Florin Vasvari, Professor of Accounting and Executive Dean of Executive Education, Middle East, and General Manager at London Business School, Riyadh, feels a knowledge economy can be set up only with an educated local workforce that is bolstered by global talent.
Speaking to TRENDS, he says a conducive regulatory atmosphere, alongside tax incentives and access to capital, is vital for economic diversification.
What truly defines a knowledge economy and how close are countries like the UAE and Saudi Arabia to achieving that vision?
A true knowledge economy is built on a highly educated local workforce complemented by global talent. To sustain momentum, both countries must continue investing aggressively in education at all levels and in research and innovation. A sophisticated workforce—supported by a business-friendly regulatory environment, competitive tax incentives, and access to capital—can drive innovation, productivity, and economic diversification.
The UAE and Saudi Arabia have made impressive progress in education, digital infrastructure, and research in a relatively short time. Yet, a complete transformation requires embedding knowledge creation across all existing industries, while simultaneously developing new ones. Both nations are on the right trajectory, but sustained investment and consistent policy focus will be essential to reach the depth and resilience characteristic of leading global knowledge economies.
Many governments are investing heavily in innovation hubs and advanced technologies. What are the less visible ingredients that determine whether such investments translate into knowledge creation and productivity?
While investments in technology and innovation hubs are essential, success often depends on less tangible factors such as organisational culture, the strength of networks, and a willingness to embrace failure as part of experimentation. Fostering open communication and creating incentives for calculated risk-taking are critical to nurturing innovation.
Their effectiveness can be measured by their ability to attract global talent, generate patents, and export the knowledge they create internationally. Aligning these investments with long-term national strategies further ensures that innovation translates into practical, locally relevant solutions with real impact.
How central is talent development to the region’s economic transformation, and what kinds of leadership skills or mindsets are most urgently needed today?
For example, Vision 2030 places human capital development at the heart of Saudi Arabia’s national and economic transformation. The government has made significant progress in education reform, scholarship programs, and institutional strengthening. However, it is not enough to invest solely in infrastructure and technology; human capital—particularly local talent must be equipped to fully leverage these resources.
The region will continue to require business leaders who are globally minded and adept at navigating complex, rapidly changing environments. Skills such as critical thinking, resilience and effective communication are paramount. Equally important is fostering a mindset of continuous learning and cross-sector collaboration.
How can executive education and lifelong learning become core components of a nation’s economic infrastructure, rather than just academic extensions?
We believe that executive education and lifelong learning should be integral to the national economic framework, serving as engines for continuous innovation and leadership development. This is the model embraced by the world’s most successful global companies. Educational partners must therefore design programs that address real-world business challenges as they emerge and foster meaningful collaboration between institutions and industry.
The recent launch of London Business School’s Executive Office in Riyadh represents more than just a milestone, it is a statement of intent and a demonstration of our long-term commitment to the region. Like other leading global institutions present in Saudi Arabia, we view the country as a dynamic force in business and innovation.
The rapid increase in participation from Saudi professionals in London Business School’s programmes, rising by more than 250% in recent years—underscores both the appetite and momentum for lifelong learning. This commitment to continuous learning should become an expected career norm. By embedding such educational opportunities into workforce planning and national policy, countries like Saudi Arabia can foster greater agility, innovation and sustained competitiveness.
What have you observed about leadership capacity in the Middle East?
The Middle East demonstrates remarkable ambition and building strong leadership pipelines is essential. In a highly competitive and rapidly evolving global market, effective leadership becomes a true differentiator. The nations that invest consistently in developing both business and technical capabilities will be the ones that attract top talent and drive long-term value creation.
Countries such as Saudi Arabia can sustain leadership capacity by investing early in talent identification and development, fostering mentorship cultures and emphasising experiential learning. Rotational assignments, international exposure and thoughtful succession planning are equally vital. Moreover, a strong commitment to diversity and inclusion helps cultivate leaders equipped to navigate complexity and lead transformative change.
The UAE and Saudi Arabia often appear to be moving in parallel toward similar goals. How do their approaches to innovation and talent development differ and what might they learn from one another?
Both the UAE and Saudi Arabia have made remarkable progress toward developing knowledge-based economies. The UAE often pursues rapid policy implementation, leveraging its global connectivity and pragmatic openness to international talent.
Saudi Arabia, with its much larger population, places greater emphasis on scale and localization, focusing on building domestic capabilities. Each can learn from the other: the UAE offers agility and openness, while Saudi Arabia’s broader economic base brings strategic depth in developing new sectors and cultivating indigenous talent.
A true knowledge economy also requires a shift in mindset toward openness, experimentation and continuous learning. Do you think that shift is underway in the region?
Yes, that mindset shift is clearly underway, most visibly among the younger generation. Across the region, we are seeing governments actively champion openness to new ideas, new business models and new ways of working. There is also a marked rise in collaboration that cuts across borders, sectors and institutions. The momentum is undeniable. It is reflected not only in the performance of the Gulf economies, but also in the growing appetite for innovation, entrepreneurship and lifelong learning. Each country in the region is, in its own way, writing a new economic playbook.
