Government and Public Services

Political tensions and geopolitical instability has pushed investment and increased defense spending across the Middle East. With global spending on defense on the rise, the key trends in the Middle East are characteristic of governments worldwide.

Localization in the new frontiers of Defense

• Cyber-defense is a growing priority – extending beyond earth to space! Rising economic costs, the significant impact of supply chain disruptions to entire nations, as well as the threat posed by ransom-ware to national security will continue to prioritize cyber-defense for Middle East markets further emphasizing the importance of the localization agenda for military industries.                                                 

Multi-domain framework for defense and horizon scanning

• One of the key outcomes of the pandemic was that it highlighted the role that defense can play in supporting civil power. This trend will likely continue, with defense policies and teams responding more aptly to international events and forming horizon scanning functions.                                                  

Spending efficiency and commercialisation

• The Defence sector continues to dominate fiscal spending resulting in continued emphasis on spend optimisation, rationalisation and prioritisation across all branches of the armed forces. Most recently, there has been a push towards bundling and commercialising non-core military assets as a revenue generating mechanism.

Characterised for the most part by increasing inflation and commodity prices, pre-Covid priorities of diversification, fiscal balance and employment will continue to dominate Middle East agendas.  

Diversification to non-oil, knowledge-based and innovative economies

• National governments in the region aim at diversifying economies and driving talent and innovation agendas, with an increasing emphasis on transition finance in order to fulfil net-zero commitments. Naturally, as a consequence, the imperative for Middle East diversification to non-oil remains to be the focus of policy, strategy and programmes agendas.

Promoting Micro, Small & Medium Enterprises

• Middle East governments are tapping into the potential of their young, dynamic population by encouraging entrepreneurship and promoting MSMEs. With the increasing need for and potential of this sector in achieving multiple objectives, governments prioritise ease and cost of doing business, access to finance, talent and markets for this critical target group.

Creating a conducive environment for Trade and Investments

• A promising emerging market, over the past years, the Middle East has proven to be a strong contender for foreign and local investors alike. Over the past years, governments have minimised non-commercial risk and provided incentives to attract and retain investments and promote exports from the region.

With ambitious government transformation agendas driving change in the region, and just under 30% of the population between the ages of 15-29; education and lifelong learning is a key priority for the Middle East. The focus on accessibility, inclusivity and relevance of education curricula and skilling programmes has resulted in:

An evolution in how we teach and learn

• Across the region, innovative partnerships are being formed between educators and industry, digital technologies, as well as government: to optimise access to education, accommodate different learning styles, and cater to special education needs. Increasingly, a more holistic approach to managing the multiple challenges of scale, quality and linkages to the labour market has emerged and will continue to drive education in the region.

Students empowered by choice

• Student mobility is on the rise, and with the increasing choices provided by top education and skilling providers, students can make informed choices. This is likely to increase as regulators update standards to allow for more flexible degree programmes and interactive/ blended learning becomes more common – allowing for customised, more rewarding learning experiences.

Lifelong learning for the future

• With the rise in nano-degrees and the skilling of professionals to adapt to an evolving job market, education systems are developing new programmes that adapt to the needs of a changing student cohort.

As diverse as the Middle East is, there are a number of pressing issues that drive the policy agendas of governments, international development organisations and community groups alike

A young Middle East: Asset or Liability? 

• With one of the largest youth populations in the world, the Middle East is also the world’s largest unemployment hotspot. Productively driving the energy, creating 33 million new jobs and supporting social inclusion is key to sustaining livelihoods and importantly, closing off one of the main sources of extremism/terrorism.

Hotbed for Climate Change 

• Healthy ecosystems are the hallmarks of the wellbeing of communities and societies. The Middle East is one of the most vulnerable regions in the world to climate change - a pressing concern given the fragility of the region’s water and food systems.

In & Out: Displacement and Brain Drain

• Geopolitical unrest and limited social mobility have increased displacement in the Middle East and added pressure on governments. According to the United Nations High Commission for Refugees, 16.1 million (19%) of the 84 million displaced persons in 2021 reside in the Middle East North Africa region. On the other side, survey estimates drawn over the past decade suggest that brain drain is costing Middle Eastern governments between USD1.5 - 2 million annually.

The stakes are high for governments worldwide. Government readiness, and its resilience and agility has direct bearing on public confidence and trust, socio-economic development, and quality of life for citizens. 

Re-imagining safety and security

• The pandemic has shed light on the importance of proactive engagement and prevention in the area of safety and security. This has pushed for an evolution from law enforcement and execution to root-cause analysis and community engagement. 

Collaborative Operational Models

• In tandem with the changes taking place across all other sectors of government, the safety and security sector is adapting its operating model to engage communities, build partnerships with the business community, and capitalise on the outreach, networks and knowledge of non-governmental organisations.

A multi-disciplinary, digitally savvy cadre of professionals

• Professionalising the safety and security sector is a key priority for Middle Eastern governments. In addition to skilling and standardising the sector, there is a growing trend to further diversify the backgrounds and qualifications of safety and security personnel.

After the hit the Middle East tourism sector took during the pandemic – resulting in the loss of over 1.2 million tourism related jobs, the tourism sector is rebounding – with a strong and clear vision of the way ahead.

Innovative partnerships for pragmatic goals

• Tourism policy makers continuously balance a multitude of priorities, ranging from sustainability goals, global and regional stability, as well as economic capability against their tourism vision and goals. Middle East governments are designing innovative policies and collaborative partnerships to develop sustainable tourism hubs.

New, niche destinations & experiences

• As governments capture the need to “reboot” after the complete decline of travel, there is a growing market for new, niche destinations and experiences. This ranges from self-discovery, adventure tourism – through to exclusive luxury travel destinations and experiences. 

Digitally enhanced experiences 

• Capitalising on one of the key learnings from the pandemic, digital technology will continue to be leveraged to ensure a unique customer experience for safety, wellbeing and sustainability.

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People in the Middle East share a common passion for sports. It plays a key role in building local communities, encouraging a growing generation of health-conscious citizens and strengthening the region’s reputation on the global stage. The region is home to several prestigious sporting events, and building a robust sports sector is part of national transformation agendas.

Growing confidence and positive outlook in sports events and investments

Increased optimism and confidence in the Middle East sports sector has attracted investments from Middle East sovereign wealth funds and government-backed investment groups. The positive outlook is well-founded amid an increasingly packed calendar of global sporting events in the region, with several high-profile athletes choosing the Middle East as a destination to continue their legacy.

New investment opportunities in women’s sports

With female athletes in the Middle East overcoming cultural barriers to excel in sports, there are now huge opportunities for private sector investment in this area. Women’s sporting events are now an integral part of national health and wellness transformation agendas as governments get keen to improve health and fitness levels in women.

Scaling esports offerings

The Middle East has established itself as a global Esports hub with huge commercial potential for technology and gaming companies. Young, globally connected digital natives present an untapped potential for companies to invest and reach out to a new fanbase as governments scale esports offerings across the region.

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