DUBAI, UAE — As a means of diversifying their economies and weaning themselves off oil earnings, GCC countries are making strides in the digital economy. As a result, 2023 is predicted to be a turning point for e-commerce in MENA.
RedSeer Strategy Consulting, a digital consulting firm, projects that the region’s digital economy will grow from around US$100 billion in 2022 to US$500 billion in 2030.
The new motives of the digital economy will be business-to-business, financial, healthcare, and educational technologies. The survey also predicted that non-Gulf countries’ contributions to the digital economy in the MENA will increase to more than 35 percent during this time.
E-Performance index
GCC countries have made remarkable progress in digital transformation, which was reflected in their outstanding performance in five major global indicators, according to the “GCC Digital Performance Index 2022” report issued by Orient Planet Research, the independent unit of the Orient Planet Group.
The report is in collaboration with independent researcher Abdul Qadir Al Kamili, an information and communication technology expert.
The UAE achieved the highest level of growth, with an average of 66.22, followed by Saudi Arabia (59.26) and Qatar (57.63). Averages of 54.02 for Oman, 53.43 for Bahrain, and 51.36 for Kuwait were also attained, according to the report.
Future digital expectations
The report highlighted the high spending rates by the GCC states on modern technological solutions as part of their efforts to build economies based on digital innovations.
Recent statistics indicated that the UAE’s spending on information and communication technology is expected to reach US$23 billion, compared to US$9 billion in Qatar and US$10.1 billion in Kuwait by 2024.
Due to its importance in fostering the digital economy, raising productivity levels, and providing efficient channels for direct access to e-government services, the GCC countries have prioritized the development of the communications and information technology sector in line with their development objectives.
Spending in Bahrain is projected to increase from 2019’s US$1.4 billion to 2024’s US$2.1 billion, an increase of 8.6 percent on an average year. Public sector spending in the Kingdom is expected to exceed US$3 billion by the end of 2022, according to a separate analysis from the International Data Corporation.
As a critical component of the fourth industrial revolution and a crucial factor in maximizing the opportunities it presents and facing its challenges, GCC countries were eager to advance in the digital transformation process. Accordingly, they gave it particular importance in their economic and social development plans.
For example, the UAE, Saudi Arabia, and Kuwait launched high-quality digital initiatives as part of their Vision 2030 plans. The most notable of which was “Expo 2020 Dubai,” the first global exhibition and the largest regional event to use the multi-cloud methodology in its infrastructure, with Services “1C Etisalat” and “Amazon Web Services” providing the backbone. According to their standing in various worldwide indices, the Gulf Cooperation Council member states are ranked on the “Digital Performance Index in the Arabian Gulf” over a wide range of development indicators. Sectors of the healthcare industry, technology industry, food service industry, airline industry, and school system.