Source: Al-Wafd Newspaper
Prof. Dr. Ali Mohammed Al-Khouri
The world has witnessed pivotal transformations in recent decades that have redrawn the map of global economic and knowledge power, while the Arab world finds itself striving to keep pace with these rapid changes. While major powers have succeeded in building economies based on innovation, technology, and knowledge, most Arab economies still face structural challenges that have hindered their full integration into the new global economy. The gap between Arab and developed countries is no longer limited to economic growth rates; it has extended to education, scientific research, and technological development, thus limiting the region’s ability to contribute effectively to international progress and distancing it from centers of international decision-making and policy formulation.
Rentier economy and decline in productive diversification
Much of this delay stems from an over-reliance on rentier economies, where oil, gas, and remittances from workers abroad constitute the primary source of national income in several Arab countries. This has made their economies more vulnerable to global fluctuations and less capable of achieving sustainable productive diversification. Furthermore, most Arab industries remain traditional, relying more on imports than exports, which has diminished their competitiveness. Despite the high proportion of young people in the Arab world, unemployment rates remain high, reflecting a flaw in economic and educational policies that have yet to align skills with the needs of the modern labor market.
Governance and institutions also pose internal obstacles to development.
Furthermore, weak governance in official institutions and dysfunctional decision-making systems constitute major obstacles to sustainable development. This has led to an unstimulating investment environment and reduced the effectiveness of economic and administrative institutions. Insufficient spending on scientific research has also contributed to the widening knowledge gap, with allocations for this purpose in most Arab countries not exceeding 1% of GDP, compared to between 3% and 5% in major industrialized nations. Consequently, innovation has remained limited, and most technology is imported, used rather than produced, thus deepening technological dependence and weakening competitiveness in the global digital economy.
Education crisis and limited skills
In the field of education, Arab educational systems remain reliant on rote memorization and passive learning, neglecting critical and creative thinking methodologies. Many educational programs lack genuine engagement with the demands of the digital economy and future skills, leading to a gap between educational outcomes and the labor market. Furthermore, despite some efforts to develop it, the digital infrastructure remains inadequate to keep pace with global advancements in artificial intelligence and other advanced technologies.
The shift towards a knowledge economy
For the Arab world to transition to a new phase, it must reformulate its economic vision on productive, knowledge-based foundations. The shift towards a diversified, technology- and industrial-driven economy requires serious investment in human capital through the development of education and scientific research systems and their organic integration with modern economic sectors. It also necessitates comprehensive institutional reform based on transparency and accountability, creating a stable and attractive investment environment capable of drawing in talent and expertise.
The will to change
However, the greatest challenge lies not in the scarcity of resources, but in the lack of collective will to adopt a new development model based on innovation and productivity. The Arab world possesses a young and dynamic workforce and vast natural resources, but it needs a comprehensive strategic vision that recognizes that the future cannot be waited for, but rather is built through knowledge, determination, and the ability to make timely decisions.
Ultimately, the difference between progress and backwardness will not be measured by the size of resources, but rather by a nation’s ability to transform knowledge into added value. Arab backwardness is not inevitable; it is the result of a trajectory that can be altered. However, the most crucial question remains: does the Arab region possess the intellectual and political courage to reposition itself within the new global landscape? The answer to this question will determine whether the region will become a central player in the global economy or remain outside the sphere of development witnessed by the contemporary world.
