The Middle East economy has grown rapidly over the last few years. However, a new report from the World Bank Group’s latest Quarterly Economic Brief shows that real GDP growth in the region’s largest countries has started to decline. The World Bank has said that the country leaders should start making reforms to boost growth.
However, free market analysts believe that the real problem is that wealthy Middle Eastern citizens need to take more steps to grow their businesses. They have also been overly reliant on the oil industry, which may not be a sustainable revenue source in the years to come. A number of the region’s business leaders have started growing other businesses, which should boost economic growth in the near future.
Middle Eastern Aristocracy Focuses on Business Growth
A new study from Campden Wealth Research and Standard Chartered Private Bank found that Middle Eastern leaders have become less complacent about managing their businesses. They are becoming more active in the day-to-day operations of their businesses and are brainstorming new ways to grow such as this video shows.
The study shows that 85% of the region’s business leaders are heavily involved in the management of their businesses. That figure was much lower in previous years. A number of wealthy business owners felt that they weren’t reaching their full potential and decided to increase efforts to grow.
The oil industry has played a key role in shaping the Middle Eastern economy over the past century. However, the oil boom has begun to taper out, which has forced entrepreneurs to consider expanding into other verticals.
Motivation for Change
Profit maximization is the primary motive for business owners in most Western countries. Wealthy Middle Eastern businesses have different motivations. They tend to see higher profits as a byproduct of running a successful business, but don’t feel it should be their primary goal. Most wealthy business owners want to make a meaningful change in their countries.
Michael Benz, one of the executives with Standard Chartered Private Bank, said that there are many opportunities in the region. Benz said that wealth is growing faster in the Middle East than any other region in the world. He said that entrepreneurship will be instrumental in making this change.
Benz and many other experts stated that economic growth in the Middle East will benefit the rest of the world. Middle Eastern businesses have created numerous jobs in their own countries, as well as Asia and Africa. Many experts are confident that Middle Eastern entrepreneurs will help boost global economic growth in the years to come.
