The Power of the Creative Economy: A Pathway to Growth and Global Influence
By Deborah Lehr
December 11, 2024
Gayane Umerova Speaking at the World Conference on Creative Economy 2024 in Uzbekistan. Source: IV World Conference on Creative Economy 2024
Your Talking Points
Investing in the creative economy stimulates economic growth and job creation, offering a sustainable alternative to traditional industries.
Uzbekistan and the Kingdom of Saudi Arabia are examples of how countries can leverage their unique heritage to diversify their economies, foster sustainable development, and ignite creativity.
Embracing the creative economy brings economic benefits but also promotes national identity, nurtures new generations of artisans and supports development of a more open and dynamic societies.
What Happened
As the global economy evolves and industries become increasingly knowledge-driven, nations are looking toward new sources of growth beyond traditional sectors. One of the most promising and fastest growing of these is the creative economy—a diverse sector encompassing arts, media, design, fashion, technology, and cultural industries.
According to UNESCO, the creative and cultural sectors contribute $4.3 trillion to global GDP, and generate 50 million jobs worldwide, almost half of which are held by women. These industries are expected to account for 10% of global GDP by 2030.
With such staggering potential, countries with a deep history and unique heritage are tapping into their creative economy as a strategic tool for economic diversification, job creation, and international influence.
Digging Deeper
The Economic and Social Benefits of the Creative Economy
Investing in the creative economy brings tangible economic rewards. According to the UNCTAD 2024 Creative Economy Outlook, creative services are fueling economic growth, reaching an astonishing $1.4 trillion in 2022 -- a 29% increase since 2017.
Exports of creative goods also achieved a 19% increase over the same period, reaching $713 billion.
The growth potential of the creative sector is increasingly rivaling that of traditional industries and manufacturing, such as telecommunications and automotive, and is increasingly important for countries seeking sustainable growth in a new era of digital and technological transformation.
Beyond economic gains, the creative economy is an important source of job creation, particularly for youth, women, and underrepresented communities.
In many emerging economies, where youth unemployment is a pressing issue, creative industries provide opportunities for meaningful work that aligns with the aspirations, creativity and skills of younger generations. Digital platforms, for instance, empower digitally savvy artists and entrepreneurs in emerging markets to reach new international audiences and become active participants in the global marketplace.
Moreover, a thriving creative economy enhances a country's global standing. Cultural exports—whether in the form of film, music, fashion, or art—serve as ambassadors of a nation’s identity, building cross-cultural understanding and mutual appreciation. This kind of soft power is invaluable in an increasingly interconnected world, where a nation's cultural footprint can be as significant as its economic or political influence.
We have worked with two countries – Uzbekistan and the Kingdom of Saudi Arabia – and have witnessed first-hand the potential of the creative economy.
Photos from left to right: Vibrant Culture of Saudi Arabian Art, Source: Harvard Business Review; Uzbek Handcrafts, Source: Advantour; Diriyah Square, Source: Arabian Business; Gayane Umerova Speaking at the Ministerial Meeting at WCCE 2024, Source: IV World Conference on Creative Economy 2024; AlUla’s Elephant Rock, Source: Travel + Leisure; Saudia Arabian Arts and Crafts at the Turathna Exhibition Source: Arab News; Ceramic Arts in Uzbekistan, Source: UNESCO.
Uzbekistan: Cultivating Cultural Heritage for Economic Diversification
Uzbekistan Tapestry Making. Source: Wanderlust Magazine
Uzbekistan, a country known for its rich history along the Silk Road, is harnessing its cultural assets to foster the development of its creative economy. Recently, the country hosted the Fourth World Conference on Creative Economy, a United Nations conference dedicated to exploring the potential of creative industries as a vehicle for sustainable and inclusive growth. This event was not just symbolic; it was a deliberate step in positioning Uzbekistan as a cultural and economic leader in Central Asia.
