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From Crisis to Opportunity
Strengthening MENA’s digital ecosystem in the wake of the COVID-19 pandemic

A report by The Economist Intelligence Unit

April 2021                                           Sponsored by
FROM CRISIS TO OPPORTUNITY: STRENGTHENING MENA’S DIGITAL ECOSYSTEM
IN THE WAKE OF THE COVID-19 PANDEMIC

                    FOREWORD
                    From Crisis to Opportunity: Strengthening            HE Abdulaziz Alrasheed, Assistant Minister
                    MENA’s digital ecosystem in the wake of the          for International Financial Affairs and Macro-
                    COVID-19 pandemic is an Economist Intelligence       Fiscal Policy, Ministry of Finance, The Kingdom
                    Unit (EIU) report that has been commissioned         of Saudi Arabia
                    by Google. The findings are based on an              HE Dr Saad Alshahrani, Deputy Minister
                    extensive literature review of more than 100         of Financial Affairs and Macro-Fiscal Policy,
                    studies, an internal expert panel and an             Ministry of Finance, The Kingdom of Saudi
                    interview programme conducted by the EIU             Arabia
                    between July and August 2020. A number of
                                                                         Barbara Ubaldi, Head of Digital Government
                    findings were updated in January 2021. In total,
                                                                         and Data Unit, Directorate for Public
                    more than 10 representatives from government
                                                                         Governance, OECD
                    entities, the private sector and academia were
                                                                         Arthur Pataud, MENA Policy Analyst, OECD
                    interviewed.
                                                                         Dr Tina Zintl, Senior Researcher, “Stability and
                    The EIU bears sole responsibility for the content    Development in the Middle East and North
                    of this report. The findings and views expressed     Africa”, German Development Institute
                    do not necessarily reflect the views of the          Dr Bernhard Trautner, Professor, German
                    commissioner. The report was produced by a           Development Institute
                    team of researchers, writers, editors, and graphic   Hazem Galal, Partner, Global Leader for Cities
                    designers, including:                                & Local Government, PwC Middle East
                                                                         Chris Yiu, Executive Director, Technology and
                    Adedayo Bolaji-Adio, Project Director                Public Policy, Tony Blair Global Institute for
                    Meriem Menani, Project Advisor                       Global Change
                    Pooja Chaudhary, Project Manager                     Suhail Shersad, Digital Economy Specialist,
                    Sumer Sharma, Lead Analyst                           World Bank
                    Zeina Dowidar, Research Contributor                  Cem Dener, Lead Governance Specialist,
                    Ben Parisi, Writer                                   World Bank

                    Jan Copeman, Editor                                  Stephen Davenport, Global Lead, Anti
                                                                         Corruption, Openness and Transparency, World
                                                                         Bank
                    Interviewees
                    Our thanks are also due to the following people      Kimberly Johns, Senior Public Sector
                    for their time and insights:                         Specialist, World Bank
                                                                         Jens Kromann Kristensen, Practice Manager,
                    Dr Ahmed Daher, Deputy Minister of                   Middle East and North Africa Region, World
                    Education for Information Technology, Ministry       Bank
                    of Education, Egypt

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FROM CRISIS TO OPPORTUNITY: STRENGTHENING MENA’S DIGITAL ECOSYSTEM
IN THE WAKE OF THE COVID-19 PANDEMIC

                    CONTENTS
                    EXECUTIVE SUMMARY                                                                   4

                    INTRODUCTION                                                                        6

                    SECTION I: THE IMPACT OF COVID-19 IN THE MENA REGION                                8

                    SECTION II: EMPLOYING TECHNOLOGY TO BUILD RESILIENCE IN KEY                         13
                    SECTORS

                    SECTION III: GAPS AND OPPORTUNITIES FOR ENHANCING THE                               28
                    TECHNOLOGY ECOSYSTEM IN MENA ECONOMIES TO BUILD RESILIENCE
                      Gaps in MENA’s technology ecosystem                                               29
                      Policy solutions to strengthen MENA’s technology ecosystem and build long-        41
                      term economic resilience

