Overview Of 5 Digital Trends Every GCC Government Needs To Consider In 2023 And Beyond

Last Updated on November 9, 2023 by Ameer Hamza

Despite the region’s continued reliance on oil and gas production, GCC states are investing extensively in other areas of the digital economy, particularly information technology and the ongoing digital transformation process. Understanding technology trends is crucial for GCC nations to embrace the future technological transition. As sectors undergo a digital revolution and social and political landscapes change, GCC nations must adopt more innovative business models. In GCC countries, digitization is being used to reduce their dependence on the oil and gas industries.

Digital transformation in GCC has revolutionized the labor market because Gen Z and more women are increasingly joining the workforce. Further, ultra-rich people are expanding, and the millionaire class in the UAE is predicted to rise by 60% from 2019 to 2030. That puts pressure on organizations to offer tailored digital services to the preferences of these distinct groups. On the other hand, digital economy expansion has increased the importance of cybersecurity due to rising cyber-attacks, making GCC keep an eye on cybersecurity trends.

Digital Services: Technology Geared For Serving The Public

Government digital services have improved with digitalization. Particularly, COVID-19 forced governments to rapidly adopt electronic government services tailored to public needs. In addition, the private sector’s competitive pressures have resulted in digital service delivery that is dramatically more individualized, accessible, and people-centered. This has established a standard for the public sector to meet service quality.

A Transition To A Digital Economy Fueled By Investments

Another technology trend to watch in 2023 is the GCC nations’ ICT investments in the region. The GCC countries have all committed to making digitalization a cornerstone of their economic and social growth strategies. The United Arab Emirates, Saudi Arabia, and Kuwait have all started major digital projects as core parts of their Vision 2030 goals. More than $30 billion will be invested in 22 megaprojects across many key sectors in Bahrain, as per recent announcements. By 2025, more than 40 percent of the region’s ICT budget is expected to be allocated toward achieving digital transformation projects.

Developing A Cyber-Resilient Framework

Increased reliance on digital systems has made the world more vulnerable to cyberattacks. Cyberattacks have not gone unnoticed in MENA countries. Attempts at hacking the Kuwaiti interior ministry, the Qatari news agency, and Saudi Aramco stand out as severe occurrences in the region’s history of cybercrime. The number of malicious cyberattacks in the UAE increased by at least 250% in 2020. GCC nations have strengthened cybersecurity to combat this danger.

AI Adoption And Innovation: New Waves Of Digital Trends Are Rising To The Surface

The governments of the GCC states are integrating cutting-edge technologies into their primary offerings. They are capitalizing on the enhanced possibilities readily accessible by AI and IoT. Authorities in the UAE have started moving their operations online. Dubai has introduced an artificial intelligence-based advisor named Rashid as part of its Smart Dubai initiative. Not only that, but NEOM has prepared for the unparalleled stimulation of AI and IoT technologies.
Stepping Into The Metaworld

The Middle East and GCC are growing more metaverse-savvy. At a CAGR of 43.5%, the MENA region’s virtual reality industry is forecast to be worth $23 billion in 2028. In 2023, the metaverse’s legislative framework will mature further. To foster transparency, credibility, and accountability in this game-changing innovation, authorities must set up solid governance mechanisms.