As part of Uzbekistan’s strategy to develop its creative economy, the government recently launched a dedicated policy framework to support its creative industries, which spans 17 different sectors. Preserving Uzbekistan’s vibrant cultural heritage, including traditional crafts, textiles, music, archaeology and dance—which are core to the nation’s identity—and transforming it into an economic asset is an integral part of the strategy. For instance, the government has supported the revival of traditional crafts such as ceramics and silk production, by creating infrastructure to train the next generation and enabling artisans to find new international audiences. The tourism industry, buoyed by Uzbekistan’s cultural appeal, also stands to benefit, as visitors are drawn to the country’s unique blend of history and artistry.
The creative economy is also a means to diversify its economy beyond resource extraction and agriculture toward future growth sectors driven by digitalization and technology.
In a nation where over 60% of the population is under the age of 30, the creative technology space, including gaming, software and AI, provides a wealth of new job opportunities.
With new tech and creative hubs, Uzbekistan is creating a nurturing environment for entrepreneurs and creators, empowering its young population and developing a new generation of artists, designers, and cultural innovators.
Saudi Arabia: Vision 2030 and the Cultural Renaissance
Saudi Arabia’s Vision 2030, an ambitious framework to reduce the Kingdom’s dependence on oil, places the creative economy a focal point of its economic transformation. With initiatives like the Red Sea International Film Festival and the development of the Royal Commission for AlUla’s cultural and artistic sites, Saudi Arabia is working to build a vibrant cultural sector that attracts international attention while creating jobs for the local community.
Saudi Arabian Art Scene. Source: Scene Traveller
The scale of Saudi Arabia’s investment in cultural projects is unparalleled in the region. A prime example is the development of AlUla—a historic site that combines natural beauty with archaeological significance—which is estimated to create 38,000 jobs and attract 2 million visitors annually by 2035. This project alone demonstrates how the creative economy can be a significant driver of employment and revenue generation.
Beyond individual projects, Saudi Arabia is fostering a creative ecosystem that includes arts education, grants for local artists, and partnerships with global cultural institutions. The Red Sea Film Festival, for instance, brings together filmmakers from around the world, positioning Saudi Arabia as a hub for film and media in the Middle East. By encouraging creative expression and promoting cultural exports, Saudi Arabia is signaling a commitment to a more open and culturally dynamic society
The Kingdom is investing in infrastructure and initiatives to support future generations of artists, designers, and cultural innovators, ensuring that creative economy remains a pillar of its sustainable growth strategy. Through these efforts, Saudi Arabia is trying to establish a legacy that merges tradition with modernity and position itself as a leader in the global creative economy.
AlUla’s Old Town. Source: List Magazine
Lessons Learned and Opportunities Ahead
Uzbekistan and Saudi Arabia’s experiences offer valuable insights for other countries considering the development of their creative economy. First, a clear and well-funded national strategy and policy framework is essential. Both countries have demonstrated that meaningful support from their leadership —from hosting conferences to establishing world-class festivals—can attract international interest and catalyze growth in creative industries.
Second, the creative economy thrives on talent and innovation, which means investing in education and infrastructure is key. Saudi Arabia’s initiatives in arts education and Uzbekistan’s efforts to train the next generation of traditional artisans highlight how skills development and cultural preservation go hand-in-hand with building a resilient creative sector.
Lastly, the creative economy can serve as a powerful tool for soft power. By sharing their cultural narratives with the world, Uzbekistan and Saudi Arabia are enhancing international recognition of their unique cultural identities and challenging stereotypes. With greater awareness and understanding, these types of initiatives also build a nations’ appeal as a tourist destination, and with the export of the output of their creative economy – from touring exhibitions of their historic artifacts to fashion based on traditional handicrafts methods – showcase their history to a broader audience.
As we look to the future, the creative economy will play an increasingly important role in global economic dynamics.
Uzbekistan and Saudi Arabia’s investments in culture and creativity are more than economic policies; they are declarations of national ambition and identity.
By harnessing the power of the creative economy, these nations are creating jobs, generating growth, and positioning themselves as influential players in this space on the world stage.
Diriyah Square. Source: Vougue
For countries seeking to diversify their economies, engage their youth, and make their mark globally, the creative economy offers a compelling blueprint. As Uzbekistan and Saudi Arabia have shown, with vision, investment, and a commitment to cultural authenticity, the creative economy can be a transformative force—economically, socially, and diplomatically.
Published by Basilinna Institute. All rights reserved.
