Dubai: In January last year, when a group of young Egyptians posted a notice on Facebook urging people to gather at Tahrir Square, no one knew what to expect. In less than a month, history had been created.
The internet, which used to be seen as an enabling tool for global businesses, has become a driver of socio-economic and political change in the Arab world.
Digitisation in emerging countries could deliver as much as $6.3 trillion in additional nominal GDP and create 77 million new jobs over the next 10 years, a latest report by management consultants Booz and Company, says. “Capturing this rich return will require a concerted public and private effort to bring digitisation to the world’s poorest people — those at the bottom of the pyramid.”
Digitisation is characterised by the mass adoption of connected digital technologies and applications by consumers, enterprises and governments.
As many as 3.9 billion people are still living at the wrong side of the digital divide. They include 95 per cent of South Asia’s population, 68 per cent of the Middle East and North Africa’s (MENA) population, and 27 per cent of Latin America’s population.
Digitising the bottom of the pyramid over a period of 10 years will require an overall investment of $1.4 trillion — or $47 per person per year, a challenging task given the limited propensity of this population to spend on digital products and services.
However, despite its recent application in creating the biggest political storm, young Arab internet users represent nearly 4 per cent of the digitally active users worldwide.
Arab Digital Generation
The digitally active generation — the Arab Digital Generation (ADG) — is emerging in the MENA region. Born between 1977 and 1997, this demographic is 40 per cent of the MENA population. A growing number of them are extremely active online and in social networks, that could potentially drive the social and economic changes in the region.
Advances in information and communications technology (ICT) are shaping a new generation in the MENA region, one that is far different from its predecessors. Today, young people increasingly conduct their lives online. They use digital technology to socialise with their friends and to browse online for products and services.
This size of the Arab digitally active generation is expected to grow at 11 per cent annually compared to only 7 per cent for the world.
A recent survey by Google and Booz and Company finds that 83 per cent of them use the Internet daily and 40 per cent use the Internet for at least five hours a day. About 61 per cent spend more than two hours per day on social networking sites while 78 per cent prefer the Internet to TV.
“In truth, this segment of society strongly distinguishes itself from earlier generations; these young people are far more active as both consumers and critics,” the report titled Arab Digital Generation – A Key Actor in Shaping the Future of the MENA Region, says.
“Although they have similar digital characteristics than other young people around the world, they are distinctly Arab in that they reflect the traditions, challenges and tribulations of their region.
Of the total 3,000 people surveyed, the report finds that 16 per cent access the Internet from schools or academic institutions; 76 per cent access it from home while 53 per cent research companies and products online, and 51 per cent spread the word about their experiences with companies—both good and bad.
“This generation has high expectations regarding digitization across myriad aspects of Arab society,” said Dr. Karim Sabbagh, a Senior Partner with Booz & Company. “Governments need to play their part by catering to the demands of the ADG’s members, successfully communicating with them and adequately prioritizing services.”
The technology usage in the Arab world is growing at a faster rate than the world average. From 2006 to 2011 the number of Internet users in Arab countries has been growing by 23 per cent annually.
Strong urbanisation
World internet users, by comparison, have grown by only 14 per cent annually. In addition, the region is undergoing a strong urbanisation trend, and urban dwellers are similarly more likely to use technology.
At the same time, the MENA region has seen extremely rapid growth in ICT infrastructure.
“Over the past five to seven years, no other part of the world has advanced as rapidly,” the report says. “Through investments in telecommunications infrastructure, digital readiness initiatives, and competitive arrangements for network providers, the region has closed the digital gap with North America, Europe, and Asia.”
The Networked Readiness Index of the 2012 Global Information Technology Report ranked three Arab countries in the top 30. In the United Nations’ e-Government Survey 2012, the UAE was among the top third of 190 countries in telecommunications infrastructure index value, along with Qatar, Saudi Arabia, and Bahrain.
Employment opportunities
Meanwhile, in another report by Dubai School of Government (DSG), revealed that social media can have a dramatic impact on job creation and employment opportunities. The report was based on a survey conducted among 5,000 people in the GCC, in which nearly 80 per cent of the respondents said that technology could help provide access to critical job market data and 71 per cent claimed they would rely on social media to find their next job.
“Despite having few stable economies in the region today, the most active part of the Arab population; the youth, is increasingly feeling empowered. Our ongoing research over the past two years has shown that close to 50 million Arabs are actively connected to social media and primarily use the platforms to change social and political realities in their countries,” Fadi Salem, Director of the Governance and Innovation Programme, DSG, and co-author of the report, said.
The report also hailed social media as a critical tool for start-ups across the Arab world, with 86 per cent agreeing it contributed to business success.
“In a dynamic, rapidly evolving region such as the Middle East, where young, tech-savvy people are seeking to forge new opportunities, it is critical that companies use social media to engage both existing and aspiring employees,” Sam Alkharrat, Managing Director, SAP MENA, said.
DSG’s report has highlighted that social media is viewed as a facilitator of significant educational advantages. While 84 per cent respondents said students would benefit from utilising social media in developing entrepreneurial skills, 76 affirmed they use social media and ICT tools to acquire such business abilities.
In sum, with about 90 million Internet users in Arab countries, growing at over 23 per cent annually, the ADG will become a force with tremendous potential to transform the MENA region — across societal and economic dimensions.
To date, digitisation has already made a significant impact on the ability of emerging countries to create jobs and grow their economies. Between 2009 and 2011, it created 17 million jobs in such economies and contributed $350 billion to their overall nominal GDP
