A Deeper Understanding of Emerging Tech Sectors is Needed to Unlock their Full Potential for Economic Growth

In a world increasingly defined by technology, industries such as digital assets, Web3, artificial intelligence (AI), and fintech are no longer just emerging trends — they are vital engines of growth for economies around the globe.

Yet, these high-growth sectors frequently struggle to access the basic support infrastructure they need to thrive, with financial services standing as a prime example.

I have seen it in my own sector, insurance, where a lack of relevant, affordable coverage threatens to stifle innovation. This is an issue that is particularly critical in emerging markets such as the GCC, where economic diversification is top of the national agenda as the countries move away from dependency on hydrocarbons.

The root cause of this predicament is that the level of understanding of these sectors, both among the public and private sector, is too low. If we don’t act now to change that by fostering a deeper knowledge of these industries and building specialized solutions, then we run the risk of curbing growth and failing to capitalize on their economic potential.

Why is There a Lack of Understanding of New Tech Sectors

To answer this question, let’s look at the insurance industry. It’s a business that thrives on predictability. For well-established sectors such as manufacturing, retail, or construction, we have a wealth of historical data that enables us to assess and manage risk with relative certainty.

Yet, the pace of change in digital assets, Web3, and AI means that pool of data is much smaller and, as a result, everything seems less certain. For insurers, this makes underwriting these industries particularly challenging. We don’t like uncertainty.

The unpredictability becomes even more acute when you factor in regulation. In many markets, regulatory uncertainty is a major issue, particularly for AI, Web3, and fintech companies. The legal landscape for these sectors is still developing, and sudden regulatory changes raise fears of unforeseeable liabilities. Another thing insurers don’t like.

So, rather than investing in the right risk assessment frameworks and underwriting models, insurers tend to default to higher premiums or refusals, creating an infrastructure gap that risks deterring investment and, therefore, limiting growth.

It’s a gap we need to fill, not just to support businesses but to accelerate digital transformation across MENA.

Catalysing Innovation Through Knowledge and Expertise

For economies to benefit fully from sectors such as digital assets, Web3, and AI, robust support structures are crucial. For example, having the right insurance encourages startups and entrepreneurs to innovate, expand, and tackle ambitious projects by mitigating financial risk. In these industries, it also plays a vital role in managing the high costs associated with potential failures or issues such as cybersecurity breaches.? So, a lack of relevant insurance products leaves entrepreneurs without sufficient support.

To tackle this challenge, insurance companies need to go beyond traditional models and expand the depth of experience and knowledge within their underwriting teams. Understanding these industries at a granular level is the only way to create policies that assess and price risk accurately, ensuring coverage is both accessible and relevant.

If we can do that then we can bridge the gap for high-growth fields, empowering more businesses to innovate.

Stepping up to the Challenge

At Liva Group, we strive to practice what we preach. That’s why, we have partnered with Relm Insurance MENA to provide tailored risk management solutions for companies in these cutting-edge industries.

Our partnership is designed to address the very challenges I’ve highlighted—by combining Liva’s deep market knowledge with Relm’s expertise in these sectors, we are delivering insurance solutions that evolve with the businesses we support.

Of course, the private sector cannot do it alone, which is why governments and regulators need to ensure the right initiatives are in place to reduce the financial risk, both for the companies and for insurers, encouraging them to enter these sectors and provide the right policies.

Building these support frameworks together will unlock the economic potential of emerging tech sectors, creating jobs, boosting financial inclusion, and enabling economic diversification.