                    SECTION IV: CONCLUSION                                                              53

                    ENDNOTES                                                                            54

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FROM CRISIS TO OPPORTUNITY: STRENGTHENING MENA’S DIGITAL ECOSYSTEM
IN THE WAKE OF THE COVID-19 PANDEMIC

                    EXECUTIVE SUMMARY
                    COVID-19 has taken more than two million             In response to the socio-economic fallout of
                    lives1 and wreaked havoc on even the strongest       COVID-19, some governments in the MENA
                    economies. The pandemic has forced changes           region have leveraged technology to ensure
                    to virtually every aspect of economic and non-       that critical social services remain available,
                    economic life, from the critical to the mundane.     and that businesses are able to operate despite
                    Overburdened healthcare systems around the           increasing uncertainty. The countries of the
                    world have scrambled to build makeshift field        Gulf Cooperation Council (GCC), for instance,
                    hospitals to treat patients, whilst schools have     have deployed advanced technology to launch
                    struggled to provide online instruction and in-      telehealth services, offer digitised government
                    person business exchanges have all but ground        services and transition school lessons online.5
                    to a halt.2                                          In North Africa, governments have expanded
                                                                         e-learning services to ensure that students
                                                                         continue to access education. However, not all
                    Policymakers around the world have
                                                                         MENA countries were technologically equipped
                    implemented various measures to tackle the
                                                                         to handle the crisis.6 Across the region, even in
                    spread of the virus, including lockdowns and
                                                                         the richer GCC countries, a number of factors
                    social distancing. However, these measures have
                                                                         still hold countries back from their full digital
                    forced business closures and travel restrictions,
                                                                         potential. These factors include persistent
                    exacerbating the economic consequences of
                                                                         technology skills gaps, complex regulatory
                    the crisis. In the Middle East and North Africa
                                                                         requirements, lack of access to digital systems,
                    (MENA) region, COVID-19 has led to a severe
                                                                         digital divides across age and gender, and
                    contraction in GDP growth, putting at risk the
                                                                         weak data flow, classification and protection
                    region’s economic growth strategies. For oil-
                                                                         frameworks.7
                    exporting MENA countries, the global fall in
                    demand has resulted in a slump in oil prices,
                    driving an increase in job losses. Widespread        The pandemic presents a window of opportunity
                    travel restrictions have also resulted in the loss   for MENA governments to reassess their digital
                    of significant tourism revenue; a particular         readiness and drive changes that will better
                    concern for MENA countries, such as Egypt and        equip them to create economic and social
                    the United Arab Emirates, where it contributes       opportunities, mitigate risks, and minimise
                    up to 20% of GDP. 3 Across the region, the           socio-economic disruptions during future crises.
                    current health and economic crisis has amplified
                    long-standing structural challenges, including
                                                                         This report examines how technological tools
                    high youth unemployment, limited economic
                                                                         have been successfully applied in MENA during
                    diversification, low business productivity,
                                                                         the pandemic, as well as key obstacles to future
                    overburdened public sectors, and uncompetitive
                                                                         technological adoption in the region. It assesses
                    business environments.4

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FROM CRISIS TO OPPORTUNITY: STRENGTHENING MENA’S DIGITAL ECOSYSTEM
IN THE WAKE OF THE COVID-19 PANDEMIC

                    areas where new or revised policies based on      These require a robust set of data security,
                    international best practices could catalyse the   transfer and privacy laws and regulations, which
                    MENA region’s use of advanced technologies to     must be enforceable, credible and trusted by the
                    bolster economic resilience.                      public to be in its best interest;
                                                                      3. The elevation of educational standards to
                    The study finds that MENA countries can           ensure that MENA’s current and future workforce
                    speed up their economic recovery and              is adequately equipped with the hard and soft
                    better prepare for future shocks by building      skills that will enable them to participate in a
                    the digital infrastructure, data security         high-tech economy;
                    regulation and human capital development          4. The promotion of private participation,
                    frameworks that will enable the greater           regional startups and digital entrepreneurs
                    integration of advanced technologies              through the simplification of business licensing
                    throughout their economies. These three           procedures, and;
                    frameworks account for the physical systems       5. Accessible and interoperable legal systems,
                    (such as telecommunications infrastructure),      designed through a participatory process, with
                    policy environment (particularly cloud, data      key elements consistent across the region, that
                    flow and privacy laws), and educational           protect user data as the region increasingly
                    strategies that can equip MENA’s future           iterates new uses for Artificial Intelligence (AI),
                    workforce with the necessary digital skills.      cloud computing and advanced data analytics.
                    Together, progress in these areas will build
                    MENA’s technology ecosystem capacity to
                                                                      Although countries in the MENA region fall on
                    support the region’s long-term economic
                                                                      a wide spectrum of technological readiness, a
                    resilience.
                                                                      commitment to inclusive and strong economic
                                                                      growth requires that each country prioritises
                    In particular, an analysis of MENA’s current      these objectives in its national growth and
                    technology ecosystem highlights the need for      economic recovery agenda. Many MENA leaders
                    concerted policy changes, including:              have already started implementing policy
                    1. Unfettered, equitable access to high-speed     initiatives to build their technology ecosystem,
                    internet, which is the basic building block       and they must now continue to champion these
                    of preparedness, enabling remote learning,        advances in resilience to help safeguard the vast
                    e-commerce, business continuity and more          interconnected global population.
                    sophisticated and safer healthcare services;
                    2. The adoption of critical life-saving
                    technologies, such as contact tracing
                    applications and electronic medical records.

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FROM CRISIS TO OPPORTUNITY: STRENGTHENING MENA’S DIGITAL ECOSYSTEM
IN THE WAKE OF THE COVID-19 PANDEMIC

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FROM CRISIS TO OPPORTUNITY: STRENGTHENING MENA’S DIGITAL ECOSYSTEM
IN THE WAKE OF THE COVID-19 PANDEMIC

                INTRODUCTION
                T     he COVID-19 pandemic has forced changes
                      to nearly every aspect of public life. By the
                time the World Health Organisation (WHO)
                                                                        pandemic with the help of technology. It highlights
                                                                        how the pandemic has led to accelerated
                                                                        technology adoption by individuals, businesses and
                declared COVID-19 a public health emergency             governments in the region in an effort to mitigate
                of international concern on 11 March 2020,              against COVID-19’simpact and prevent future
                many countries around the world had enforced            disruptions. The report also identifies existing
                lockdowns and social distancing measures. These         challenges to widespread technology adoption
                measures have restricted business operations,           in the region and highlights opportunities for
                reduced international travel, limited global trade,     developing an advanced technology ecosystem
                and strained social service delivery systems.           that could help countries build long-term
                                                                        economic resilience.
                A country’s capacity to adapt in the face of
                these unexpected changes is an indication of its        SECTION I of this report reviews how the
                resilience. Crisis management that incorporates         COVID-19 pandemic has affected countries in the
                advanced technology ecosystems has proven to            MENA region. SECTION II assesses how countries
                be critical to building economic resilience and         in MENA have employed technology to respond
                mitigating the impact of COVID-19. For example,         to the socio-economic consequences of the
                South Korea was able to use existing technologies       pandemic in five sectors - healthcare, education,
                to aggressively trace the contacts of known             retail, tourism and government services. SECTION
                infected individuals and was one of the countries       III examines the major gaps in MENA’s technology
                with the most successful containment results, with      ecosystem that have limited the region’s ability to
                27 deaths per one million residents.8 Compared          harness the full potential for technology to support
                with an estimated average real GDP contraction          economic recovery and growth. The section also
                rate of 5.3% for the 37 OECD member countries           looks at the key opportunities and international
                in 2020, South Korea’s real GDP contraction is          best practices for addressing challenges in MENA’s
                estimated to be only 1.1%.9 The EIU also expects        technology ecosystem. Recommended policy
                South Korea to be the first OECD country to see         changes and their likely impacts and timeframes
                its economy recover to pre-pandemic levels, with        are further detailed in a Policy Playbook that
                estimated 3% growth in 2021.10                          accompanies this report. The report concludes by
                                                                        reviewing the importance of a strong technology
                In the MENA region, the EIU estimates that GDP
                                                                        ecosystem for MENA’s long-term growth and
                contracted by 5.9% in 2020, as a result of COVID-
                                                                        productivity and highlights key areas for further
                19’s effects on the region’s economies.11 Disparities
                                                                        exploration.
                in the development of technology ecosystems in
                the region, particularly between GCC countries          Ultimately, this report aims to guide MENA
                and those in North Africa and the Levant, leave         policy makers and private sector stakeholders
                some MENA countries much less able to fully             in designing data-driven and forward-looking
                leverage new technologies to support economic           solutions that will help develop the region’s
                recovery and resilience.                                technology ecosystems and address socio-
                                                                        economic challenges.
                This report will examine how MENA countries have
                managed the challenges posed by the COVID-19
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IN THE WAKE OF THE COVID-19 PANDEMIC

