The Middle East has realised only eight per cent of its overall digital potential, compared with 15pc in Western Europe and 18pc in the US, a top Bahrain government official has said.
According to Information and eGovernment Authority (iGA) chief executive Mohammed Ali Al Qaed there is a lot of room for digital growth in the Middle East and North Africa (Mena) region, where just 8pc of small and medium enterprises (SMEs) have an Internet presence, 10 times less than in the US.
“Only 1.5pc of retail sales in Mena are online, which is five times less than the US. Digital comprises 4.1pc of the Middle East economy and its contribution to GDP is half that of the US,” he said.
The official was speaking during the BBK Digital Economy Forum and Expo 2020 at the Four Seasons Hotel Bahrain Bay.
Highlighting the Bahrain government’s vision for digital transformation, Mr Al Qaed said the kingdom’s internationally acknowledged successes in attracting investment to its information and communications technology (ICT) industry is built on the back of robust legislation and infrastructure that it has spent years building.
This landscape has allowed for the application of modern technologies in a range of areas and for the development of skills required to implement them.
“Dynamic, competitive markets and an innovative private sector are what drive digital economies,” he said.
“Our goal is for the private sector to take the lead in researching and developing emerging technologies; identifying and supplying innovative solutions; and creating opportunities to improve export revenues. We also welcome their contributions in helping us create even more digital-friendly economic policies.”
The drive to digitalisation is led by the vision of His Majesty King Hamad to make ICT investment a pillar for socioeconomic growth in the kingdom.
The official asserted that the government has helped to encourage innovation and stimulate economic growth through the formation of an artificial intelligence (AI) and emerging technologies governance committee and the passing of laws protecting personal data and electronic transactions.
This is in addition to providing an open data portal and formulating a comprehensive AI strategy in 2020 to enhance government performance and productivity.
Highlighting the importance of digital tools in improving living standards, fighting poverty, protecting the environment, and enhancing the quality of health and education, he said digitalisation also has a key role in creating job opportunities, as each digital job can potentially have the trickle-down effect of creating two to four further jobs in other areas.
Mr Al Qaed also presented key findings from the United Nations Digital Economy Report, which showed that the digital economy now makes up between 4.5pc and 15.5pc of the gross world product (GWP).
The report also found that the US and China contribute 75pc of all patents related to blockchain technology, 50pc of the world’s expenditure on the Internet of Things (IoT), and more than 75pc of the world market’s public cloud computing.