KT edit: Digital economy could power UAE's growth after the crisis

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Published: Thu 9 Apr 2020, 9:17 AM

Last updated: Thu 9 Apr 2020, 11:22 AM


Covid-19 has disrupted our world, and pushed us to make choices we were reluctant to make. The biggest change has been our swift adaptation to the online world. We had good online presence before this pandemic, too, but the activities online largely complemented our offline world. We were shopping for discounts, and sometimes for convenience; world leaders were using virtual platforms mostly for messaging and greetings, but the online world never took precedence over our offline world. Real meetings happened offline, in our real world, face to face. The pandemic has upended this reality. Covid-19 has become the true digital change agent, forcing countries and people to rethink their ways and lives. Government summits have been cancelled and meetings are happening virtually. Our world of trade right now is empowering e-commerce companies that are acting as bridges between our real and virtual economies. The likes of Alibaba and Amazon are powering retail trade, social media firms, IT companies providing platforms for video calling and conferences have found new impetus. Zoom, videoconferencing application, for instance, has been among the most downloaded apps, as offices, schools, individuals scrambled to find new ways to stay connected and ensure minimal disruption to work, education, and routine. It is the rise of the weightless world, where everything is done virtually.
These changes will have a significant impact on the world of trade and commerce. We might not go back to how things were, after all. Global dependence on international trade partners may change. Countries might begin to look inwards for short-term production. The virtual world, which seemed impersonal just a few months ago, is finding a new meaning. It is efficient, as we are realising now. Data is truly being seen as the new oil, as companies across industries mine it and use it for our collective advantage. New rules will be written and countries that have digital infrastructure would flourish. It is key to business continuity. The UAE has been laying foundation for a strong digital economy for years, and it could well benefit from the new normal. The government has put in place platforms such as UAE pass, for digital identification and transactions, Dubai government has moved most of its services online, and e-commerce also has found a firm footing in the country. The country should now look at ways to digitise the entire public and private sector systems. It will take time but it is necessary. Currently, the UAE's digital economy contributes 4.3 per cent to the economy, and is expected to reach $63.8 billion by 2023. As the economy diversifies, it would be worth building stronger digital infrastructure and emerge as a gateway for the MENA region.
 

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