                    SECTION I: THE IMPACT OF COVID-19
                    IN THE MENA REGION
                    COVID-19 has had a greater impact on the global economy than any
                    pandemic before it because of the scale and speed at which it has spread.
                    In the MENA region, the pandemic has increased the strain on healthcare
                    and education systems, adversely impacted key economic sectors, such as
                    tourism and retail, and reduced fiscal stability, particularly in oil-exporting
                    nations.

                   U      nlike past pandemics such as SARS, H1N1,
                          Ebola, and the Zika virus, which had
                    relatively localised socio-economic effects,
                                                                          additional 8.3 million people into poverty amid
                                                                          deepening food insecurity crises,18,19 and high
                                                                          unemployment.20 In 2021, the EIU estimates
                    COVID-19 has had a more global impact. The            that economic recovery will be subdued, with
                    loss in GDP from SARS, for instance, was              regional GDP expected to grow at 2.2%.21 This
                    largely concentrated in East Asian economies          is because global hydrocarbons output and
                    and estimated to be US$54 billion.12 Likewise,        prices are expected to recover only partially
                    during the Ebola outbreak in 2014, West Africa        and the revival of tourist activity is expected to
                    sustained a GDP loss of more than US$53               be slow, remaining below pre-pandemic levels.
                    billion, while the rest of the world’s economies      GCC countries are rolling out vaccinations and
                    remained largely unaffected.13 In the case of         have the capacity to vaccinate most of their
                    COVID-19, however, the EIU estimates that             populations within the year. However, COVID-19
                    the pandemic caused global GDP to contract            cases remain high in countries like the UAE
                    by 4.3% in 2020, which amounts to a total GDP         that have opened their borders to tourists,22
                    loss of roughly US$4.4 trillion in 2020.14 In 2021,   despite the country leading the world in terms
                    the EIU estimates that the world economy will         of vaccinations administered per capita (second
                    recover gradually at a rate of 4.5% due to the        only to Israel).23 This suggests that reopening
                    pandemic’s effects.15                                 will have to be gradual and careful, indicating a
                                                                          longer and more tentative road to recovery.
                    In the MENA region, the economic impact of
                    COVID-19 has been particularly dire, with the
                    EIU estimating a regional GDP contraction
                    of 5.9%, which amounts to a loss of US$288
                    billion.16 GDP losses include an estimated 45%
                    decrease in FDI inflows into the region in 2020,
                    a decline of US$17.8 billion compared with
                    2019.17 MENA’s drop in GDP risks pushing an

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IN THE WAKE OF THE COVID-19 PANDEMIC

                    COVID-19’s economic impact on the MENA region

                            Real GDP in MENA                                                                                          Saudi
                                                 Algeria      Egypt          Iran          Iraq        Israel          Qatar                      UAE
                            (2008-2024)                                                                                               Arabia

                       20

                       15

                       10

                        5

                        0

                       -5

                      -10

                                       2008    2009    2010   2011    2012   2013   2014      2015   2016       2017   2018    2019     2020   2021     2022   2023   2024

                      -15

                    Source: EIU analysis.

                    At sector level, the COVID-19 pandemic has affected countries in the MENA region in five
                    major ways:

                                       1. HEALTHCARE: Increased strain on already weak and overcrowded healthcare
                                       systems due to high rates of COVID-19 infection.

