![]() The Development of the Digital Economy in the Middle East The number of bank branches in the country fell by 34% between 20, coinciding with the launch of several digital banks, such as Liv., E20., NEO, NEOBiz, and CBD Now. 7 A similar digital trend has been seen in the UAE banking sector as well. Government-to-consumer interactions in the country are now predominantly digital, and there are plans in place to close half of existing government service centers in the next two years. ![]() The UAE, for example, has significantly focused on digital governance in the last decade and made several strategic investments. Today, digital business models are dominant in key sectors in the Middle East. 6ĭigital Business: The changing characteristics of consumers have also changed the nature of businesses in the region. 5 With respect to the prevalence of digital skills among the population, GCC countries are ranked on a par with major global players such as Hong Kong, Germany, South Korea, and Ireland. In the UAE, 80% of digital payments are already contactless. 3 Mobile broadband penetration in GCC countries has already reached 100%, 4 and more than 50% of consumers in the region shop online. For example, mobile infrastructure investments in the broader Middle East and North Africa (MENA) region are estimated to total US$70 billion over the 2019–25 period. 2 This large proportion of young people, combined with large-scale infrastructure developments currently underway in the region, has made the Middle East one of the fastest global adopters of digital technologies. Approximately 75% of the region's population is under the age of 40, a figure that's much higher than the world average of 63%. The Digital Consumer: The Middle East has a young, tech-savvy population. And there are already some good examples that show the extent of digitalization in the region and the evolution of the digital economy. ![]() Consequently, digitalization is a vital component of national visions and development plans across the region. The Middle East has made significant progress in the adoption of digital technologies over the last decade. 1 Today, every GCC country has a similar national vision that focuses on developing non-oil sectors for economic growth, local value and employment creation, and social development.ĭigitalization as a Cornerstone of National Development For example, Saudi Arabia - the biggest economy in the Gulf region and the world's largest oil exporter - is aiming to increase its share of non-oil Gross Domestic Product (GDP) from 16% in 2016 to 50% by 2030. These diversification efforts have intensified and became widespread throughout the Middle East in the last decade, especially across Gulf Cooperation Council (GCC) countries. At the turn of the century, countries such as the UAE, Qatar, and Bahrain initiated diversification efforts to develop their financial sectors and establish knowledge-based economies. However, this reliance has tapered off in the last two decades, coinciding with a fall in oil prices and the rise of digital technologies. The Middle East economy has traditionally been dependent on oil and gas resources, driving economic and national prosperity. ![]() The Rise of the Digital Economy in the Middle East Many countries in the Middle East are also moving in the same direction, increasing their focus on the digital economy and introducing strategic initiatives to enhance digitalization. Nations such as China, Australia, Singapore, Malaysia, and Ireland have not only made the digital economy a cornerstone of their future national development, but also introduced various digital-specific strategies to achieve this end. Today, the digital economy is at the forefront of the national development plans of many countries across the world.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |