As Gulf economies accelerate their shift from resource-driven growth to innovation-led development, the tendency to apply global models without considering local realities can pose a challenge, says Mark Mortensen, Associate Dean and Professor of Organizational Behavior at INSEAD, in an interview with TRENDS.
How do you see knowledge and innovation shaping economic growth in MENA over the next five years? Which sectors will take the lead?
Over the next five years, knowledge and innovation will redefine the MENA region’s economic landscape, moving it beyond traditional resource dependence. Governments—notably in the UAE and Saudi Arabia—are investing heavily in AI, technology, and knowledge-based policies, while private capital and startup activity are accelerating the shift.
Technology and the digital economy will lead the charge, with AI at the forefront. Fintech and digital payments will also be growth engines, given the scale of market opportunities. Startup ecosystems are thriving, supported by incubators, regulatory sandboxes, and talent-friendly policies that attract high-growth ventures. Rising funding flows are enabling scale-ups and speeding up commercialization.
How do you see AI and other emerging technologies impacting business and entrepreneurship in the GCC?
AI and extended reality (XR) are no longer future trends; they are reshaping leadership, business models, and education across the GCC today. Businesses are adopting these technologies to improve efficiency and create new models, with a focus on aligning global best practices with local needs.
In a Harvard Business Review article, I discussed how leaders must adopt a highly intentional approach to technology adoption, including conducting an “AI value audit”—a holistic assessment of benefits and costs. Outsourcing too many tasks to AI may deliver short-term efficiency but risks undermining long-term organizational value, including skills, engagement, and social connection.
AI is also being leveraged as a vehicle for tech-enabled learning. The Abu Dhabi Department of Education and Knowledge (ADEK) has sponsored INSEAD’s Immersive Learning Experience initiative, using XR and AI technologies to transform leadership development. The program is already used by more than 40 INSEAD faculty and reaches over 25,000 learners globally.
What are the biggest challenges and opportunities for entrepreneurs in MENA?
The region’s rapid transformation presents both opportunity and challenge. One key gap is the mismatch between traditional skill sets and the growing need for adaptive, innovation-driven leadership. Building local capacity through high-impact programs is essential.
Another challenge is applying global models without sufficient cultural alignment. Entrepreneurs must combine ambition with a deep understanding of local norms and societal context. To strengthen innovation culture, MENA must better connect research, enterprise, and leadership development, while fostering healthy risk-taking and intentional experimentation.
How important are policy and regulation in building a knowledge-driven economy?
Government policy and regulation are foundational. Partnerships with ministries, sovereign wealth funds, and regulators should be built on shared commitments to long-term capability and connectivity. Forward-looking leadership across the GCC has played a key role in establishing a foundation for sustainable growth.
Countries should also cooperate across industries, invest long-term, and work with global partners who can bring international expertise while elevating local success stories globally.
How can businesses adapt global trends to local needs?
MENA is emerging as a hub for knowledge, talent, and innovation. While no one can predict the future, leaders can prepare for uncertainty by building flexibility and adaptability. The goal is to create agile organizations that apply global best practices while customizing them for local relevance, supported by strong links between global research and regional priorities.
