World Bank: SME and Startup Support Is Key to Economic Growth
Supporting small and medium-sized enterprises (SMEs) and startups is considered one of the key drivers of economic growth in the region.
According to Startup.az, this was stated by Ramil Maharramov, Senior Development Projects Specialist at the World Bank, during the event titled “Youth Without Borders: A Driving Force for Shared Regional Prosperity”, organized as part of the 51st Annual Meeting of the Islamic Development Bank (IsDB) Group in Baku.
Maharramov noted that regional studies indicate a high share of low-productivity businesses across many countries in the region.
“However, countries can make significant progress in enhancing their growth potential by directing greater support toward small and medium-sized enterprises (SMEs) and innovative companies, including startups. Such an approach could unlock the region’s broader development potential more effectively,” he said.
He added that another important area where regional countries and the Organisation of Islamic Cooperation (OIC) can contribute is the liberalization of youth mobility, particularly for educational purposes.
“For example, around half a million students are currently studying abroad, and approximately 25 percent of them choose Türkiye as their destination, while the remainder pursue education in various other countries. In this context, the extensive educational opportunities available in the Gulf countries could be utilized more effectively, while academic exchange opportunities from the Gulf region to other countries could also be expanded. This is especially relevant given the presence of a number of prestigious higher education institutions both in the Gulf and across this part of the world,” Maharramov said.
He further emphasized the importance of existing regional cooperation and integration initiatives.
“One example is the Gulf region, which represents a strong model of economic integration. Another is the Central Asia and Caucasus cooperation space, which includes Azerbaijan. A third is the broader Eurasian economic area. There is considerable potential to expand trade among these countries. Currently, intra-regional trade accounts for only around 5–7 percent of total trade. Instead, the majority of trade is conducted with China, followed by Russia. This indicates substantial opportunities for regional countries to strengthen trade relations with Gulf states, other OIC member countries, and even African nations,” he noted.
According to the World Bank representative, in addition to trade, the free movement of labor and especially young people could generate significant added value, both through mobility into and out of the region.
“A number of countries could greatly benefit from attracting innovative and creative young talent. Furthermore, introducing a ‘youth impact assessment’ mechanism across all projects implemented by the OIC could make a meaningful contribution to youth-driven initiatives throughout the region,” Maharramov concluded.