How investment, international expertise and long-term ambition are building lasting economic capabilities across the Gulf.
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When I first began working in the Gulf was already undergoing a remarkable period of economic transformation. Major infrastructure projects were taking shape, international companies were establishing a stronger regional presence, and governments were directing substantial resources toward transportation, education, industry and technology.
Yet what has always interested me most is not simply the scale of these investments, but what they make possible over time.
A new airport connects a country to international markets. A manufacturing facility introduces industrial processes. A major sporting event attracts global attention. But the lasting economic value of such investments often emerges beyond the original project, through the knowledge, institutions, businesses and professional capabilities that develop around them.
Over the years, I have met many professionals and entrepreneurs, including fellow Austrians and people from Germany, who have contributed their expertise to developments across the Gulf. These encounters have given me a personal perspective on a transformation that is often described primarily through investment figures and national strategies.
They have also reinforced a conviction: the long-term strength of an economy depends not only on the capital it can mobilise, but on the capabilities it can develop, retain and continuously improve.
This is becoming one of the defining questions for the next phase of the Gulf Cooperation Council.
From Investment to Lasting Economic Value
The GCC has established a significant international position as a centre for investment, infrastructure development and economic ambition. Sovereign investment institutions have expanded their international portfolios, governments have supported major development programmes, and companies have gained access to increasingly sophisticated infrastructure.
The next phase involves building on these foundations.
For decades, economic development in the Gulf has been associated with the construction of physical assets and the acquisition of international technology. These remain essential activities, but acquiring a sophisticated system is different from developing the knowledge required to operate, improve and eventually create such systems.
Consider an industrial facility built with international engineering expertise. Its initial contribution may be measured through investment, employment and production capacity. Over time, however, additional value can emerge as engineers gain experience, domestic suppliers develop capabilities, and new businesses begin providing specialised services.
The same principle applies to healthcare, research, logistics, tourism and professional services. Investment becomes more economically significant when it creates expertise and opportunities that remain long after the initial project is completed.
Several GCC countries already provide compelling examples of this evolution.
Qatar: From Sporting Ambition to Economic Capability
Qatar is particularly interesting to me because of my professional connection with the country over many years.
When considering its transformation, the FIFA World Cup in 2022 is naturally one of the most visible milestones. However, the economic significance of Qatar’s investment in sport extends well beyond the tournament itself.
The preparation for the World Cup involved extensive investment in transportation, hospitality, stadium infrastructure, logistics, security and event management. These activities created opportunities for international partners and domestic businesses alike.
One particularly tangible example came from stadium construction. According to Qatar’s Government Communications Office, 250,000 seats for six World Cup stadiums were produced locally by Coastal Qatar.
This illustrates how a project of international significance can generate demand for domestic manufacturing and industrial services.
(Source: Government Communications Office — FIFA World Cup Qatar 2022 Legacy)
Yet I believe an equally interesting part of Qatar’s sporting development began long before the World Cup.
Aspire Academy, established in 2004, represents an investment not simply in sporting facilities, but in athlete development, education, coaching expertise and sports science.
The institution has developed international partnerships and brought together specialists from many countries. According to Aspire Academy, its coaches, scientists, teachers and supporting professionals come from more than 60 nations.
(Source: Aspire Academy — Who We Are)
Through my years of engagement with Qatar, I became aware of Austrian professionals and people within my wider network whose experience contributed to the country’s evolving sporting environment.
One publicly documented example of this international exchange is Markus Egger, whose professional background includes senior responsibilities within Red Bull’s international sports operations, including football organisations in Austria, Germany and other markets. He joined Aspire Academy in 2015 and subsequently became its Director of Sport and Strategy.
(Source: Aspire Academy — Markus Egger)
These international connections are an important part of the story. Major institutions rarely develop their capabilities in isolation. They learn from established organisations, recruit experienced professionals, build international networks and gradually develop their own methods and expertise.
Qatar has also developed complementary institutions such as Aspetar, its specialised sports medicine hospital, which provides medical services and contributes to the development of expertise in sports medicine and performance.
