Cairo

Source: Al-Wafd newspaper

Dr. Ali Mohamed Al-Khouri

In recent decades, the world has witnessed an unprecedented digital revolution that has brought about radical transformations in all areas of life. This revolution was not limited to developed countries, but extended to the Arab world, which has become part of this major digital transformation. With the spread of the Internet and smartphones, the Arab region has witnessed rapid transformations towards adopting digital technology, which has had a significant impact on the economic, social and governmental systems.

According to recent statistics until October 2024, the percentage of Internet users in the Arab world reached about 67.5%, bringing the number of users to more than 305 million people. This growth reflects the great transformation that the region has witnessed, but it also raises many questions about how to invest this opportunity to achieve sustainable development, and what challenges must be addressed to ensure a sustainable digital future.

The digital economy is estimated to contribute around 4% of the region’s GDP, with this percentage expected to grow in the coming years as investments in technology and digital infrastructure increase. E-commerce, for example, has seen exceptional growth in recent years, with the sector valued at over $76 billion in the GCC, with this value expected to rise as internet usage and adoption of e-payment solutions increase. In the Middle East and Africa, the market is worth around $135 billion, with expectations of growing to $264 billion by 2029.
Overall, Arab youth, who make up around 75% of the region’s population, are among the biggest beneficiaries of the digital revolution. Digital technologies provide unprecedented opportunities for young people in the areas of entrepreneurship and innovation, and contribute to creating new jobs and stimulating economic growth.

Digital technologies have played a major role in improving government services. Arab countries in general adopt national strategies for digital transformation, which have contributed to developing government performance and providing fast and effective electronic services compared to the past. In the United Arab Emirates, for example, data indicates that the UAE Blockchain Strategy saves the government $3 billion annually.

Despite the great gains that the digital revolution promises, there are many challenges facing the Arab world as a whole. One of the most prominent of these challenges is the digital divide. Although the rate of Internet use in the region is relatively high, two-thirds of the population is still not connected to the network. In some countries, such as Yemen and Syria, political and economic conditions hinder investment in developing and expanding digital infrastructure.

Cybersecurity is another major challenge. With the increasing reliance on digital technologies, personal data has become vulnerable to breaches. The cost of cybercrime globally is estimated at $6 trillion annually, which requires significant investments to protect data and enhance digital security.

The lack of digital skills is an additional barrier. According to a study by Boston Consulting Group (BCG), the lack of digital skills is the biggest challenge to digital transformation in the Middle East. This shortage is hindering the ability of companies and governments to fully leverage digital technologies.

Typical solutions may be the best way to capitalize on the opportunities presented by the digital revolution. The first of these solutions requires investing in developing digital infrastructure to ensure universal access to the internet. Bridging the digital divide must be a priority, with a focus on providing access to technology for marginalized groups and remote areas.
Then, digital education must become a core part of the curriculum. Integrating digital skills such as programming and data analysis into the education system will help prepare a new generation capable of interacting with the demands of the digital economy. It is important for governments to work in partnership with the private sector to provide training programs to develop the skills of the current workforce in the public and private sectors.

Legislation to protect data and enhance cybersecurity is also essential. Arab governments must develop comprehensive laws to protect privacy and ensure data security, and align these laws with international standards to address cyber threats.

On the other hand, innovation and entrepreneurship must be strongly supported. Providing a flexible regulatory environment that encourages investments in start-ups will support the region’s ability to compete in the global digital economy. It is important to focus on supporting projects that combine technology and social development, such as those that aim to improve education or healthcare using digital solutions.

In conclusion, the digital revolution represents more than just an economic opportunity, but rather the means through which Arab societies can be repositioned to become a competitive force in the global digital economy. Achieving this requirement requires developing an understanding of structural factors, a planning process that balances technology and human development, and developing national strategies based on innovation, regional integration, and sustainable development.