Baratta Center partners to host GCC 2035 Conference in Qatar
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Baratta Center Explores the Future of Regionalization, Global and Regional Industries, Trade, and Investment at GCC 2035 Conference

The world stands at a pivotal juncture, facing both economic promise and geopolitical complexity. While challenges persist — such as post-COVID inflation, geopolitical tensions, climate inaction, and conflicts — there are also reasons for optimism. Global GDP recovery is solid, technological innovation is accelerating, and advancements in climate technologies offer hope. Artificial intelligence presents a transformative opportunity, though regulation will be essential to mitigate risks and misuse.

Geopolitically, growing economic fragmentation and shifting power dynamics are complicating global trade. For the Gulf Cooperation Council (GCC), these trends present both challenges and opportunities. The region is advancing in economic diversification, industrialization, and is reducing reliance on hydrocarbons, positioning itself as a hub for sustainable development and technology-driven growth.

GCC 2035 featured three roundtable panels and three keynotes, with participation from GCC ministers, global investors, and senior government officials. Discussions focused on economic diversification, trade, future industries, sustainable energy, and fostering an investment-friendly ecosystem.

During the first keynote discussion, the Qatar Minister of Finance His Excellency Ali bin Ahmed Al Kuwari emphasized the GCC’s strengths, highlighting the region’s world-class infrastructure, abundant capital, and strategic leadership, which together position it well for harnessing emerging technologies like artificial intelligence (AI). Acknowledging the challenges posed by the pandemic, climate change, and regional conflicts, the minister noted the importance of strengthening partnerships within the GCC, which will be essential for overcoming obstacles in the coming decade. The GCC is focused on learning from each country’s national visions and strategies, fostering an environment that engages investors and maximizes the potential for unified regional and international growth. Beyond its borders, the GCC also aims to support broader regional stability and prosperity, underscored by the coordinated efforts of the GCC Secretariat.

The GCC Finance and Economy Ministers and the International Monetary Fund (IMF) Managing Director convened on a panel, moderated by Georgeotwn’s Walsh School of Foreign Service Professor of International Development Raj Desai, to discuss the importance of strengthening internal cooperation to address global trade shifts, regional conflicts, and the rise of nationalism, all while balancing national priorities with broader regional integration. 

Professor Desai opened the discussion by asking the ministers about the challenges in enhancing GCC cooperation amidst rising global trade shifts and geopolitical risks. Ahmed Al Kuwari responded, emphasizing the GCC’s openness in trade and the need to balance global pressures with internal integration advantages, despite national competition. He highlighted the region’s stability, fiscal discipline, and vast resources, particularly in liquified national gas and oil, as strengths, while acknowledging geopolitical and multilateral challenges that could force selective partnerships. 

Bahrain’s Minister of Economy His Excellency Shaikh Salman bin Khalifa Al Khalifa echoed this, noting the region’s economic growth, projected to reach over $5 trillion by 2050, and the shift from resource dependency to manufacturing and service sectors. He stressed the importance of reducing trade frictions in an evolving GCC economic structure. Saudi Arabia’s Minister of Finance His Excellency Mohammed Al-Jadaan pointed out the GCC’s resilience amid global economic shocks and the necessity of recognizing both unique national priorities and shared benefits. He applauded the GCC’s steps towards economic diversification beyond fossil fuels to ensure stability, noting how working collectively enhances regional gains. 

When asked about the IMF’s role, Managing Director Kristalina Georgieva acknowledged the GCC’s transformative efforts in diversification, with Bahrain leading in the growth of the non-oil economy and regional integration within GCC economies, which has grown substantially over the decades. Georgieva highlighted the IMF’s support through reforms, market integration, and multilateral advocacy, highlighting the GCC as a model for resilience and economic leadership that now serves as a model of success for the rest of the world.

During the Q&A, a question was raised about the Gulf countries’ challenges in advancing renewable energy. Al Kuwari discussed the GCC’s commitment to sustainability, balancing hydrocarbon reliance with realistic renewable goals like Qatar’s 30% solar energy target by 2030. Al-Jadaan highlighted the region’s investments in low-cost renewables and innovative energy export solutions, such as green-powered data centers. Al Khalifa added that substituting hydrocarbons with renewables benefits GCC economies, though fast-evolving technologies pose planning challenges. Georgieva urged GCC countries to unify their AI and renewable strategies for global competitiveness.

Another question raised the question of a GCC-wide visa to attract skilled labor, and Al Khalifa acknowledged ongoing efforts to improve regional workforce mobility, starting with unified tourism visas. Addressing a question from the Islamic Development Bank on de-globalization, Al-Jadaan emphasized the GCC’s commitment to multilateralism, highlighting growth areas like tourism and finance as pillars for regional stability. On private sector development, Al Khalifa stressed the importance of supportive regulations, infrastructure, and strategic projects, noting the government’s role as a facilitator. Regarding sports, he highlighted events like Formula 1 as drivers for infrastructure, local industry, and global engagement, showcasing the region’s evolving appeal.

Conference attendees had the opportunity to hear from Georgetown University in Qatar’s Dean Safwan Masri, who discussed how the GCC’s transformation since 1981 reflects its evolution from a region defined by geopolitical positioning and natural resources into a global hub for innovation, culture, and progress. Qatar’s commitment to advancement, along with Georgetown University in Qatar, plays a pivotal role in driving discussions and solutions for complex issues with both local and global impact. 

