14/02/2016 08:31 AST
Investment banker Rashad Janahi has said that Bahrain is well-positioned to transition to the fourth industrial revolution.
Mr Janahi who was one of the select Bahraini participants at the World Economic Forum (WEF) annual meeting 2016 in Davos last month, told the GDN that it was the theme of the summit this year as technology shifts from a supporting role to the spotlight.
The future is one of exponentially disruptive change as assumptions about growth models are overturned, the international balance of power continues to fray, and scientific and technological breakthroughs are poised to transform economies and societies, he said.
“I heard Economic Development Board chief executive Khalid Al Rumaihi tell a panel discussion during the forum that the future of the world is in technology-enabled services which suits Bahrain’s economy.
“I agree with him that we have skilled human capital which is ready, willing and able to work in the private sector,” he added.
While plummeting oil prices had made reform imperative for Bahrain and the GCC region, Mr Janahi said he also thought the opportunity was a god-send which
The situation is forcing the correct pricing of resources and making the private sector more efficient, he said.
“As Mr Al Rumaihi told the panel in Davos the private sector’s main complaint is that it wants ease of doing business and the government needs to retract from many businesses.”
If it (the government) manages the transition well, it will get the right behaviour, said Mr Janahi.
A key area of interest for him was the future of the global financial system – a hot topic during WEF 2016.
According to the Bahraini banker, the global challenge is to facilitate digital transactions across the value chain.
It is clear that the regulatory framework must align investor, retailer and consumer incentives to adopt and promote digital financial services.
Mr Janahi said youth unemployment in the Mena region was north of 30 per cent as per International Monetary Fund data.
Emerging markets also account for $2 trillion of the global SME funding gap.
On the latter, a recent survey of 99 countries indicates that SMEs employing between five and 250 staffers account for 67pc of total permanent, full-time employment.
In China, SMEs dominate the local economy, accounting for 99pc of all enterprises, 70pc of employment, 60pc of GDP and 50pc of tax collections – however, these firms only account for approximately 20pc of bank lending, he said quoting a report issued by the WEF.
“There can be no doubt that enhancing financial access of small businesses would substantially bolster economic output and employment,” he said.
Mr Janahi was one of more than 2,500 top business leaders, international political leaders, selected intellectuals and journalists who came together for discussions at the forum.
Gulf Daily News
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