Dr.. Ali Mohamed Al-Khouri: The precautionary measures for Covid 19 have caused unprecedented economic risks, and investing in digital solutions is the way to mitigate its severity

Date: 06 - 07 - 2020

His Excellency Dr. Ali Mohamed Al-Khouri, during his speech at Seamless Saudi Arabia “2020” Conference and Exhibition, that the Covid-19 epidemic has clearly demonstrated its repercussions on different sectors, whether they are related to global health or productivity levels, or job loss, leading to disruption of supply chains and global consumption.

He pointed out that the crisis simply put the world in a bottleneck, and there is nothing with it that can easily bypass the risks associated with this epidemic.

He stressed that some are trying to link and find commonalities with previous crises, such as the financial crisis in 2008 or the Great Depression in the thirties, noting that these comparisons may not be accurate today in a world dominated by globalization, especially since all epidemics throughout history have prompted major transformations in societies. humanity, and highlighted “new normals.”

Al-Khouri stressed: We have nothing but to adapt to the new situations and be prepared for them, as the challenges brought about by the epidemic made the world wait for the unknown, and the business sector is the most affected.

And he added, “Poverty rates are expected to push more than 80 million people into extreme poverty around the world, with the continuation of closure policies, and social distancing measures, which have significantly disrupted supply chain networks, with low consumption, threatening hundreds of millions of companies.” The big and the small.

He pointed out that there is agreement in the international community that the economic recovery will be slower than expected.

And he added, “History confirms that austerity policies will not be able to address the slowing levels of growth or issues related to unemployment and social security. The world has become in a major economic predicament, especially with the historic collapse of oil prices, the volatility of oil markets and the imbalance of global supply and demand chains.”

He pointed out that this field is the subject of study and analysis in the Council of Arab Economic Unity in the League of Arab States to show how these inputs affect the growth of the global economy, and among the results of our studies, is that the current crisis will inevitably accelerate the pace of change towards the new global economic order.

Al-Khouri added: It has become imperative for governments to take digital transformation more seriously, stressing that investors in digital solutions will overcome these unprecedented circumstances to some extent, and maintain some continuity and productivity.

He added that institutions and governments are fully aware of the importance of digital systems, and this has become an urgent necessity today.

He pointed out: We emphasized this need in our strategic initiative at the League of Arab States, “The Arab Vision for the Digital Economy,” which calls for adopting a more comprehensive approach to dealing with current and future challenges.

He added that in the coming years, the world is likely to witness newer, more adaptive business models to enable remote service models.

Before the industrial revolution, he added, the global gross product amounted to nearly $2 trillion, and after the emergence of the industrial revolution, the global gross product grew to $40 trillion in 1993, i.e. it rose to $38 trillion over 120 years, and with the advent of the Internet, the global gross product rose in 2019 to 100 trillion dollars to reach 142 trillion dollars, in less than 27 years, this happened during the occurrence of two world wars, and with the outbreak of many global epidemics and a global depression.

Al-Khouri concluded: The world will witness tremendous growth in GDP in the coming years, and the Fourth Industrial Revolution will not only generate a new economic form, but will also jump in development patterns, and that the Covid-19 epidemic will accelerate the emergence of a new global economic order.

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