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Digital Technology and Its Role in Achieving Industrial Growth in Arab Countries

Introduction

Digital technology has become a driving force of change in the modern world where industries are reshaped, societies are determined by it, and life is transformed thanks to it. Arab states have likewise ventured into the digital transformation path by leveraging technology to promote economic growth, social welfare, and sustainability. The digital transformation journey of Arab nations is quite a difficult undertaking that involves lots of progress, challenges and emerging prospects. The Arab countries can realize the transformative power of technology if they address the persistent digital divide, bridge the skills gap, and promote a thriving economic policy.

Arab countries’ experience in the field of digital technology

As the world moves towards the 2030 sustainable development agenda, it is clear that the Arabian side of countries is also moving faster and having a favorable trend in realizing this objective. From the Arab Development Portal statistical data, about 51.6 percent of the population could use the internet, with wide variation between different Arab countries, while 30 percent of the population is offline. On the other hand, there has been a significant digital transformation in the Arabic nation this past decade. Digital connectivity has exploded in this demography by the high percentage of online audiences, from 28.% % to 70 %. This means that the population using the internet in this region is more than 350 million people. The pace for digital conversion has spiked during and after the COVID-19 outbreak, leaving no doubt that there is an increasing drive toward digitization (Al et al., 2022). The states in the region have quickly embraced digital technologies as necessary, which has necessitated huge tracts of change in social dynamics and institutional frameworks, among others. Although there is this level of progress, about 30 percent of the population in that region has yet to be able to access digital resources. Ultimately, this will lead to policy reform, research and development efforts, and pushes for digital literacy and inclusion. This collaborative approach seeks to address current exclusions and ensure that no one is left out to bridge the digital divide to promote optimum access for all.

Arab nations have invested in digital infrastructure to support the widespread use of digital technologies and increase broadband internet accessibility. Countries like the United Arab Emirates and Qatar have been at the forefront of this work, becoming regional leaders in broadband connectivity. Providing fiber-optic networks and mobile coverage are the proactive actions that they take. These strategic investments form the foundation upon which the establishment of a robust digital economy is built. With this in place, businesses can use technology for increased innovation and competitiveness. As a result, these initiatives have promoted economic diversification and made Arab countries formidable players in the digital world.

For instance, the contemporary digital environment in the current era has left traditional postal services irrelevant since they look archaic. Nonetheless, Egypt has proved this concept wrong through an active partnership between UNDP and Egypt Post – a massive journey towards modernization and growth. As of 2005, this collaboration has epitomized innovation and inclusivity, demonstrating how it can transform future public services. In partnership with Egypt Post, UNDP in Egypt started an innovative project to convert and upgrade 2848 post offices, including the museum. These rehabilitated structures now have world-class amenities that address the needs of a modern society. This cooperation highlights the power of collaborative innovation. The commitment of Egypt Post has led to its place as a pillar for effective public services and e-government projects, which have won it recognition globally.

In addition, the editor of “Bilan,” Somalia’s first all-female newsroom, set up nearly a year ago with UNDP support, Fathi Mohamed Ahmed, has been prominent in boosting women. Under her leadership, Fathi and the team have shown that women can perform well in international journalism, as several articles published by renowned outlets such as the Guardian, BBC, and El Pais received massive recognition from both local and global populace. By leveraging digital tools and cutting-edge technology, Bilan’s journalists have become more confident in their work (Al et al., 2022). Thanks to Media Bilan’s training, they have become skilled at using different digital media devices, such as computers with a vast range of advanced software, smartphones, and Mac computers for filming and editing interviews. It has helped them to produce quality, significant and original journalism in different media like TV and radio, among other platforms, reaching both the people around Somalia and international organizations.

The eMonitor+ by UNDP is a set of cutting-edge digital tools that use artificial intelligence to improve the provision of reliable information and reduce harm from negative content. These machine learning models within eMonitor+ are employed for the analysis and mapping of digital trends in relation to topics such as misinformation, hate speech, and online violence against women and other marginalized groups. Additionally, it offers a secure space for the collaborative fact-checking process, allowing national partners to participate. Be it in Lebanon or Libya, Tunisia and other Arab countries the eMonitor+ is deployed to support governance and election processes by engaging key stakeholders including governments, media houses and civil society organizations.

