PwC: Investing in research-intensive institutions is key to economic diversification in the GCC

GCC countries are increasingly moving towards becoming knowledge-based economies. Despite some recent progress, the volume of research publications remains relatively low compared to countries outside of the GCC and still a long way behind more established knowledge economies, said PwC in its latest report.

Sally Jeffery, Global Education Network Leader at PwC said: “Knowledge-based economies start from a stable foundation of research, and a well-functioning research ecosystem is really challenging to build. You need patience, a significant funding investment, and a lot of effort and determination. The many different players involved need to work in unison so that new ideas have every chance of getting out of the lab and into real-life applications. This requires significant collaboration with international institutions, as well as between regional governments and private industry.”

She added: “Recent survey results and discussions with aspiring research universities have helped us identify four key challenges within the GCC research ecosystem. To succeed in this endeavor, governments in the GCC will need to develop a clear national research agenda, establish supportive legal frameworks, distribute research funding effectively, incentivise academic/industry collaboration and empower institutions and individuals. Meanwhile, universities also need to further invest in their research facilities.”

The PwC report found that in the GCC, Saudi Arabia, the UAE and Qatar are producing the majority of research, with the largest proportion coming from KSA universities (23,448 publications[1]). When looked at in terms of size of population, Qatar is performing well regionally, with a ratio of 1.6 publications to every thousand inhabitants. In the UAE, seven universities are dominating the country's research output.

GCC governments are taking actions at a strategic level to increase the number of post-doctoral researchers and PhD students, but they have a long way to go. For example in the KSA the number of PhD students per 1000 inhabitants (aged between 15-64) is 0.34 compared the OECD average of 1.25, and 2.69 for a more mature research economy such as the UK. It also isn’t easy given the global war on research talent - the region’s top researchers are easily tempted to work in other countries where the ecosystem is more mature and they stand a greater chance of making an impact more quickly. In the KSA, for example, 13,000 PhD students study abroad - almost double the amount who choose to remain to conduct their research domestically.  Research is highly competitive and timing is all important.

Sally added: “A country’s ability to value, absorb, and apply new knowledge depends greatly on the investment it makes in research and development, and how it builds local capabilities to innovate and gain a competitive advantage from that knowledge. If all of these key components can work together more effectively, then the GCC will enjoy a much greater chance of success in building a thriving academic research ecosystem and a more sustainable knowledge-based economy.”