The Ruler of Ras Al Khaimah has called upon Arab enterprises to embrace innovation and invest in knowledge.

Sheikh Saud bin Saqr Al Qasimi, who was addressing ministers, CEOs and economists at the second edition of the Global Arab Business Meeting (GABM), said small and medium enterprises (SMEs) would ensure their own survival in tough times by investing in knowledge, research and innovation, which were powerful growth drivers.

He highlighted that investment in knowledge had often been overlooked in the Arab world in favour of more tangible investments such as infrastructure and new projects. Quoting figures from the Unesco Science Report, Sheikh Saud said gross expenditure on research and development had been low in Arab countries, between 0.1 and 1.0 per cent of GDP while OECD countries devoted about 2.2 per cent of GDP to that field.

Speaking at the event, Sheikha Lubna Al Qasimi, UAE Minister of Foreign Trade, said that greater economic integration was the best way to sustain peace stability and prosperity in the Arab world.

Referring to the Arab Spring and the sweeping changes taking place in many Arab countries, Sheikha Lubna said the region was actually in the cusp of positive and enduring change.

Delivering his speech, Indian Minister for Urban Development Kamal Nath said that a new world order was emerging on the global economic front as the gravity of economic growth had shifted to the East.

“Western economies are too saturated and too leveraged to sustain economic growth for either them or the rest of the world. The world needs to realign its compass as the gravity of economic growth has shifted to the East,” Nath said.

Also speaking at the opening session, Pakistani Federal Minister and Benazir Income Support Programme (BISP) chairperson Farzana Raja said any further deepening of the financial crisis in Europe could lead to sharper growth slowdown in Asian economies, which were already battling inflationary pressures leading to monetary tightening in general.

Organised by Horasis with Ras Al Khaimah Investment Authority (Rakia) and RAK Department of Economic Development as co- hosts, GABM 2011 attracted over 300 top decision-makers from businesses and governments.

Dr Khater Massaad, CEO of Rakia, and Frank Jurgen Richter, chairman of Horasis, welcomed the delegates.