During the second fireside chat, His Excellency Hassan Al-Thawadi spoke about the profound impact of hosting the FIFA World Cup on Qatar’s Vision 2030 in a conversation moderated by Anil Khurana, executive director of the Baratta Center for Global Business at Georgetown’s McDonough School of Business, and Gerd Nonneman, professor of international relations and Gulf studies at Georgetown’s School of Foreign Service in Qatar. According to Al-Thawadi, the FIFA World Cup served as a catalyst for development across tourism, infrastructure, economic diversification, and social progress, accelerating key initiatives in each area. The World Cup endowed Qatar with top-tier infrastructure and operational capabilities, solidifying its reputation as a hub for hosting complex, large-scale international events. The tournament not only boosted tourism and other sectors – leading to a notable increase in economic activity – but also aligned with Qatar’s broader economic goals. 

Building on this momentum, Al-Thawadi said that Qatar aims to leverage its expertise and infrastructure from the World Cup to attract and organize more international events that support long-term national and regional strategies. The GCC is also investing in content creation to develop a unique cultural brand that will resonate globally, positioning the region as a player in the entertainment industry and creating opportunities for sharing regional stories with the world.

During the second panel discussion, the GCC convened leaders to discuss the future and models of collaboration, with a key focus on decarbonization, developing knowledge economies, and people development. The region’s energy-rich environment lends itself well to exporting energy-intensive services, such as data and computing power, rather than just raw energy, maximizing economic efficiency and environmental impact. 

The panel discussed the role of emerging technologies such as AI, which are driven largely by the UAE’s strategies that are paving the way for greater technology integration across the region. New growth areas in health tech, like synthetic biology and DNA synthesis, are being explored, emphasizing the importance of self-sufficiency to mitigate potential future pandemics. 

According to the panelists, governments are shifting from public-led to private-led growth by investing in skills development, entrepreneurship, and attracting international talent, supported by visa reforms to welcome top talent worldwide. Health-tech investments, such as digital stethoscopes, aim to improve healthcare access in underserved areas ike the Europe, Middle East, and Africa (EMEA) region, positioning the GCC as a center for healthcare innovation and tourism. The speakers also discussed efforts to adapt traditional funding models to better support innovative industries, with a push for more accessible capital to nurture diverse startups. While GCC nations are enhancing local talent pools, particularly with policies like Saudi Arabia’s initiatives to increase women’s workforce participation, the panelists emphasized that attracting global talent remains crucial to sustaining the region’s growth. 

The third panel discussion highlighted the promising opportunities for investors in the GCC region and discussed the challenges that will require coordinated action to unlock its full potential. According to the panelists, one of the primary concerns is market size; while the GCC has a population of about 52 million with significant purchasing power, it is often viewed as too small when compared to markets like China or India. To counter this, the experts shared that regional integration is essential, enabling companies to expand more easily across GCC countries and into neighboring markets like Egypt and Pakistan. Additionally, the GCC’s venture capital and private equity landscape remains underdeveloped, with far fewer active investors compared to other regions. 

The panelists also shared that exit strategies, including more avenues for IPOs and mergers, are vital to attracting global investment interest. While some progress has been made, more flexible and streamlined exit options are necessary to enhance the appeal of the GCC as an investment destination. They said government support – in the form of investment incentives, clear regulatory frameworks, and talent retention policies – will play a pivotal role in creating a conducive environment for both domestic and foreign investors. 

Ultimately, the panelists underscored that by fostering collaboration between governments, private sector players, and international investors, the GCC can build a sustainable and competitive investment ecosystem that drives economic growth and positions the region as a significant global player by 2035.

The final keynote discussion of the conference was held between Tarik Yousef, senior fellow and director of the Middle East Council on Global Affairs, and Khurana, to discuss diversification 2.0 for the GCC and shifts from infrastructure to a knowledge-driven economy, focusing on high-value, export-oriented sectors like advanced manufacturing, renewable energy, and digital services to reduce oil dependency. Diversification 2.0 emphasizes private sector-led growth, with governments supporting targeted incentives and industrial policies in areas like green tech and AI. According to Yousef and Khurana, regional integration is essential for achieving scale and competitiveness, while sustainability forms a core focus, aligning economic development with global environmental goals. Additionally, investing in workforce skills and talent development will ensure a robust foundation for long-term, resilient growth in these new industries.

At the end of the conference, Khurana reiterated how the current situation and trends – geopolitics, energy transition, global industries transformation, and GCC demographics – create a window of opportunity for the GCC to “overtake at the curve”. Industries and sectors such as manufacturing, green hydrogen and renewables, data centers and AI, media, fintech, healthcare, education, and others are all possible – with an emphasis on being globally competitive, and accompanied by the appropriate investments in skills and entrepreneurial activities in these sectors. 

However, Khurana shared that this will only be possible if the GCC countries are able to create a “single market” and collaborate (even if there is some competition). The GCC Secretariat and the GCC countries’ leaders, working with the IMF alongside Georgetown University’s continued support, can potentially solve the constraints for the GCC customs union, help emphasize the role of the private sector and entrepreneurs, and create a degree of alignment across the national visions and plans to enable regional economic diversification and development.

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