MIDDLE EAST & NORTH AFRICA
CONNECTING EAST, SOUTH AND WESt
The Middle East and North African region (MENA) is undergoing systematic changes, due to economic diversification, social-human factors and changing regional and global alliances shifts. After being known for its rentier state hydrocarbon based economies, linked to a bipolar world, the region now is undergoing a shift from oil-gas based economic structures to a more diversified economy, investing in local content and SMEs, with a focus on renewables, infrastructure, high-tech manufacturing and sustainability. The latter changes, in combination with growing power and alliances shifts, causes instability and change, confronting international companies, investors and institutional investors with a necessity to mitigate their risks and take charge of new opportunities. Internal and external instability, shifting coalitions, a move to look East, present challenges but also opportunities. A wide range of risks has popped up to be assessed, such as political, power, energy and economic, in which VEROCY can be the instrument and the advisor for parties in and outside the region to support ongoing operations and future profits. Arab governments are confronted by high youth unemployment, threats to hydrocarbon based revenues, and regional and local instability. Change is needed, presenting opportunities in all economic and social sectors.
Main power brokers in the region, such as Saudi Arabia, Egypt, UAE, are currently not only reassessing their own position within the global power structures, but also are increasingly opening up to global markets. Localisation strategies are being combined with 100 percent foreign ownership in a move to attract hard needed capital, knowledge and support, to boost the respective economies to a sustainable 21s Century level. Geopolitical and financial risks, supported by shifting alliances, need however to be addressed and taken into account when setting up shop or changing business strategies.