Setting the foundation: Infrastructure development and an investment-friendly climate identified as central to sustainable, long-term expansion

State authorities have worked to develop Kaduna’s infrastructure and business climate in recent years, identifying them essential to sustainable growth. The Kaduna State Infrastructure Master Plan (KADIMP) 2018-50 is the state’s long-term strategy for coordinated infrastructure development. The plan lays out interventions in the key sectors of transportation, housing, education, health, water and sanitation, and agriculture. Total projected expenditures under KADIMP amount to N20trn ($53.4bn). The plan aims to ensure that Kaduna becomes a model for urban development by 2050, as it leverages its strategic

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Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Targeted measures: Strategies to facilitate loan recovery and shift growth-oriented financing to critical sectors of the economy

The authorities have been working for years to ease the burden of non-performing loans (NPLs) on the financial system. In 2009, in part due to the global financial crisis, the Central Bank of Nigeria (CBN) bailed out eight distressed lenders by injecting $4bn into the market. The Asset Management Corporation of Nigeria (AMCON) was formed the following year to recapitalise distressed banks and provide a venue to sell off NPLs. As of November 2020 AMCON had taken over N3.7trn ($9.9bn) worth of bad loans from

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Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Tech support: Local start-ups work to promote financial inclusion and serve the large unbanked population

Financial technology (fintech) has been gaining momentum in Nigeria as start-ups look to create innovative solutions to fill socio-economic gaps such as exclusion from the formal banking system. An estimated 56% of Nigerian adults are unbanked and 36.8% do not have access to financial services. The country’s more than 200 fintech firms – which account for over half of all start-ups – aim to close this gap. Segments The focus of Nigerian fintech companies is primarily on payment and lending, geared more towards consumers and

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Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

A broader view: The Covid-19 pandemic served as the latest reminder to Gulf countries of the need for economic diversification

While many Gulf nations were already working to diversify their economies prior to the Covid-19 pandemic, the global recession in 2020 prompted governments in the region to either reassess or accelerate their strategic plans. With economies around the world operating under capacity and global travel severely curtailed for much of 2020, there was a significant drop in demand for – and subsequently the price of – oil, which is a major source of income for the GCC. For example, oil accounts for approximately 30% and

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Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Road to recovery: Gulf countries chart a course for recovery from the pandemic

Facing the twin challenges of a sharp reduction in trade and a steep drop in the price of oil as a result of the Covid-19 pandemic, countries in the Middle East weathered a particularly difficult 2020. While circumstances have been challenging, the region has looked to digital innovation as a path to recovery, and a number of governments have accelerated their existing plans for economic diversification. Impact on Oil With a number of Gulf countries deriving significant portions of their GDP from hydrocarbons, the region was particularly vulnerable to the immediate effects of the pandemic. Global efforts to contain the virus – which included severely

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Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Bigger picture: Higher education institutions play a key role in meeting the needs of the region’s post-Covid-19 economy

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While higher education institutions have been effective in developing short-term solutions to some of the challenges associated with the Covid-19 pandemic, they can also play a key role in realising long-term governmental development strategies that can boost the prospects of a sustainable recovery. This is a particularly pressing issue for countries in the Gulf, many of which are deploying long-term strategies to reduce their dependence on hydrocarbons revenues. Driving Transformation One prominent example of this tendency is Saudi Arabia, the largest oil exporter in the

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Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Major makeover: Institutions in the GCC are making substantial and potentially permanent changes to teaching methods and business models

The initial wave of lockdowns in early 2020 prompted education entities to rapidly move to teaching online. While this broad-based shift towards digital learning has largely been reactive, in many cases it accelerated an existing transition to a more blended and technologically oriented approach. However, further investment and policy initiatives are required – including digital literacy training for both students and educators, and the establishment of national guidelines and standards. In parallel to this, access to education can be improved – for example, through the

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Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Alternative approaches: The pandemic has accelerated the growth of new models such as staycations and sustainable tourism

Various governments in the region are looking to new, alternative tourism models to drive their pandemic recoveries, with an emphasis on ecological options and “staycations”. Both in order to reboot its tourism industry and as part of its drive to diversify the economy away from hydrocarbons, Saudi Arabia is developing several major ecological tourism projects. In April 2021 the Red Sea Development Company announced that it had raised $3.8bn for the Red Sea Project through the first ever riyal-denominated green finance credit facility. The region

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Chaim Zach-Managing Director and CEO-Agric International Technology and Trade; Kabiru Rabiu-Group Executive Director-BUA Group; and Aliyu Abbati Abdulhameed-Managing Director

Healthy travels: Leading medical tourism destinations are positioning themselves for an anticipated rebound in activity post-pandemic

Prior to the outbreak of Covid-19, medical and wellness tourism was a significant growth industry in many emerging economies. The last decade saw a boom in medical tourism: by 2018 the global market was generating $58.6bn annually, and in 2019 it was forecast to grow at a compound annual growth rate of 11.7% to reach more than $142.2bn by 2026. While the pandemic represents a major setback for the segment, there are signs that it may be recovering in several markets. Major Markets The growth

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George Richani-CEO-Al Ahli Bank of Kuwait

After the storm: The post-pandemic future of global Islamic banking

While Islamic banks emerged relatively unscathed from the 2008 global financial crisis, Covid-19 is having a deeper impact. Compared to conventional financial institutions, Islamic banks are more exposed to small and medium-sized enterprises (SMEs), microfinance and retail lending – particularly in Asia. The industry was on track for strong growth in 2020, but due both to the pandemic and oil price uncertainty, in June of that year international credit ratings agency Standard & Poor’s projected it would record low- to mid-single-digit growth in 2020-21. This is compared to 11.4% growth in 2019, which was underpinned by a more dynamic sukuk (Islamic bond) market and new

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