                                       2. EDUCATION: Reduced access to education for almost 100 million children aged
                                       5-17 as well as many tertiary-level students, thus threatening the region’s human
                                       capital development plans.

                                       3. TOURISM: Decreased global travel and demand for tourism, a sector that
                                       generates close to 20% of GDP in many MENA countries.

                                       4. RETAIL: Weakened consumer spending due to job losses and reduced consumer
                                       confidence placing pressure on retail activity.

                                       5. GOVERNMENT: Increased fiscal pressure due to lower private consumption
                                       and business activity as well as lower oil receipts in oil-exporting countries due to
                                       reduced global demand.
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                    COVID-19’s impact on livelihoods in MENA

                    Consumption                 Profits                Employment                       FDI                    Poverty

                      Decline in         Proportion of firms that     Proportion of firms            Loss of FDI          Increase in absolute
                     monthly PMI           expect at least 25%      that expect to cut staff                               poverty headcount
                                           reduction in profit

                    11-17 pts                   40%                        40%                        45%                       8.3M
                    Sources: UN Economic Commission for West Asia; Middle East Economy Watch, PwC 2020; EIU analysis.

                    In the healthcare sector, the pandemic has                       In the education sector, full or partial
                    revealed cracks in MENA’s medical systems,                       closures during the early days of the pandemic
                    particularly in low-income and conflict-affected                 risked derailing the region’s human capital
                    countries. In the region, nearly 5 million people                development plans. The quality of education in
                    have contracted COVID-1924, representing                         many parts of MENA was already weak before
                    5% of all global cases.25 While countries like                   the COVID-19 pandemic. The World Bank’s
                    Saudi Arabia, Iraq, Morocco and the UAE                          Human Capital Index finds that “a child born
                    have seen 1-2% of their populations infected,                    today in MENA will be only 57% as productive
                    smaller states like Qatar and Bahrain have seen                  when she grows up as she would be if she
                    infection rates of 5% and 7% respectively.26,27                  benefitted from complete education and full
                    Despite the variation in infection rates, in                     health.”31 This is largely due to relatively low
                    many MENA countries, weak and overcrowded                        education rates in many MENA countries,
                    healthcare systems are finding it hard to cope                   as well as the poor quality of education. The
                    with COVID-19 patients and typical healthcare                    COVID-19 pandemic risks exacerbating these
                    emergencies. In fragile states, such as Yemen,                   education challenges. According to the World
                    Syria, Libya, Iraq and the Palestinian Territories,              Bank, COVID-19 school closures might increase
                    healthcare systems are grappling with a lack of                  the learning deprivation gap by approximately
                    hospital beds and testing capacity. In Yemen,                    2.5 percentage points in the region. As students
                    only 51% of the country’s health centres remain                  in the region return to their respective places of
                    functional and there are very few testing sites                  learning, it will be important for governments
                    for COVID-19.28 Syrian hospitals are similarly                   to identify how policy options deployed during
                    overburdened due to lost capacity over the years                 the crisis, such as remote learning solutions,
                    and can only conduct 500 tests a day.29 Even in                  can contribute to building an educational
                    richer GCC states, healthcare systems have had                   system that is more resilient to crisis, flexible in
                    to put workarounds in place to cope with the                     identifying and responding to each individual
                    virus. In Dubai, for instance, the health authority              student’s learning needs, and proactive in
                    instructed hospitals to postpone all elective                    protecting the most vulnerable.32
                    and non-urgent surgeries in March 2020, to
                                                                                     In the tourism sector, strict lockdowns and
                    accommodate a potential surge in patients due
                                                                                     social distancing measures in MENA nearly
                    to COVID-19.30
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                    ground economic activity to a halt in 2020. Prior    due to economic uncertainty and job insecurity
                    to the pandemic, tourism accounted for 5.3%          has meant that consumers remain cautious
                    of GDP growth and 6.7 million jobs across the        about spending. According to PwC’s CFO Pulse
                    MENA region. According to the World Travel           Survey conducted in May 2020, 40% of firms in
