Getting Ready for the Post-Oil Age: The Entrepreneurship as the Rising Star of Development Policies in the Gulf States

Abstract

Gulf Cooperation Council countries have been offering opportunities to attract global investors for a while. Yet, the strong tension between the existing government structures and the democratic elements that are needed for investments to flourish creates a complicated economic environment. Besides, the external dynamics sourced from international relations in the region add a new dimension to the problem. For many economies of the same characteristics, governmental supports for entrepreneurial activities rise as a natural solution for many problems. Is it the case for the Gulf States, too? This study, first, draws a framework in order to explore the extent of the new entrepreneur-led growth policies in the region and relates the possible policies to the existing economic problems. Then, three markets, the Kuwaiti labor market which is a good representative of other Gulf States' labor markets, renewable energy markets and biotechnology markets which have increasing roles in new industrial policies, are studied to examine the challenges and the opportunities created by these government policies. The study reveals numerous opportunities offered to entrepreneurs and investors, however further requirements to improve the conditions necessary for entrepreneur-led growth are advised as policy purposes.

The Middle East Post‐Petroleum: Averting the Storm

“…56 It is worth noting that the large investments aimed at developing technological industries will still fall short of addressing some of these issues, including but not limited to an unprepared workforce, the lack of an indigenous entrepreneurial culture and limited local participation in a private sector, not to mention the lack of effective R&D networks, an inability to attract and retain competent researchers, and governance constraints. 57 A knowledge-based economy in the region faces perhaps its biggest obstacle in the existing traditional administrative infrastructure. The systems in place cannot pave the way for a dynamic knowledgebased economy.…”