah Al Suhaimi, Khalfan Belhoul, Dina Powell McCormick
- GCC economies are projected to sustain significant growth and GDP progress over the coming years, maintaining stability despite persistent global and regional geopolitical tensions, with non-oil GDP share expected to increase and the region remaining a "bright spot" for investment.
- Investment activity is anticipated to continue rising, building on a trend where M&A transactions quadrupled between 2018 and 2023, supported by strong foreign capital inflows, dollar peg stability, and an increasing appetite for long-term strategic investment over short-term three-to-five-year returns.
- Specific infrastructure and energy initiatives are on track for completion or launch with defined timelines: the Sindala project is set to open by the end of the current year, green hydrogen projects at NEOM are expected to be announced and functional by the end of 2025, and Trujillo will host the Asian Winter Games by December 2029.
- The development of NEOM, including The Line's modular expansion of its first three modules currently underway, is expected to redefine livability and conservation through new technologies, while broader GCC integration will increase due to shared languages, systems, and infrastructure.
- Regulatory frameworks are predicted to evolve toward agility and seamlessness for founders, with continuous introduction of innovation-friendly regulations and a priority on growing the debt market in the Saudi capital market alongside existing equity and derivatives expansions.
- Demographic and social factors, including a population where 80% is under 35, high literacy rates, and a focus on human capital, are expected to drive prosperity, women's equality, and youth-led development, countering geopolitical resistance and fostering inclusivity.
- Regional stability and future opportunities are linked to the continued implementation of Vision 2030, potential normalization of relations including Saudi-Israel ties under the Abraham Accords, and a global pivot toward unity in resolving conflicts and startup regulations.
- Risks involving geopolitical conflicts are acknowledged but viewed as manageable; the region is expected to prevail over external resistance through resilient leadership, while maintaining an advantage through central location and a focus on human development to attract global talent and populations facing conflict.