The Banking Executive Magazine - February 2025 Issue

THE HORIZON OF BIG TECHS IN THE ARAB WORLD The development of Big Tech in the Arab world is rapidly evolving, driven by significant investments and strategic initiatives. Saudi Arabia is at the forefront of dig- ital transformation, with ambitious plans to become one of the most technologically advanced nations. The country has committed to invest- ing 2.5% of its GDP into research, development, and innovation by 2040. Projects like the Saudi Vision Cable and the establishment of the Center3 Company are pivotal to this vision. Saudi Arabia is leveraging technology to address its healthcare challenges. Initiatives include estab- lishing national centers for medical technology assessment, health infor- mation systems, and virtual training for medical staff. Investments in telemedicine and AI are aimed at im- proving healthcare outcomes, espe- cially for chronic conditions like diabetes. Across the Arab region, digital trans- formation has seen a significant boost. The online population has grown from 28.8% in 2012 to 70.3% in 2022. Governments are recogniz- ing the urgency of adopting digital technologies, leading to fundamental changes in societal dynamics and in- stitutional frameworks. Digital technologies in the Arab world are seen as crucial for achiev- ing the Sustainable Development Goals (SDGs). The UNDP's "Digital for Sustainable Development" initia- tive aims to drive policy reform, re- search and development, and promote digital literacy and inclu- sion. Despite the progress in digital trans- formation in Arab countries, there are still challenges to overcome, such as the digital divide. About 30% of the population in the Arab region remains offline, highlighting the need for continued efforts to ensure digital inclusion. The Arab world is making strides to- wards a high-tech future, with signif- icant investments and strategic initiatives driving this transformation. ROADMAP FOR ARAB COUNTRIES TO SUPPORT AND DEVELOP BIG TECHS Arab countries should support and develop their own Big Techs. The roadmap to achieve this involves a combination of strategic investments, fostering innovation, and ensuring a favourable regulatory environment. • Investing in Innovation: Encouraging and funding research and development to drive techno- logical advancements. This in- cludes investing in AI, machine learning, and other cutting-edge technologies. • Fostering a Culture of Innovation: Creating an environment that pro- motes creativity and experimenta- tion. This involves establishing a culture where failure is seen as a learning opportunity. • Building Strategic Partnerships: Forming alliances with Big Tech companies, academic institutions, and research organizations to share knowledge, resources, and expert- ise. • Leveraging Data-Driven Decision-Making: Utilizing data analytics to inform business decisions, improve oper- ational efficiency, and personalize customer experiences. • Adapting to Regulatory Changes: Complying with new laws and reg- ulations and developing new laws governing Arab Big Techs. By adopting these strategies, Arab Big Techs can grow, innovate, and maintain their competitive edge in the global market. the BANKING EXECUTIVE 28 ISSUE 194 FEBRUARY 2025