Source: Al-Wafd Newspaper
Prof. Dr. Ali Mohammed Al-Khouri
The contemporary world is undergoing major transformations in its economic and intellectual structure. Natural resources and traditional wealth are no longer the sole criteria for sovereignty and progress; rather, knowledge and technology have become the true fuel of a new era known as the “knowledge economy.” This economy is not based on material possessions, but on the ability to innovate and produce knowledge, and to transform ideas into added value and tangible economic and developmental returns. Thus, technology today has become the intellectual and scientific framework that is reshaping the methods of production, interaction, and exchange in a world governed by speed and knowledge.
Technology is defined as the practical application of knowledge and science to create new goods and services or improve existing ones. It encompasses all aspects of digital technologies, artificial intelligence, and modern communications that have made the world more interconnected and faster, and have transformed the way we think, work, and produce.
The knowledge economy, on the other hand, is the environment in which ideas and information are produced, stored, and exchanged with the aim of developing new tools and expanding the fields of innovation. It is the foundation upon which the modern economy is built, where information and knowledge have become more important than material resources themselves.
Between these two concepts lies a complementary and intertwined relationship; technology facilitates the production and dissemination of knowledge at an unprecedented pace, while knowledge fuels technological development, giving it meaning and direction. The more knowledge increases, the more technology develops, and the more technology develops, the greater humanity’s ability to acquire new knowledge and utilize it to improve life and the economy.
In the Arab world, this relationship is still evolving, as technology and knowledge present an opportunity to completely reshape the economic landscape, from its operations and structure to its future direction. Shifting from a resource-based model to one driven by innovation means building a more diversified and sustainable economy. Furthermore, the integration of modern technologies in industry and services contributes to increased productivity and creates an attractive investment environment capable of drawing in global capital. Through digital transformation, new horizons are opening up for Arab entrepreneurship, with startups in the technology and software sectors emerging as engines of development and opportunities to empower young talent.
However, the path towards this transformation is not easy. The Arab economy still faces a wide technological and knowledge gap compared to the developed world, evident in the weakness of the digital infrastructure, the varying levels of internet connectivity between countries, as well as the limited investment in scientific research, which in most cases does not exceed 1% of the gross domestic product.
The Arab world also suffers from a shortage of specialized skills and brain drain abroad, in addition to an almost complete dependence on imported technology and weak legislation regulating the digital economy and data protection, which reduces competitiveness and makes the transformation process slower and more complicated.
To meet these challenges, Arab economies should place scientific research at the heart of their development strategies, reconsider their education systems so that their institutions become platforms for producing creative minds rather than imitators, and rebuild their institutions on modern digital foundations that enable the acceleration of the transition to smart governments and integrated digital economies.
This also requires building Arab collaborative networks in the fields of technology and artificial intelligence, and linking research centers with the private sector, to create a knowledge-based production cycle capable of innovation. The success of this path depends less on the size of financial resources than on the existence of a strategic vision that recognizes knowledge as the cornerstone for building a self-renewing and sustainable growth economy.
The relationship between technology and knowledge is what can give the Arab economy its independent character. Decision-makers and policymakers must understand that the future will not open its doors to those who follow it, but to those who participate in shaping it. Therefore, the issue is not about catching up quickly, but about producing Arab thought capable of directing technology towards goals that reflect the region’s values and aspirations.
