Article: The digital economy

Date: 26 - 07 - 2022

Abu Dhabi

Source: mufakiru Alemarat

Dr.. Ali Mohamed Al Khouri

Economics has always been associated with the human ability to work and produce in general; The economy began historically based on agriculture, pastoralism and the exchange of products, and developed over time with the emergence of large and organized societies; The economy based on trade and the market appeared, currencies appeared with it, and taxes and excises (customs) were imposed in the Middle Ages.

At a later stage, the “feudal economy” appeared, which relied on large property and privileges; Which helped to move to the eras of geographical discoveries, the establishment of large transcontinental companies, and the development of management concepts and methods.

The economy developed in the past two centuries with the advent of the first industrial revolution, the emergence of the steam engine, and the subsequent establishment of factories and large stores, and the establishment of modern states. Development and modernization continued with the launch of the second and third industrial revolutions. Then finally the fourth revolution, which led the world to the digital economy, and made the computer machine and the Internet a way of life.

The digital economy is divided into two main parts:

1. The direct digital economy, which is the product of activities developed and produced for computer and digital devices, software development, sales and maintenance proceeds, and after-sales services; It represents about 20 percent of the digital economy.

2. The indirect digital economy, which is what we get by digitizing traditional methods of production and providing services and economic activities, or the emergence of new activities that operate on the Internet; It represents about 80 percent of the digital economy.

The digital economy with its two sections is considered one of the fastest growing economies in the world if we compare it with other sections of the economy, such as the agricultural, industrial or services economy. According to what was stated in the “Arab Vision for Digital Economy” initiative, launched by the Arab Federation for Digital Economy at the end of 2018 in Abu Dhabi, under the patronage of His Highness the President of the State, may God protect him; Any country that wants to reach good maturity, rapid growth, and full effectiveness in the digital economy will need five pillars:

1. Infrastructure: It means the availability of the components of secure communications networks that connect with reasonable speed and efficiency to all parts of the country, in addition to adequate legislation to work according to the components of the digital economy.

2. Stimulating and supporting creativity and innovation: harnessing knowledge to create a competitive advantage; This can be seen, for example, in the valuation of a startup that starts with an investment of one million dollars in its first year and reaches billions of dollars in a few years.

3. Digital Government: It shows the role of the government in supporting the private sector and the individual digitally, encouraging digital services around the clock, and providing them to every citizen through his mobile phone.

4. Digital business: It is the basis that we seek, and among its most prominent manifestations is e-commerce, and the penetration of digital development into all business sectors such as education, health, agriculture, industry, and others, by taking advantage of the Internet of Things and artificial intelligence.

5. The Digital Citizen: This pillar is concerned with achieving the goal of digital inclusion for the purpose of improving the quality of life, facilitating its conditions, and ensuring the privacy of the individual and its protection by law.

The human being remains the main development tool in the world of the digital economy. It is the source of creativity, innovation and development, and without proper education and access to a good citizen who seeks to develop his country, it will not be enough to import technology to achieve the goals of the digital economy and to succeed in achieving any tangible economic growth.

If we want to succeed and have a solid and sustainable digital economy, we must rehabilitate the knowledgeable person who is capable of acquiring and developing knowledge to serve his nation and state. By employing them optimally, and finding equal job opportunities that suit their specializations.

Today, the countries of the world, especially the advanced ones, are racing to launch initiatives and provide very tempting incentives to attract scientific competencies, especially in the field of digital technology, to migrate and settle there. Unless other countries follow suit, they will remain in a constant inability to build stable and sustainable development systems.