In addition, the platform perfectly illustrates South-South cooperation that has gone beyond other regions, such as Mozambique and Peru, contributing quantitatively to the genuineness of global information. In the context of the high-level side event proposed by UNDP during its 78th Session at the UN General Assembly together with the Government of Bahrain, the “Digital for Sustainable Development” (D4SD) Partnership was initiated. This initiative is a progressive move that seeks to advance digital transformation across the Arab States region. Founding partners of this drive, including the Digital Cooperation Organization (DCO), Economic and Social Commission for Western Asia (ESA ), Global System for Mobile Communication Association GSMA, Islamic Development Bank IsDB and International Telecommunications Union ITU issued a call to action whereby they unequivocally committed themselves to achieve digitalization to attain sustainability goals.

Initiatives In the Field of Digital Technology Development

Given the fast pace of digital technology evolution, Arab countries are beginning to appreciate how innovation can stimulate economic growth through an improved system of governance that produces a healthy nation. The significance of digital technology development among Arab nations is explored in this article, focusing on the major initiatives, strategies, campaigns and partnerships that enhance innovation and Digital transformation. In the modern age of digitalization and networks, broadband is considered a source of life for economic growth, social progress, and sustainable development. Arab nations have come to appreciate the revolutionary nature of broadband infrastructure and are getting into massively grand schemes aimed at widening their digital networks. Such initiatives have greatly improved the connectivity and availability of consistent quality internet opportunities that pave the way for a vibrant digital market. A backbone of the current broadband infrastructure is fiber-optic cables, which allow for high transmission speed. Arab countries have invested a lot in laying out fiber-optic cables and connecting most major towns and cities across the region (Al et al., 2022). This has increased internet coverage to marginalized communities and allows high-speed Internet access through which various applications and services are supported.

Furthermore, the technological advancements in mobile networks, such as 4G and 5G, have changed how people access the internet on their move (Cusolito et al., 2022). Such technologies are used worldwide, including in Arab countries where 4G and 5G networks were introduced throughout their territories. This has allowed individuals to access the internet anytime from any location, thus promoting significant digital inclusion and facilitating new ways of mobile trade and e-services. To conclude, data centers are the core of digital living as they store and process large amounts of information. Arab nations have invested greatly in constructing new, state-of-the-art data centers to support the demand for cloud-based programs and storage services. This has improved the capability of withstanding stress and flexibility in digital infrastructure by allowing businesses to keep their data safe even under difficult conditions. This program has had a significant effect in changing the digital environment of Arab nations. For instance, internet penetration has increased considerably, reaching more people, especially in rural areas. Furthermore, broadband connections lead to the advancement and popularity of e-government services, e-commerce portals and online learning programs. Finally, the advent of high-speed internet has stimulated innovation and entrepreneurship, ensuring new ventures for companies or individuals.

Digital Skills and Education:

The issue of creating a skilled workforce that can foster digital development is one crucial problem for Arab countries. Various educational reforms and projects aimed at digital literacy development and STEM (Science et al.) education advancement were adopted. The Digital Transformation Strategy of Saudi Arabia encompasses activities aimed at integrating digital skills training into education in order to promote lifelong learning, enabling one’s adaptation to technological advancements. Similarly, programs like the Qatar Digital Library and UAE’s Mohammed bin Rashid Al Maktoum Foundation target up-skilling citizens with digital skills while offering lifelong learning opportunities (Impact of Fourth Industrial Revolution on Development in the Arab Region). In order to support budding startups, attract external investment, and facilitate cooperation between the academic sector, industry, and policymakers, building powerful innovation ecosystems is a vital task. Some initiatives launched by Arab countries include innovation hubs, incubators and accelerators. Programmes are there to foster inspiration for entrepreneurs. For instance, the Bahrain FinTech Bay provides a co-creative environment uniting fintech startups, financial institutions and regulatory authorities to promote innovation within the financial industry. The likes of Egypt’s Technology Innovation and Entrepreneurship Center (TIEC) offer support as well as funding to startups. At the same time, King Abdullah II Fund for Development (KAFD) is a similar initiative from Jordan.

Cybersecurity and Data Privacy:

With cyber transformation gaining momentum, security and data privacy issues among Arab nations have increased tremendously. Governments are writing laws and setting enforcement frameworks that protect digital infrastructure and safeguard individual data. For instance, the UAE’s cybersecurity strategy aims to develop cybersecurity competencies, understand and eliminate threats through educational activities in society, and strengthen partnerships with international entities. Also included in this regard are Saudi NCA and Q-CERT initiatives from Qatar that promote cybersecurity resilience awareness as well as the protection of digital assets.

