Doneddu & Clement: Companion Direct Investment | An Accelerator for the Economic Development of Transforming Resource-Rich Nations

This paper helps explain how resource-rich nations–such as the Gulf states–can avoid the “resource curse” by developing investment in innovation through a novel investment structure: the Companion Direct Investment (CDI) vehicle.  Recommended reading for those interested in the problem of transforming natural resource wealth into sustainable growth.

ABSTRACT:

The discovery of hydrocarbons in a number of countries especially in the Middle-East has enabled these nations to develop and generate significant wealth. However, long-term sustainability within these countries’ transforming economies has not been addressed in full, with oil revenues still accounting for the vast part of the countries’ income. A novel open innovation concept, the Companion Direct Investment (CDI), is herewith introduced. By using the Emirate of Abu Dhabi as a case study, we discuss CDI’s potential as a complimentary approach to enable value exchange leading to the location and nurturing of knowledge enterprise as a means to accelerating the transformation of these nations into knowledge-based economies.

 

Available for download here.

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