During his participation in the “Seamless Saudi Arabia” activities – Dr. Ali Muhammad Al-Khoury: The “Corona” crisis will accelerate the emergence of a new global economic system based on digitization

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Date: 09 - 07 - 2020

Global GDP has increased by 255% over the 27 years since the emergence of the Internet in 1993, which necessitates the role of the digital economy in achieving the economic and social goals of governments

Explained His Excellency Dr. Ali Muhammad Al-Khoury, Advisor to the Council of Arab Economic Unity in the League of Arab States, and President of the Arab Union for the Digital Economy, that the “Corona” epidemic crisis will accelerate the emergence of a new global economic system that depends on digitization in its operation.

This came during his participation in the activities of the Seamless Saudi Symposium, and stressed that governments around the world are likely to pay more attention to digital transformation as a critical tool to reach competitiveness and social and economic goals, adding that economies that operate with traditional systems will not be able to survive and continue for a long time in This rapidly changing world is shifting towards deepening digitization practices.

He also pointed out the need to deal with issues related to unemployment and economic growth with a more innovative, continuous and results-oriented mindset, which requires governments to redefine their roles, while adopting more dynamic and flexible strategies, structures and systems, in terms of focusing on diversifying the economy, and raising productivity levels, leveraging the potential of advanced technologies to transform vital sectors such as health, education, retail, trade and large economic industries.

He touched on Dr. Al-Khoury pointed to the impact of some technological features on the global economy by comparing the impact of the Internet with the industrial revolution, as he indicated that the size of the global GDP after the industrial revolution rose from about 2 trillion dollars to 38 trillion dollars over about 120 years, to reach 40 trillion dollars by the end of 1993. And since the advent of the Internet, the global economy has grown by about 102 trillion dollars to reach 142 trillion dollars by the end of 2019, in less than 27 years, with a growth rate of 255%.

He stressed that these indicators necessitate making digitization a main goal for governments during the coming period, to achieve their economic and social goals.

He also explained that with the spread of the Covid-19 epidemic and high unemployment rates to high levels, and the increase in extreme poverty rates around the world for more than 80 million people, it has become essential for governments to pay serious attention to digital transformation, as closures and social distancing measures have proven that the systems managed Traditionally, it is more vulnerable to the current crisis, while those who invested in digital solutions were able to deal with these unprecedented conditions and maintain some levels of continuity and productivity, to prove in practice that the digital economy has become an urgent necessity and not just an aspiration.

His Excellency added: “When reading the numbers, recent studies indicate that the potential losses to the global economy from this epidemic – over 5 years – may range from about 3 trillion dollars in the case of a quick recovery to more than 80 trillion dollars in the event of a long recovery scenario. The term according to the latest international study.

Dr. stressed. Al-Khoury stressed that the Arab vision for the digital economy, launched by the League of Arab States in coordination with its Council of Economic Unity at the end of 2018 in Abu Dhabi, is working to spread the digital economy approach in the countries of the region, reducing the impact of current and future challenges, while developing a more comprehensive regional ecosystem and innovation that enhances creativity and accelerates the pace of digital transformation.

It is worth noting that the virtual symposium “Seamless Saudi Arabia” recently concluded in Riyadh, highlighting the most important developments and challenges in the field of electronic payments in the Middle East, in the presence of a group of experts and decision-makers in the field of digital payments and e-commerce.

The symposium, which was held between July 7 and 9, 2020, discussed many topics related to e-commerce, the most important innovations supporting the digital infrastructure of the payments sector, the most important solutions provided by digital means of exchange, mechanisms for moving towards a cashless society, integrating digital infrastructure, and legislation And regulations, as the symposium acquires special importance in light of the contribution of electronic payments to enabling members of society to meet its purchasing needs during the “Corona” pandemic period, by taking advantage of the latest financial payment technologies and electronic commercial platforms.