Abu Dhabi: Dr. Khaled Hanafy, Secretary-General of the Union of Arab Chambers, has revealed that the private sector is a significant contributor to the Arab region's economy, accounting for approximately 75% of its Gross Domestic Product (GDP). The private sector plays a pivotal role in production, employment, investment, and exports.
According to Emirates News Agency, Dr. Hanafy shared these insights during Investopia 2025 in Abu Dhabi. He emphasized the Union's extensive network, which includes chambers of commerce in 22 Arab nations and 16 joint Arab-foreign chambers globally. This network aims to enhance Arab economic integration and connect local markets with the global economy.
The efforts of the Union of Arab Chambers have successfully attracted numerous companies and investors to the Arab region. This has transformed the perception of Arab markets from mere consumer destinations to strategic partners capable of adding value through local resource investments, particularly in human capital.
Dr. Hanafy identified the adoption of modern technologies and the shift to a digital economy powered by artificial intelligence as the main challenges facing Arab economies. This transformation extends beyond upgrading production processes and financial services to improving supply chains and economic efficiency.
He highlighted that Arab youth are pivotal in driving digital transformation. A country's success in adopting modern technologies depends on the private sector's ability to adapt to these changes and involve as many individuals as possible in this transition.
Dr. Hanafy also noted that digital transformation relies more on knowledge than financial resources. The Arab world, with its predominantly young population, should leverage this demographic for future growth.
Regarding the future of the private sector in the Arab region, Dr. Hanafy stressed the importance of empowering the private sector and granting it operational freedom. He stated that the private sector is crucial for production, exports, investment, and job creation, and its empowerment is key to economic prosperity.
Dr. Hanafy explained that privatisation involves creating a business-friendly environment for the private sector to operate efficiently, which requires flexible economic policies to enhance competitiveness and foster innovation.
He praised the UAE's digital readiness, describing it as a global model for digital transformation and economic innovation. The UAE's success in the digital economy and artificial intelligence serves as a reference point for other countries, including those in Europe.
Dr. Hanafy concluded by noting that Arab countries can benefit from the UAE's experience by developing solutions that suit their unique economic and social conditions.