                    & Tourism Council (WTTC), as of November             MENA are expected to experience at least a 25%
                    2020, 4.2 million jobs were lost or affected in      dip in profits and plan to cut staff.42 Household
                    the region because of the disruption to tourist      expenditure on leisure and education in the
                    activity. The tourism sector alone is responsible    MENA region declined by US$3.5 billion in 2020.43
                    for a US$154 billion loss in GDP in MENA.33 In       Non-food retail sales are estimated to have
                    the first 10 months of 2020, international tourist   fallen by US$7.6 billion in 2020 from US$235
                    arrivals fell by 73% compared to the previous        billion in 2019.44 In 2021, retail sales are expected
                    year.34 The tourism sector in MENA is expected       to grow at a modest 2.7%, slower than the 2019
                    to begin to recover in 2021 with the removal of      pre-pandemic growth rate (5.1%).45
                    travel restrictions. However, a UNWTO survey of
                                                                         Finally, for governments in the MENA region,
                    experts shows that 83% of them expect tourism
                                                                         low economic activity coupled with external
                    in the region to rebound only in the third and
                                                                         price shocks have increased fiscal pressures
                    fourth quarters of the year.35 Surveyed experts
                                                                         on a number of economies. In oil-importing
                    do not anticipate a return to pre-pandemic
                                                                         countries like Morocco, Lebanon and Egypt,
                    2019 levels in MENA before 2022, with a third
                                                                         the sharp decline in non-oil activity, like
                    expecting that this will only happen in 2024 or
                                                                         tourism, and low levels of global trade, has
                    later.36
                                                                         limited government revenue. However, some
                    The decline in tourism activity is expected to       of this pressure has been alleviated by lower
                    have a significant impact on Egypt, Jordan,          oil import bills.46 In oil-exporting countries,
                    Lebanon, Morocco, Tunisia and the UAE,               such as Saudi Arabia and the UAE, where oil
                    where tourism contributes between 10-20%             forms an important component of government
                    of total GDP. In Egypt, for example, the loss        revenue, low levels of economic activity due
                    of expenditure from international tourists           to COVID-19 have reduced global demand for
                    is estimated to represent two thirds of the          oil thus reducing government oil receipts (see
                    total loss in GDP caused by the pandemic.37          Exhibit below).47 The International Monetary
                    In the GCC, where international visitor spend        Fund (IMF) estimates a 7.7% contraction in oil
                    contributes US$90.4 billion to the economy,          GDP in the region, destructive for oil exporting
                    international tourist arrivals fell by between       economies.48 Moreover, while governments have
                    65-80% in 2020, with Bahrain (78%) and Saudi         had to contend with lower revenue prospects,
                    Arabia (74%) the worst hit.38,39 Up to September     they have also had to provide significant levels
                    2020, Morocco’s tourism sector had suffered          of economic support to key sectors. Saudi
                    losses of US$2 billion due to the COVID-19 crisis.   Arabia, for instance, has committed US$48
                    In addition, up to 400,000 tourism-related jobs in   billion in economic stimulus to help its economy
                    the GCC region were affected, compounding an         manage the effects of COVID-19. Similarly,
                    already serious unemployment crisis.41               in July 2020, Morocco announced a US$12.9
                                                                         billion package to stimulate its economy and
                    In the retail sector, a fall in domestic demand
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                    Tunisia announced a US$864 million stimulus                 the economic recovery. Dubai started the
                    package to help manage the effects of the crisis            year by announcing a stimulus package worth
                    in March 2020.49 In 2021 the region’s wealthier             AED315 million on 6th January, its fifth since the
                    economies, particularly in the GCC, will be able            pandemic began.50
                    to continue to provide fiscal stimulus to support

                    Breakeven oil prices and the decline in the oil prices in 2020

                    2019 Fiscal Breakeven Oil Price
                    (US$ per barrel)

                    250

                                         244.3               Oil Price                 2020 Oil Price
                                                             (US$ per barrel)          (US$ 42.2)

                    200

                    150

                    100        106.3
                                                                                92.8
                                                                                                        82.6
                                                      55.7
                                                              52.6                                               67.1
                                                                       48.5                 44.9
                    Source:
                     50     IMF, EIU.

