Digitalization, Growth, and Diversification in the Gulf

The Gulf Cooperation Council member countries have actively embraced digital transformation, making notable progress in the extensive development of digital infrastructure, the maturity of government digitalization, and a dynamic ecosystem for financial technology activities. In a new paper, Digital Transformation in the Gulf Cooperation Council Economies, the International Monetary Fund highlights the positive relationship between progress in digitalization and more favorable macroeconomic and financial outcomes, including economic growth, government effectiveness, financial inclusion, and private sector resilience to shock. New analysis by the Mohammed bin Rashid School of Government also emphasizes the important and growing role of digitalization in supporting growth and economic diversification. Within the context of these two forthcoming papers, what additional efforts can be made toward improving digital skills, industry, and innovation? What are the challenges raised by the broad adoption of digital technologies and artificial intelligence, especially relating to cybersecurity and the potential effect on the labor market? Could comprehensive strategies help further accelerate the GCC countries’ already impressive progress on digitalization and support their broader economic transformation agendas?

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