Gulf 'needs to turn into an offshore services hub'

The GCC should transform itself into an offshore services hub to reduce the region's dependence on dwindling oil reserves and generate more jobs, according to a human resources consultancy.

The offshoring trend has propelled several countries onto a high growth path. One of them is India, whose gross domestic product (GDP) has grown at twice the global rate over the past 20 years, said Vikas Verma, Hewitt Associates' practice leader for Asia Pacific.

"GCC too can increase its resilience through a larger services contribution by transforming into a strategic offshoring hub. Global firms are increasingly embracing the concept of multi-location delivery, giving the GCC an opportunity to play the role of a strategic offshoring hub," he said at a recent Datamatix forum in Dubai.

The Gulf has an edge over other regions since it is well positioned with a young workforce, Verma said, adding that it also has a strong economy, stable politics and well developed financial and telecom infrastructure.

"Offshoring may be a potential solution for the region to reduce its reliance on its limited oil reserves, thus making the region more resilient to potential shocks and also absorbing a large portion of the unemployed domestic population," Verma said.

By establishing the Dubai Outsource Zone (DOZ), the UAE has laid the groundwork to set the region up as a services hub. Home to companies that provide technology and business process outsourcing services, the DOZ aims to be the leading outsourcing destination in the Middle East and North Africa.

The research department of the Dubai Chamber of Commerce and Industry (DCCI) noted that oil's share of the UAE's GDP has decreased.

"Over the past 10 years, the UAE has more then doubled its GDP, totalling Dh358 billion in 2005. Conversely, oil's share of GDP has been diminishing during this period. Non-oil GDP has been the main driver of the UAE economy - its share of total GDP was 73 per cent in 2005," it said.

However, Verma said the region is still facing some drawbacks as it lacks talent and skills in the services sector and the composition of its GDP remains in stark contrast to that of a developed economy.

"With oil being the predominant sector of the GCC economy, the domestic population is yet to orient itself and develop the appropriate skills required for a knowledge economy. Expatriates form over one third of GCC residents (with 80 per cent of residents in Qatar and the UAE being non-nationals)," Verma said.

He said the number of jobs created by the manufacturing sector is significantly lower in comparison to the service sector, while inadequate skills in the domestic workforce and a large expatriate population render a large local population unemployed. ( Gulf )

