ABU DHABI, 26th February, 2025 (WAM) -- Dr. Khaled Hanafy, Secretary-General of the Union of Arab Chamber, said that the Arab private sector contributes approximately 75 percent of the region’s Gross Domestic Product (GDP), playing a crucial role not only in production and employment but also in enhancing investment and exports.
Speaking to the Emirates News Agency (WAM) on the sidelines of Investopia 2025 in Abu Dhabi, Hanafy highlighted that the Union of Arab Chambers operates through an extensive network, comprising chambers of commerce in 22 Arab countries and 16 joint Arab-foreign chambers worldwide. This network aims to strengthen Arab economic integration and connect local markets with global economies.
He noted that these efforts have successfully attracted numerous companies and investors to the Arab region, shifting the traditional perception of Arab markets from being merely consumer destinations to strategic partners capable of adding value through investments in local resources, particularly human capital.
Hanafy identified the main challenge facing Arab economies as the adoption of modern technologies and the transition to a digital economy powered by artificial intelligence. He explained that this transformation is not limited to upgrading production processes, logistics, and financial services but also extends to improving supply chains and enhancing overall economic efficiency.
He emphasised that Arab youth are the driving force behind this digital transformation, adding, “A country’s success in adopting modern technologies depends on the private sector’s ability to keep pace with these changes and integrate as many individuals as possible into this transition.”
Hanafy further stated that digital transformation does not necessarily require massive financial resources but rather knowledge, noting that the Arab world benefits from having a predominantly young population, which should be leveraged for future growth.
Regarding the future of the private sector in the Arab region, he stressed that the success of any economy is fundamentally tied to empowering the private sector and granting it the freedom to operate. "The private sector is responsible for production, exports, investment, and job creation. If governments succeed in enabling it, their economies will thrive," he added.
On privatisation, Hanafy explained that the issue is not merely about transferring ownership of public institutions to the private sector but about creating a business-friendly environment that allows it to operate efficiently without obstacles. This, he said, requires flexible economic policies that enhance competitiveness and encourage innovation and growth.
Hanafy also praised the UAE’s experience in enhancing digital readiness, describing it as a global model in digital transformation and economic innovation. He noted that many countries, including European nations, are looking to benefit from the UAE’s expertise in this field.
"The UAE is not just a regional model but a global reference. It has overcome numerous challenges and achieved remarkable success in digital economy, entrepreneurship, and artificial intelligence. Arab countries can benefit from the UAE’s experience—not necessarily by replicating its model but by developing solutions that align with their unique economic and social conditions," he concluded.