While the Arab region is home to five percent of the world's population, it represents less than one percent of the world's Internet users. A study by experts from Booz Allen Hamilton and the business school INSEAD identifies the challenges facing the Arab world in effectively developing Information and Communication Technology (ICT), and includes recommendations for policy initiatives to increase the region's global competitiveness. The study focuses specifically on Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Saudi Arabia, Syrian AR, and the United Arab Emirates (UAE).

Digital Divide

The digital divide is often a reflection of deeper socio-economic inequalities between countries and regions. "The Arab world accounts for two percent of the world's gross domestic product, and this is a relatively high number by international standards," explained Booz Allen Vice President Karim Sabbagh. "So, the traditional digital barrier of lower income per capita does not appear to be the major impediment for ICT development in that region." Challenges cited in the study include environment (political/regulatory leadership), readiness (access affordability and infrastructure), and usage (awareness, universal access, and compelling content).

Regional Differences

There are marked variations among the Arab countries in their efforts to adopt ICT tools and grow their networked economies. For example, in 2001 the number of estimated personal computers per 100 residents varied from 1.3 in Morocco to 15.8 in the UAE, and the number of internet users per 10,000 residents ranged from 36.1 in Syrian AR to 3,292.4 in the UAE. "Arab countries can build on each other's experiences to develop and implement their individual ICT agendas and an integrated regional ICT market," Sabbagh said. "By working together to position themselves on a common competitive platform, they can improve their combined standing in the world ICT market."

The experts believe that the Arab countries have the opportunity to fast track their ICT development program by enacting new policies, and their recommendations draw upon best practices from the United Kingdom, Sweden, Canada, Australia, the United States, Italy, Japan, Germany, and France. Successful international programs cited include Germany's BundOnline, Canada's e-Business Roundtable, and the U.K.'s Government Gateway Initiative.

"Because the window of opportunity for catching up with developed economies is limited," Sabbagh said, "the Arab governments must act quickly to boost ICT advancement in their own countries."

About the Study

Booz Allen Senior Vice President Charles El-Hage, Vice President Karim Sabbagh, and INSEAD Professor Soumitra Dutta are the authors of "Challenges for Information and Communication Technology Development in the Arab World." The study was developed as part of the first ever World Economic Forum Arab World Competitiveness Report 2002-2003 published by the Oxford University Press, New York.

story posted March 17, 2003