Cairo

Dr. Ali Al-Khouri, Chairman of the Arab Federation for Digital Economy, stressed that the world today is experiencing profound transformations, in which digital technologies have become not just a tool, but the beating heart of the modern economy.

This came during his speech at the “Seamless North Africa 2024” conference and exhibition, which was held in Cairo under the patronage and attendance of the Secretary-General of the League of Arab States, Ahmed Aboul Gheit, under the slogan “The Future of Digital Trade across North Africa”, and organized by the Arab Federation for Digital Economy, in partnership with Terrapinn Company for Organizing International Conferences and Exhibitions.

“In 2021, the value of global digital sales reached about $5 trillion, and according to recent statistics, this number is expected to jump to $7.5 trillion next year… while digital sales in 2010 did not exceed $600 billion,” Al-Khoury said, noting that these numbers express a profound change in the nature of the economy, and that this change prompts us to reconsider our concepts and look at the future with a different lens, where there is no place for tradition.

Regarding our Arab region, Dr. Al-Khoury explained that expectations indicate that the value of digital trade in the Arab world is likely to reach $50 billion by 2025… up from $2 or $5 billion in 2010. He wondered whether we have the ability and real desire to exploit these opportunities? Do we have the courage to take these numbers to new levels?

Al-Khouri said: “The world we live in today is characterised by complexity and turmoil. Wars, epidemics, and geopolitical tensions are all factors that have greatly affected the stability of the global economy, the balance of international trade, and have revealed the fragility of global supply chains, to the point of questioning the continuity of the idea of ​​a single global village… and even raising serious questions… about the ability of national systems to face the challenges of future globalisation… with the rise of protectionist policies and trade restrictions.”

He added: “We stand at a crossroads, as we have limited options. We either continue with the current patterns, or adopt a new vision… a vision based on Arab integration and harnessing modern technology to build a strong and sustainable economy.”

He stressed that the next generation of digital commerce will not be a mere extension of current developments, but will bring qualitative transformations that will completely reshape the rules of the game. Artificial intelligence, blockchain, digital payments and especially digital currencies that we see today taking their path towards regulation, will radically change the way our systems and environments interact, and with each other.

He also explained that global transformations call for preparing for the fifth generation of e-commerce, the revolutionary difference that artificial intelligence will make in the markets, and the algorithms that will enable immediate integration between databases and government and private services, which will make logistical and financial operations smoother and more compliant with legal standards and transparency.

He pointed out that according to the perspective of the Center for Learning and Future Studies at the Arab Federation for Digital Economy, planning to support e-commerce in the Arab world requires reconsideration in a manner consistent with reality and the requirements of the digital age, with a general structure based on three main levels.

• The first level represents the axis of international trade between companies and requires focusing on legislation and laws that facilitate trade exchange operations between Arab countries, and helps build an integrated regional market.

• The second level is related to the development of local trade between companies within countries and focuses on the use of technology to enhance competitiveness and innovation in local markets.

• The third level is related to direct trade with consumers and requires improving infrastructure and logistics, and regulating modern technologies with a focus on supporting small and medium-sized enterprises due to their connection to employment opportunities.

Al-Khouri called on Arab policymakers, saying: It is important to work on reimagining e-commerce as a fundamental pillar of the future of the economy in the region. The strategic focus must be on creating an integrated, AI-driven ecosystem that is flexible, inclusive and innovative… This will enable the Arab world to keep up with global trends, and even determine its path in the digital economy, and give it a foothold in the new global economy, stressing that success in the new future requires from policymakers and makers a visionary approach that does not only adapt to challenges and opportunities, but is proactive.

Video of the speech of His Excellency the Chairman of the Board of Directors of the Arab Federation for Digital Economy at the Seamless North Africa 2024 Conference