Digital Transformation in the Gulf Cooperation Council Economies
Departmental Papers, April 1, 2025
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Bibliographic details
- Authors: Ran Bi, Fozan Fareed, Jeong Dae Lee, Sidra Rehman, Yuan Gao Rollinson, Tongfang Yuan
- Published: April 1, 2025
- Series: Departmental Papers
- DOI: https://doi.org/10.5089/9798400291449.087
Overview
- The paper reviews the GCC's acceleration in digital transformation, particularly since the onset of the pandemic.
- Focus areas include digital infrastructure, GovTech (government technology) maturity, and fintech activities.
- A novel composite index—the Enhanced Digital Access Index (EDAI)—is constructed to benchmark the GCC against advanced economies (AEs) and other emerging market economies.
Key findings
- On average, the GCC has closed its gap with AEs on the overall EDAI.
- The GCC displays particular strengths in:
- digital infrastructure
- affordability
- Empirical analysis (based on a global sample) finds positive correlations between digitalization advancement and:
- enhanced financial inclusion
- strengthened banking sector resilience during crises
- improved government effectiveness
- faster corporate sector recoveries following economic downturns
- Economy-wide digitalization is positively associated with economic growth and resilience.
Policy recommendations and implications
- Advance comprehensive strategies to further leverage digitalization to:
- enable a more effective and transparent public sector
- balance opportunities and risks associated with fintech
- enhance digital skills and digital adoption
- provide adequate social safety nets and appropriate training to strengthen social protection and labor market inclusion
- create an enabling environment to further digital penetration
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- Digital Transformation in the Gulf Cooperation Council Economies