Iran hopes to see Iran-Afghanistan Chamber of Commerce headquarters open in Kabul
Iran hopes to see Iran-Afghanistan Chamber of Commerce headquarters open in Kabul
GM, Nikola announce reworked, smaller deal focused on supplying fuel-cell systems
GM, Nikola announce reworked, smaller deal focused on supplying fuel-cell systems
Amazon, Apple stay away from new French initiative to set principles for Big Tech
Amazon, Apple stay away from new French initiative to set principles for Big Tech
Loading Bars
Latest
Iran's first VP invites Shanghai Cooperation Organization to invest in Chabahar Port
Expert talks short-term price decrease on Azerbaijan's car market
Kazakhstan sees increase in lending to legal entities over 10M2020
Employment in Iran's Razavi Khorasan Province soars
Azerbaijan raises export to Croatia
Iranian Energy Exchange announces products to be on sale December 1
Preventive diplomacy is integral part of Turkmenistan's neutrality - president of Turkmenistan
Azerbaijan to minimize plastic consumption
Kazakhstan to set up int'l center to develop oil&gas engineering in co-op with ENI, Shell
Georgian Walnuts company aims for eco-friendly production
President of Jamaat-e-Islami Pakistan sends letter to president of Azerbaijan
Uzbekistan exporting plums mainly to Russia and Kazakhstan
Azerbaijan's Baku Metro to engage testing services through tender
Armenian PM's attempts to meet with Russian president fail
Iran can increase exports through processing industries – economist
Iran hopes to see Iran-Afghanistan Chamber of Commerce headquarters open in Kabul
GM, Nikola announce reworked, smaller deal focused on supplying fuel-cell systems
Georgia’s Innovation and Technology Agency discloses volume of startup projects
Turkmenistan's Turkmengas opens tender for purchase of chemical products
Uzbek textile products mostly imported by Russia
Uzbek currency rates for November 30
Trade turnover between Azerbaijan and Spain greatly improves
Azerbaijan increases value of year-on-year export to Kazakhstan
SecGen of Iraqi Council of Representatives sends letter to President Aliyev
Azerbaijan reports 2,981 new COVID-19 cases, 1,226 recoveries
Azerbaijani 'Barda' ferry ship repaired and put into operation
Argentine companies to cooperate with Azerbaijan’s Azexport website and Digital Shopping Hub
Uzbek Ministry of Finance forecasts increase of public debt
Swiss Investment Company to issue bonds in Uzbek national currency
Georgia purchases 10 new high flow oxygen generators from Turkey
Iran hopes for economic revival of Azerbaijan's Nagorno-Karabakh - Vice President Jahangiri
JCPOA to holding meeting in Vienna
Excise tax on import of commodity items to be abolished in Uzbekistan
Income from pine-cone exports up in Georgia
Azerbaijan reveals data on loans issued to farmers over 11M2020
YARAT Contemporary Art Space to present exhibition project "Make Island For Yourself" in Museum of Azerbaijani Painting
Amazon, Apple stay away from new French initiative to set principles for Big Tech
Georgia reveals volume of exported apples
Azerbaijan's ANAMA discloses total number of civilian casualties from mines
Development Bank of Kazakhstan eyeing support of mining, metallurgical projects
Khazar Consortium opens tender for purchase of tires in Turkmenistan
Georgia reveals top five insurance companies due to paid claims
Cemeteries destroyed, mosques used as cowsheds in Karabakh - renowned French photographer (PHOTOS)
Baku Transport Agency, ARIS LLC sign tender contract
Azerbaijani Prosecutor General's Office urges not to visit lands liberated from occupation (VIDEO)
STAR refinery's crude oil imports rise y-o-y
Azerbaijan Mortgage & Credit Guarantee Fund says will complete 2020 with profit
Russia's Rostelecom working on inter-operator cooperation with Turkmenistan
Capitalization remains strength of Georgian Basisbank
Hungarian TUNGSRAM GROUP to launch production of LED street lighting in Kazakhstan
Azerbaijani agency unveils number of munitions found since Sept.27
Iran’s Bahar Azadi gold coin starts to rise
Azerbaijan to commission road connecting Tartar and Sugovushan in coming days - ANAMA (PHOTO)
Uzbek agro-industrial agency announces tender for well construction
Carlsberg Azerbaijan and AzərŞəkər signed a memorandum of cooperation (PHOTO)
S&P Global to buy IHS Markit in deal valued at $44 billion
Azerbaijan reveals number of civilians dead, following recent Armenian aggression
Uzbekistan slightly reduces import of Turkish-made chemicals
Demining of territory for future road to liberated Shusha kicked off - ANAMA
Creation of concept for audit development in Azerbaijan for 2021-2030 nearing completion
Iran's POMC launches its first compressor
Turkey continues to raise trade turnover with Azerbaijan
Ceyhan terminal’s oil transshipment from ACG nears 194 million barrels
Baku Metro switches to modern train control systems
Visits of citizens to liberated Azerbaijani territories still dangerous - ANAMA
Malaysia ready to assist in promotion of pilgrim tourism in Uzbekistan
Uzbekistan’s 10M2020 data on plastic cards revealed
Turkmenistan's natural gas reserves increased – Eni’s review
Time deposits value surges in Kazakhstan year-on-year
Iran's total rail transit up
Turkmenistan's oil reserves remain stable for several years – Eni’s review
Iran doubles budget for defense research projects
Georgia sees increase in hazelnuts export
Iran reveals its COVID-19 data for November 30
CNG can easily be used instead of gasoline in Iran
Chabahar - first Iranian port to attract foreign operators - PMO
Georgia decreases mobilizing funds in tax revenue
Russia increases ten-month value of chemical products import from Turkey
New apartments to be added to Azerbaijan's mortgage fund base
Number of enterprises put into operation in Iran's South Khorasan Province up
Georgia sees decrease in estimated real GDP
Dynamics of Azerbaijan’s oil production since 2000
Iran's Central Bank announces number of exchanged checks
Israel-Lebanon maritime border talks postponed, officials say
Azerbaijan to assign 'stars' to hotels given level of COVID-19 pandemic-related security
Cargo, passenger traffic via Turkish Adana Airport lowers in 10M2020
Iran reveals exports of mining products
Eni’s analysis on Azerbaijan’s oil reserves
Value of Iran's trade turnover with Syria announced
Value of Turkish chemical products exported to Turkmenistan up
OPEC+ to discuss extending oil cuts or gradually raising output
World oil reserves in Eni’s estimates
Azerbaijani credit guarantee fund reveals data on issued loans by its agent banks
Total assets of Azerbaijan's Mortgage and Credit Guarantee Fund revealed
Uzbekistan to introduce monitoring system for seismic geodynamic processes at oil & gas fields
Amount of COVID-19 cases increase in Georgia
OSCE shares experience in risk management of oil and gas infrastructure with Turkmenistan
Swiss bank to invest in modernization and technical equipment of UzAuto Motors
Expenses grow on construction of enterprises in Irans' Chaharmahal and Bakhtiari Province
Kazakhstan eyes launching production of plastic tractor spares
All news