New HSBC research shows that the largest cities across the Middle East, North Africa, and Turkey (MENAT) region will need to prioritise sustainable innovation if they are to thrive in the post-coronavirus (COVID-19) era. This includes the need to empower human capital, and support new flows of trade.
Published on UN World Cities Day, the HSBC City Report focuses on a variety of cities in the region, namely Abu Dhabi, Cairo, Dubai, Istanbul, and Riyadh. It stresses the need for city and business leaders to use the COVID-19 pandemic as a catalyst for more diversified, more digitised, cleaner, and greener cities.
Commenting on the report, Todd Wilcox, Deputy Chairperson and CEO of HSBC Egypt, said, “Egypt’s proven ability to evolve in response to constant change over millennia can be seen clearly in Cairo’s response to supporting sustainable development and business growth, despite the uncertainty caused by COVID-19.”
“With Cairo forecast to grow by more than 35% by 2035 to be one of the world’s fastest-growing megacities, HSBC is supporting customers and communities through this next phase of change,” Todd said. “Entrepreneurship is booming, fuelled by a young, creative and tech savvy population, and at least 10% of all new start-ups in Cairo are in the sustainable sector.”
He added, “Targeted national investment programmes, major projects, powerful demographics and economic reforms will help make Cairo a magnet for future global capital flows.”
The report analyses how the pandemic has amplified awareness on the severity of climate change, and the urgent need for more sustainable economies and infrastructure. They indicate that COVID-19 is broadening public support for an environmentally responsible future, and that today’s relatively low oil prices may be the catalyst for an historic shift towards cleaner energy.
The report also details how the pandemic has put a fresh focus on the importance of human health and balanced lifestyles. The reports suggest that governments may be more likely to incentivise medical research, and create dedicated schemes to attract. At the same time, governments are also more likely to retain talent to support drug development and vaccine discoveries.
The report highlights that unpredictable levels of lockdown have created a new imperative to reinvent global supply chains and diversify trade relationships. For cities in the Middle East that have strengthened ties during the pandemic, there are increasing opportunities for complementary development and specialisation across multiple sectors that will serve the wider region.
Professor Greg Clark, author of the report and Global Head of Future Cities and New Industries at HSBC, said, “MENAT is home to bustling cosmopolitan cities with extraordinary histories, and these five in particular are primed to set the standard as future global hubs.”
He also said, “Their next chapter of growth will depend on the individual ability of their economies to drive climate and sustainability-oriented innovation, reinvented trade flows, and the pursuit of human health and happiness.”
The HSBC Cairo City Report is part of a wider Future Cities campaign that the bank has launched across the region. The campaign also includes bringing the reports to life in street art that captures the elements of each city’s next cycle of development, while paying tribute to their heritage.
