RIYADH: Economies across the Gulf Cooperation Council region are closing the gap with advanced nations when it comes to digital transformation, according to a new International Monetary Fund report. The study found that the region has rapidly advanced in digital infrastructure and government services since the pandemic but still faces challenges in financial inclusion, corporate digital adoption, and workforce readiness for artificial intelligence. The findings come as Gulf states accelerate efforts to diversify their oil-dependent economies through technology-driven growth. Saudi Arabia has launched multi-billion-dollar initiatives such as NEOM, Dubai has pushed forward the Digital Silk Road, while Bahrain and Qatar are emerging as fintech hubs. “Digitalization is transforming the global economic and financial landscape, with the potential to boost productivity and promote diversification in the Gulf Cooperation Council,” stated the report. “The COVID-19 pandemic has significantly accelerated the digitalization agenda globally, creating new opportunities for the digital economy as an increased number of activities have shifted online,” it added. The IMF report highlighted that the GCC’s digital acceleration has been particularly notable in public sector services and connectivity. The region’s “GovTech Maturity Index,” which measures digital government transformation, now rivals or exceeds the average of advanced economies. Saudi Arabia and the UAE lead the region, with their GTMI scores ranking above the 95th percentile globally. “Most GCC countries have a higher GTMI than the AE (advanced economy) average in 2022, with substantial progress made in every GCC country since the onset of the pandemic,” the report said.
