Future Industries Shaping the Global Economy
A recent study by McKinsey & Company reveals insights into the current and future key industries that are expected to shape the global economy by 2040. The analysis, conducted by the McKinsey Global Institute, identifies 12 current industries and 18 emerging sectors that will dominate the market landscape. The study highlights that by 2040, these future industries could generate up to $48 trillion in sales, significantly impacting global GDP.
Current and Future Key Industries
The current key industries include Software, Semiconductors, Internet services, and E-commerce, with their market capitalizations reaching trillions of dollars. In contrast, the future key industries, which include sectors like E-commerce, AI Software and Services, and Electric Vehicles, are projected to see substantial growth in profitability, with estimates ranging from $280 trillion to over $1 trillion.
Notably, the semiconductor industry is expected to maintain a strong profit margin, while the E-commerce sector is predicted to grow significantly due to the ongoing digitization of traditional retail models. The study emphasizes that 65% of market capitalization in these key industries will likely be dominated by U.S. companies, while European firms will capture only 9%.
Incentives for Future Industries in the UAE
In a parallel development, economic experts in the UAE are advocating for increased incentives and support for local and international companies investing in future industries, particularly those leveraging advanced technology and artificial intelligence. Recommendations include prioritizing government tenders, tax exemptions, and reduced costs for recruiting skilled workers. Experts assert that these incentives are crucial for fostering a diversified economy, creating job opportunities, and achieving sustainability.
Dr. Ali Al-Amiri, an economic expert, emphasizes the need for government support in sectors such as renewable energy, food security, and advanced technology. He argues that the UAE's advanced infrastructure and logistical capabilities position it well as a regional hub for technology and industry.
Competitive Landscape and Future Growth Potential
The experts also highlight fierce competition from global economies, including Europe, China, and the United States, in attracting investments in advanced industries. They suggest that the UAE should consider offering free land leases, tax exemptions, and salary incentives to remain competitive. Furthermore, the study underscores the importance of partnerships to facilitate technology transfer and encourage foreign investment in the UAE's burgeoning sectors.
The call for more incentives aligns with McKinsey's findings that industries such as robotics, autonomous driving, and biotechnology are poised for significant growth. As these sectors evolve, they present opportunities for both local and global economies to thrive in the coming years.
