Page 108 - SAMENA Trends - July-August 2022

ARTICLE SAMENA TRENDS

are engaging with Financial Technology economic growth and urbanization have in the country has already fallen, by 34%
(FinTech) pioneers to enhance services created economic divides within national between 2016 and 2020, coinciding with
and innovate rapidly within the financial boundaries. However, the rise of the digital the launch of several digital banks, such as
services industry. economy has revitalized efforts to bridge Liv., E20., NEO, NEOBiz, and CBD Now.
the gap. For example, Huawei's TECH4ALL
The Importance of the Digital Economy in digital inclusion initiative aims to improve Today, every GCC country has a national
the Post-Pandemic World levels of education, environmental vision focusing on the development of
Today, the impact of digital is visible protection, and healthcare, as well as non-oil sectors for economic growth,
everywhere, from accessing essential promote more balanced development, local value and employment creation, and
services and purchasing products through through clear actions: making digital social development. National leaders have
digital platforms, to the shift to virtual technologies more affordable, improving recognized the importance of the digital
methods of learning and working. The wider society's digital skillset, and economy in achieving such visions. For
digital economy is of particular importance creating digital ecosystems that help example, Saudi Arabia has launched a
to national leadership because of its impact developers build applications for different Digital Economy Policy that aims to have
in three key areas. communities. the digital economy's GDP share on par
with other leading global economies. A
Economic Growth: As we've already The Implications for the Middle East little further east, the UAE plans to double
touched on, digital economies have become The Middle East has made significant the size of its digital economy in just 10
significant contributors to Gross Domestic progress in the adoption of digital years. Indeed, all of the countries of the
Product (GDP). China's digital economy, for technologies over the last decade. Mobile region have undertaken initiatives to realize
example, was valued at US$5.4 trillion in broadband penetration across Gulf ambitious policy goals, focusing on data,
2020, contributing to 40% of the country's Cooperation Council (GCC) countries is now Artificial Intelligence (AI), the cloud, and
total GDP. Significantly, it helped the at 100% and more than 50% of consumers 5G-enabled services.
country overcome the challenges posed by in the region already shop online. In the UAE,
the COVID-19 pandemic, contributing to an 80% of digital payments are contactless. The Future of the Digital Economy
overall growth in GDP of 9.6%. With respect to the prevalence of digital Digital technologies are proliferating and
skills among the population, GCC countries touching more and more aspects of the
Employment Creation: The fundamental are ranked on par with major global players economy, particularly in terms of the ways
shift in the ways work is done in the digital such as Hong Kong, Germany, South Korea, products and services are consumed
economy creates new opportunities for and Ireland. and delivered, the way transactions are
job creation. The sharing economy model, Changing consumer characteristics have conducted, and how operations are
for example, is already providing millions also changed the nature of businesses performed. It's predicted that, by 2022,
with viable livelihoods. China's own sharing in the region. Government-to-consumer more than half of the global economy will
economy grew 1.3% year-on-year in 2020 interactions in the UAE, for example, are be based on or influenced by digital.
and presently has an estimated labor pool now predominantly digital and there are
of 6.31 million people. plans in place to close half of existing The Future of Services and Commerce:
government service centers by the end of Organizations today are taking a digital-
Reaching the Underserved: Rapid 2022. Indeed, the number of bank branches by-default approach to services and

108 JULY-AUGUST 2022