Blue bonanza beckons for Gulf

Multiple challenges

Despite the challenges brought about by the pandemic, the Ukraine-Russia conflict and soaring inflation, non-oil sectors are poised to grow in GCC countries this year.

The International Monetary Fund forecast that the GCC economy will grow 6.4 percent this year and that countries in the Middle East will gain up to $1.3 trillion from additional oil revenues in the next four years.

In a project funded by the European Union and published in April last year, titled "Assessment of the challenges and opportunities for the development of Blue Economy projects in GCC member countries", the IMF said the Gulf countries had important maritime activities before the development of oil as the productive, export and revenue sector since the 1970s.

It underscored transport and fishing for both food and pearls, with the former contributing significantly to their food security, and the latter as a source of export revenue.

The reach of the GCC countries to the sea covers the Gulf of Oman, the Gulf of Suez, the Gulf of Aqaba, the Strait of Hormuz, the Red Sea and the Arabian Sea, the study said, giving the region direct access to the Indian Ocean.

Nico Crepaldi, head of custom content at the Massachusetts Institute of Technology Review, said the GCC and Middle East economies more broadly are poised to benefit tremendously from increased attention to the blue economy.

This is because the Gulf and Mediterranean economies already have clusters of expertise and innovation around desalination, aquaculture acceleration and climate management systems, he said.

There are also energy production and global shipping industry ecosystems around the region, he said, making the development of carbon-free shipping technology, chemicals and solutions for more environmentally responsible ship antifouling and offshore wind platform development additional opportunities, particularly for the UAE and Israel.

The Massachusetts Institute of Technology runs an index called The Blue Technology Barometer, a ranking of 66 coastal countries and territories on their progress and commitment toward protecting ocean sustainability.