Developing dynamic innovation ecosystems is essential for supporting startups, drawing investments and promoting collective effort among academia, industry and the government. However, most Arab countries have activated innovation hubs, incubators, and accelerators targeted at young entrepreneurs to advance a culture of innovation. For instance, the Bahrain FinTech Bay is a collaborative platform dedicated to fintech startups working with financial institutions and regulating bodies supporting innovation in finance. Equally, efforts like the Technology Innovation and Entrepreneurship Center TIEC) in Egypt and the King Abdullah II Fund for Development KAFD5)) in Jordan support and finance startups by entrepreneurs.

To create social enterprises, nonprofit organizations, and other solutions for sustainable development that benefit young women and men alike through UNDP’s Youth Leadership Programme (YLP. YLP promotes a vibrant youth network directed towards innovation and sustainable development. The sixth Youth Leadership Programme (YLP6) in Yemen, with limited awareness regarding autism and unreliable data, UNDP Yemen introduced “Taif,” a project that enables early diagnosis of autism spectrum disorder. In his twenties, twenty-seven-year-old Yemeni innovator and founder Hamas Abouhatem created “Taif,” an Android mobile app that enables mothers with the knowledge to deal appropriately with ASD in children through early diagnosis.

Impact of 4th Industrial Revolution

The fourth industrial revolution (4IR) refers to an epochal transformation propelled by the merger of digital, physical and biological technologies, changing how we live to work life together. It is based on the developments of earlier industrial revolutions but is unprecedented in its speed, size and scope of technological innovation. The primary forces driving the 4IR are various technological innovations, including breakthroughs in AI, robotics, IoT, nanotechnology, biotech, and quantum computing. Digitization of industries and processes is the centerpiece of the Fourth Industrial Revolution, through which technology can be easily integrated into every part of society. This digital transformation touches on all other sections, such as manufacturing, health care and finance sectors. Traditional industries are being transformed by automation and AI-driven technologies that improve efficiency, productivity, and the creation of customized outcomes while challenging traditional employment systems as well as skill banks.

Including how industries were changed, the Fourth Industrial Revolution redefines governance ethics and social relations. It poses difficult ethical questions related to the privacy of information, data ownership and algorithmic bias, requiring new kinds of frameworks as well as ethics. In addition, the 4IR works to erase borders between real and virtual worlds, opening up new grounds of social integration as well as modes of communication traditions that we are accustomed to have changed. However, The Fourth Industrial Revolution presents opportunities and challenges within Arab countries (Al et al., 2022). This approach to economic diversification has been adopted by governments and businesses across the region to embrace digital transformation to promote sustainable development competitiveness among nations through technological advancements. Strategies like Saudi Arabia’s Vision 2030 and the UAE’s National Innovation Strategy use advanced technologies of this new era to build knowledge-based economies and innovation ecosystems for once.

Some of the sectors that can be considered key in terms of the Fourth Industrial Revolution’s impact on Arabic countries are Smart cities. Nations such as the UAE and Saudi Arabia are capital-intensive in creating smart infrastructure, establishing IoT sensors, leveraging data analytics for urban planning management, and resource allocation processes following citizens’ services. These attempts not only improve the quality of life for the residents but also help achieve sustainable development goals like energy efficiency and a safe environment.

Beyond this, the Fourth Industrial Revolution has further led to innovation and entrepreneurship in Arab nations, especially for young people. Cities like Dubai, Riyadh and Cairo have a growing startup ecosystem driven by technology, with sectors like e-commerce, FinTech and healthcare taking center stage. At the government level, entrepreneurial activities are supported by funding schemes, incubators, and accelerators that help build an innovation climate that fuels economic growth in a country. Nevertheless, the Fourth Industrial Revolution also presented Arab countries with various challenges, such as intensifying existing social injustices or automating conventional work systems. However, this is only sometimes the case, and several governments fail to invest in education and skills development for their citizens to adapt well to the digital economy (Al et al., 2022). In addition, steps taken to address challenges like missing digital infrastructure gaps, data privacy issues, and enabling regulations are crucial for maximizing 4IR while minimizing its risks.

References

Impact of the fourth industrial revolution on development in the Arab Region. United Nations Economic and Social Commission for Western Asia. (2019). https://www.unescwa.org/publications/impact-fourth-industrial-revolution-development-arab-region

Cusolito, A. P., Gévaudan, C., Lederman, D., & Wood, C. (2022). The upside of digital for the Middle East and North Africa: how digital technology adoption can accelerate growth and create jobs. World Bank Publications.

Al-sheik, H. E., & Al Serhan, F. A. (2022). Role of digital media in achieving Sustainable Development in the Arab World. Saudi J. Humanities Soc Sci7(5), 177-187.

 

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