Dubai needs to diversify for stable growth | The National:
"AlixPartners is a global consultancy known for its work on corporate turnarounds and restructuring. Eugenio Berenga, managing director of the company’s enterprise improvement practice in Dubai, talks to Sean Cronin about the economic prospects of the emirate and the region five years on from the Dubai World crisis.
What are the biggest challenges facing regional corporates in the current economic cycle?
This region is a growing economy that has invested significantly in its basic industries. Many companies have grown very fast and have become very profitable. But now many of them face a different paradigm because if they want to grow faster they need to go international, and that is a completely different ball game. If you look at the economy here, it is not very diversified. A significant portion of the economy is driven by oil and gas and there is another big portion driven by construction and real estate development. The third element is consumer goods trading. All of the large organisations have developed on these three main sectors. The more people who get involved in this, the fewer opportunities there are. So they need to diversify into different industries."
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