How Gulf Countries Can Move From Digital Adopters To Digital Disrupters?

Companies in the Gulf, particularly information technology companies in Saudi Arabia, are categorized as digital adopters. The fast-paced tech industry follows unusual trends that can abruptly convert a highly advanced technology into an obsolete one. To move from digital adopters to digital disrupters, IT outsourcing in Saudi Arabia needs to evolve.

Getting Ahead Of The Curve

In the last decade, gulf countries have had astounding growth in the digital sector. IT companies in the leading Gulf countries such as Saudi Arabia and UAE have made great strides in becoming digital adopters from digital learners. And now they are on the brink of transforming themselves into digital disruptors. Gulf countries are attracting foreign brands as well as enticing powerful local companies and talent to invest their time and resources.

According to Arab News, it is estimated that upon the successful transformation of these tech companies, they could add $138 billion of revenue to the regional GDP. 

The Growth Spurt

Usually, the standings of a country are measured using the Digital Economy Index (DEI) which enables us to gauge a country’s digital maturity or the stage of its digital transformation. DEI is measured using five factors that are unanimously noteworthy: foundations, innovation, talent, local production, and adoption.

The investments and continuous efforts of the governments and local tech champions led to exponential growth in the DEI of the MENA region. More than any other part of the world, the Gulf countries grew their digital assets at twice the speed of the OECD countries. And this was all possible after the investments in digital infrastructure, the launching of technology parks and business incubators, and the adoption of the e-platforms introduced by the governments of the region.

And even after all of this, information technology in Saudi Arabia has untapped potential to convert its digital development into economic opportunity.

DEI Categories

As it stands, the rankings based on the DEI performance are classified into three major categories:

• Digital Learners

These countries are thought to be in digital infancy. Such countries prioritize digital adoption at a lower rate and the tech companies are far and few between.

• Digital Adopters

Countries such as the GCC are included in this category. Countries that have met connectivity requirements are able to promote an increased influx of digital solutions. Countries at this level tend to invest in talent development, enabling digital innovation, and localizing digital services.

Not only that but information technology in Saudi Arabia and IT outsourcing in Saudi Arabia are supported and empowered through digital-friendly policies and regulations, skill development programs and boot camps, and formal government partnerships with private companies.

• Digital Disrupters

Usually, the most developed economies fall under this category. It is because these stable economies have developed a safe space for tech companies to prosper. Through this enabling system, they become the leaders in creating and adopting the latest digital developments in the industry.

Digital disruptors produce tech outputs that set standards. These countries become net exporters of technology solutions and services. Through innovation, startup ecosystems, and top-notch digital experts, digital disrupters cause disruption in the tech verticals.

Abundant Opportunities

There is a strong relationship between a country’s DEI score and its economic development once the list of 109 countries is analyzed. This relationship serves as proof that the outcomes of investing in tech businesses are financially fruitful.

It is analyzed that each 10% growth in a country’s DEI score shows a 2.6% increase in their GDP per capita growth and 1.1% growth in national employment.

There is an estimate that if the Gulf countries were to evolve into digital disruptors, the economy would grow from 12.2% to 13.4%. This economic growth would be wholly due to digital transformation. It shows clear signs of prosperity and growth if IT outsourcing in Saudi Arabia is promoted.

Steps To Promote Digitization

To cash in on all of the opportunities promised by the tech industry, governments of the Middle East need to take the necessary steps. Implementation of fair regulations and policies is crucial for the upbringing of the digital sector.

Among the key factors for the growth of information technology companies in Saudi Arabia are more talent development in the IT industry, innovative leadership in the region and in the world, and domestic digital products and services.

Along these lines, digital activities, venture capital provision, disruptive business models, and patents should be enforced and encouraged to stand side-by-side with the world’s leading tech companies.

• Regulatory Framework

Reformations in the form of a regulatory framework are required to adapt to the new digital market changes and trends. There needs to be a certain level of anticipation of new business models and tech developments underway.

Not only that but governments need to assess the impact of their policies through certain means such as economic figures so that ineffective or negative policies may be replaced with effective and positive ones. This will reduce errors on the part of the government and ensure steady digital growth.

Regulations in data protection, financial services, cybersecurity, digital economy policies such as taxation, and e-commerce transactions can increase the efficiency of financial influx.

• Development Of Talent Pool

To become a thriving digital economy, the Gulf countries need to work on more talent in the digital sector and produce their own experts on a large scale. Universities that make knowledgeable graduates and workshops to facilitate and upgrade the tech skills of the new and old workforce are vital to the dream of digital disruption.

• Innovation and Localization

The governments also need to encourage local tech companies and their local solutions in the form of products and services. Creating an environment where startups and entrepreneurs are supported will benefit the regional economy, both directly and indirectly.

Conclusion

Adapting digital transformation and technology trends is no longer a choice. The digital economy is projected to take over all other industries by 2030. Hence projects such as “Vision 2030” for IT outsourcing in Saudi Arabia are important to partake in guaranteeing economic growth in a sustainable and technologically advanced way.