Cairo – Mubasher: The MENA region may generate more than $637 billion and create 12.4 million jobs across the region by 2030 through shifting toward sustainable business strategies, according to the Business and Sustainable Development Commission's (BSDC) report on Monday entitled “Better Business, Better World MENA”.
“As countries in the Middle East and North Africa rise up to open new opportunities for women, welcome refugees and diversify their economies, there remains a long road for the region as a whole to become inclusive and sustainable,” chairman of the BSDC Mark Malloch-Brown said.
“Better Business, Better World MENA shows there is a compelling economic incentive for business and government to accelerate, embracing sustainable solutions and rolling out innovative strategies to ensure that the region exploits fully its potential,” he added.
Firms in the MENA region that follow strategies aligned with the global goal are capable of creating economic opportunities across 60 hot spots worth more than $12 trillion and provide up to 380 million jobs by 2030.
The report smashes the estimated $637 billion of economic value for the region across four key systems, including energy and materials, cities, health and well-being, and food and agriculture.
The BSDC has identified 20 of the largest opportunities across the four abovementioned systems, which account for nearly 75% of this prize.
“The top five include: improved energy efficiency in buildings (US$52 billion); affordable housing (US$50 billion); circular models in the automotive industry (US$37 billion); resource recovery (US$33 billion); and risk pooling in healthcare (US$31 billion),” the report highlighted.
“The sustainable development goals (SDGs) offer a coherent framework to effectively address fundamental societal challenges. […] also serve as a guideline for targeting where capital can be allocated most productively for investors and corporate leaders,” founder and CEO of the Abraaj Group and commissioner of the BSDC Arif Naqvi said.
“The goals are relevant to the MENA where we see a young dynamic population, motivated to seize opportunities and make positive contributions to the wider society. This is the time for CEOs and investors within the region to step up, take the lead and partner together for inclusive growth,” he continued.
A number of oil-exporting countries in the MENA region, including Saudi Arabia, Bahrain, Oman, Qatar and the UAE, have launched plans to diversify their economies, as oil prices drop and the primacy of fossil fuels wane, the report indicated.
Moreover, oil-importing economies in the region are also achieving goals in an effort to fulfill social progress and protect the environment.
“Better Business, Better World MENA puts a price tag on the economic opportunities if the entire region pursues a more inclusive, sustainable pathway, as outlined by the Global Goals,” the report said.
The total economic “prize” could be far larger if other sectors were factored into the analysis, including information and communication technology, in addition to accomplishing women’s equality, the report added, noting that pricing of externalities could boost the total prize value by 40%.
At least 12.4 million jobs could be created through “SDG-aligned business models” in the MENA region, the report mentioned, adding that developments in urban construction, mobility, and infrastructure will generate nearly 6 million jobs.
“We believe in being a positive force by developing communities with balanced living environments, while building affordable, eco-friendly, and innovative solutions,” CEO of Red Sea Housing Services William Ali Mills said.
An estimated additional of $2.4 trillion will be needed annually to achieve the SDGs across the world until 2030, in addition $1.6 trillion needed globally for infrastructure financing.
Blended financing can fill the funding gap and help bring in private investors at lower risk, the report explained, noting that such investment could boost growth by as much as an estimated 3.7% among the region’s oil producers and 1.5% for oil importers.
The MENA region still needs $106 billion a year until 2020 to cover the infrastructure gap in spite of high levels of investment.
“Business can only realise the Global Goals opportunity by paying its fair share of taxes, creating good jobs with fair wages and conditions, and addressing rising unemployment, particularly among young people and women,” the BSDC underlined.
“Businesses in the region can also provide solutions to promote inclusivity and connectivity to displaced and refugee populations,” the BSDC added.
New business in the region takes about 17 days to start on, compared to more than 43 days in 2003, the report alluded.
The report stressed that companies should work closely with civil society to ensure the fulfilment of labour rights, gender equality, and environmental stewardship as we move closer to 2030.
