Exclusive: UAE TRA chief on boosting national digital firms

Digital transactions have become more crucial than ever, whether in terms of government services or commercial transactions such as trading

Covid-19 still reminds us that life will never be the same again, as its effects will accompany us for years and decades to come. However, these effects are not necessarily all negative. This pandemic gave the world an invaluable opportunity to accelerate transition towards a digital society and economy that are more suitable for this era.
Digital transactions have become more crucial than ever, whether in terms of government services or commercial transactions such as trading.
If we remember the early days of the pandemic, with the lockdown, quarantine measures, social distancing, and the isolation of people in their homes, global digital trade companies rushed to seize the opportunity.
Gradually, digital transactions spread, revealing a paradox "the misfortune for some, happiness for others". As much as the pandemic was a blessing for the most prepared companies (which are mostly global and cross-border), it put several emerging and medium companies in many countries in a tight spot and threw some of them off the market.

Today, while the world begins to breathe a sigh of relief after the precautionary measures were eased in many countries, the enormity of the losses suffered by national economic sectors that were the hope of their countries for development is evident. It turns out that the economic damage resulting from this situation may be no less harmful than the pandemic itself.
We don't add much if we say that digital technology is changing everything. In essence, the Fourth Industrial Revolution is a digital revolution. But today, the world has begun to sense the threat looming in the retail sector, which is one of the indicators of the economic health of countries and markets.
India, for example, was one of the countries that tackled the matter early. It rushed to pass a legislation limiting the damage to its national economy and its small and medium-sized companies due to what it called an 'imbalance' in its digital trade.
The United States did the same against digital commerce companies from the East and elsewhere. The UK did likewise and protected its companies from the unexpected storms of digital commerce, and so did many other countries. 
These steps may (or may not) be helpful. This is another topic and it has its experts to comment on it. However, what is agreed is that the Covid-19 pandemic has produced new reality that requires a comprehensive review to immunise national companies, whether small, medium, or even large, and to strengthen their role as pillars of the national economy.
Foreign investment is essential, and so are strong national companies. The question is: how do we achieve the golden balance by keeping both? - Hamad Obaid Al Mansoori is the Head of Digital Government and Director General, TRA