Taken together, these investments represent the foundations of an economic activity that extends beyond hosting international competitions. Sports medicine, education, professional training, event management and associated services create opportunities for institutions and businesses to develop specialised competencies.
The long-term commercial impact must still be judged through sustained demand, operating performance and the ability to retain knowledge. Nevertheless, Qatar demonstrates how a sector initially associated with international visibility can contribute to broader institutional and economic development.
A major tournament may last only a few weeks. The expertise developed through years of preparation and subsequent operations can remain valuable for decades.
The UAE: Capital Becomes Industrial Expertise
The United Arab Emirates offers a different example of the transition from financial investment to productive capability.
Abu Dhabi’s investment company Mubadala has long pursued international investments alongside the development of domestic industries. One of the clearest examples of this approach is Strata Manufacturing, established in Al Ain to produce advanced aerospace components.
Strata began manufacturing in 2010. By April 2025, it had produced 100,000 aircraft structural components for international manufacturers including Airbus, Boeing, Pilatus and Leonardo.
According to the Abu Dhabi Media Office, UAE nationals represented 67 percent of its workforce when the milestone was announced.
(Source: Abu Dhabi Media Office — Strata Reaches 100,000 Aerospace Components)
The importance of this development extends beyond the number of components produced.
Aerospace manufacturing requires precision, demanding quality standards, experienced technical personnel and reliable production processes. Becoming an established supplier to international aircraft manufacturers requires continuous investment in organisational competence.
These capabilities cannot simply be purchased as finished products. They develop through years of practical experience, cooperation with international partners and the gradual assumption of greater technical responsibility.
Strata therefore represents more than an industrial facility. It demonstrates how investment can support the development of specialised manufacturing expertise within a regional economy.
Its evolution over approximately fifteen years also illustrates an important reality: building industrial capability is a cumulative process rather than a single investment event.
Saudi Arabia: Transforming Purchasing Power Into Domestic Industry
Saudi Arabia illustrates another approach to creating local economic value: using the purchasing power of established industries to support domestic production and industrial supply chains.
As one of the world’s major energy producers, the Kingdom has long required sophisticated equipment, engineering services, industrial materials and specialised technologies.
Historically, substantial portions of these requirements have been supplied through international companies and global procurement networks.
Aramco’s In-Kingdom Total Value Add programme, known as iktva, was established to encourage greater domestic participation in these supply chains.
In February 2026, Aramco announced that local content had reached 70 percent of its procurement of goods and services. The company also reported that the programme had helped attract more than 350 investments in new manufacturing facilities and enabled 47 strategic products to be manufactured in Saudi Arabia for the first time.
(Source: Saudi Aramco — iktva Programme and Local Content Development)
These company-reported achievements are significant, although local-content percentages alone do not fully measure technological sophistication or international competitiveness.
The underlying economic mechanism is particularly interesting.
Large industrial customers can create the commercial demand needed for suppliers to establish factories, recruit employees and develop technical expertise domestically. International manufacturers may enter through partnerships, joint ventures or the establishment of local production facilities.
Over time, these activities can help companies develop the experience needed to serve additional customers and compete in wider markets.
This represents a potentially important shift from importing industrial products toward participating more directly in their production and development.
The ultimate measure of success will be whether these businesses become competitive, innovative and commercially sustainable beyond their original customers.
Bahrain: An Industrial Connection to My Austrian Roots
Bahrain’s aluminium industry provides another example of long-term industrial development, and it carries a particularly personal connection to my Austrian background.
I come from Villach, in the southern Austrian state of Carinthia, a region with a strong tradition of engineering and specialised industrial businesses.
One company I remember in this context is KMF, Kärntner Maschinenfabriken, known for industrial machinery and technological developments in aluminium recycling.
Many years ago, I became aware of connections involving KMF and aluminium recycling activities in Bahrain. Although I no longer recall the exact project arrangements, the association stayed with me because it illustrated how specialised engineering knowledge from a relatively small European city could become relevant to industrial development thousands of kilometres away.
KMF’s technological work in aluminium recycling was recognised in Austria in 2013, when the company received an innovation award for a system designed to recover usable materials from aluminium recycling residues.