Page 75 - SAMENA Trends - March-April 2023

ARTICLE SAMENA TRENDS

From the digital Based on an analysis of the digital value Innovation Hubs (IH), Efficient Prosumers
(EP), Service Powerhouses (SP), Global
perspective, the majority of chain that includes detailed benchmarking Factories (GF), Business Hubs (BH), Digital
of beneficial policies and capabilities in
the Middle East countries 20+ countries, discussions with experts Patrons (DP), and Digital Novices (DN).
are Digital Novices or in national digital transformation, and a The archetypes differ in their presence
literature review and leveraging Arthur D.
or dominance in the digital value-chain
Digital Patrons, apart from Little’s project repository of national digital step, as illustrated in Figure 1. However,
the United Arab Emirates strategies and industry experience, seven archetypes are not limited to specific steps
in the value chain – instead, their position
digital economy archetypes were identified.
which is a Business Hub This enables nations to take a tailored and marks the focal domain in the overall value
and aspires to become an independent approach to aligning their chain. They can be further differentiated
Innovation Hub. digital economy policies and objectives through other underlying characteristics,
The seven digital economy archetypes are:
such as economic status, population size,
Figure 1: Digital economy archetypes with country examples

Source: Arthur D. Little analysis
Note * Digital Patrons can produce and consume as well
1) Value captured as a share of total value created across the value chain
political stability, geographical advantage Bahrain, Kuwait, Oman, Saudi Arabia and A best-practice 5G strategy
and technology penetration. In addition, Qatar are classified in a second group,
country archetypes guide policy priorities. Digital Patrons. Endowed with natural is essential to support the
resources, primarily oil based, these introduction of new appli-
From the digital perspective, the majority countries have supported economic
of the Middle East countries are Digital development with exports of energy cations and services that
Novices or Digital Patrons, apart from the resources, consuming a high level of digital need higher communi-
United Arab Emirates which is a Business infrastructure, technology and services. cation speeds and lower
Hub and aspires to become an Innovation However, there is limited value creation
Hub. from digital use and consumption. latencies.

Afghanistan, Iraq, Jordan, Lebanon, The United Arab Emirates is classified technology, capabilities, ecosystem and
Pakistan, Syria and Yemen are classified as a Business Hub, attracting talent industry – as these are the driving forces
as Digital Novice economies, as they have and companies from different regions, underpinning digital transformation. The
limited core nationwide infrastructure to generating competitive advantages in core criticality of policies, laws and regulations
provide secure, continuous and widespread areas, such as finance, accounting and within the dimensions varies depending on
telecommunications, resulting in limited administration of regional head offices for the country’s archetype,
digital adoption and consequently limited many global corporates.
value creation and jobs from a nascent • Technology
digital economy. These countries have Tailoring digital strategy and public policy All countries need better connectivity
the most to gain as digital infrastructure/ Policy makers need to formulate as connectivity is a critical determinant
technologies is an enabler for economic policies, laws and regulations across of every country's future growth and
development. four interrelated policy dimensions – prosperity. Irrespective of the national

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