                      0

                             Bahrain      Iran        Iraq   Kuwait    Libya    Oman        Qatar       Saudi    UAE
                                                                                                        Arabia

                    Though many countries in MENA have                          collaborating online using video conferencing.
                    introduced economic stimulus packages                       The next section explores how businesses and
                    to minimise the effects of COVID-19, these                  governments in the MENA region have used
                    countries have also leveraged technology to                 technology across the five sectors discussed
                    mitigate the crisis. For instance, with teams               above to adapt to the changes brought about by
                    working remotely, businesses in MENA                        the COVID-19 pandemic.
                    have sustained day-to-day operations by
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                    SECTION II: EMPLOYING TECHNOLOGY
                    TO MINIMIZE COVID-RELATED
                    DISRUPTIONS AND BUILD RESILIENCE IN
                    KEY SECTORS IN MENA
                    In response to the negative socio-economic impact of the COVID-19
                    pandemic, countries in the MENA region have sought to stimulate growth
                    and provide essential social services by using technology to minimise
                    disruptions in five key sectors: healthcare, education, retail, tourism, and
                    government services. Across these sectors, actors in MENA have leveraged
                    technology to: (1) scale up the use of existing digital apps and platforms
                    in areas where there was previously minimal use, for example, expanding
                    e-learning delivery during COVID-19 lockdowns; (2) provide new digital
                    solutions in areas where alternative technologies proved inadequate, for
                    example, setting up infrastructure to facilitate wholly touchless travel, and
                    (3) introduce digital tools in areas where they were not previously employed,
                    for example, deploying digital contact tracing and diagnosis applications for
                    COVID-19 prevention.

                    T    echnology has played a vital role in many
                         countries’ response to COVID-19, both in
                    terms of employing digital tools to fight the
                                                                        important for the region given their contribution
                                                                        to national GDP (tourism and retail), their role
                                                                        in employing nationals (government services)
                    virus itself and in using technology platforms to   and their importance to the socio-economic
                    cushion the impact on society as the pandemic       wellbeing of citizens and residents (health and
                    persists. This section focuses on how countries     education). Accordingly, building resilience
                    in MENA have used technology to improve             in these five sectors, including through the
                    resilience in five key sectors i.e. healthcare,     use of technology, will be vital for the region’s
                    education, retail, tourism and government           economic recovery.
                    services. These sectors are particularly

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Technology as a tool to build resilience: MENA deployed technology across key sectors to minimize COVID-19
related interruptions

                        Hospitals and clinics have scaled up telemedicine, using it     Governments are using app-based platforms for contact
                        with AI tools to enable contactless COVID-19 diagnosis          tracing to control community transmission
                                                                                        Some hospitals and healthcare facilities are using robots
     Healthcare                                                                         for sanitisation

                        Governments deployed existing or new online learning            Governments provided online repositories of
                        platforms to ensure continued schooling                         learning content and educational resources for
      Education                                                                         teachers and students

                        Shift to online shopping, as brick and mortar stores in the     Use of robotics for contactless delivery
                        region have started developing/ bolstering their online
                        presence
        Retail

                        Tourism and travel industry is innovating to resume travel      Virtual reality experiences from popular tourist
                        with minimal contact and risk of transmission by installing,    destinations have been made available to substitute
                        for example, self-cleaning escalator handrails, touchless       physical tourism
      Tourism           elevator buttons and contactless passenger screening

                        Governments launched comprehensive platforms and used           Governments have set up online information and support
                        their existing platforms to enable citizens’ access to a wide   platforms to provide vital business information
     Government         range of government services
      Services

Source: EIU analysis.

                              Healthcare
                              In the early weeks of the COVID-19 pandemic,                 which proved effective in limiting the spread
                              it became clear that healthcare systems, even                of the virus in the region, according to the
                              in some of the most advanced economies in                    OECD report. Quarantine rules were enforced
                              the world, were ill-prepared for the shock of a              by incorporating severe penalties for non-
                              highly communicable virus.52 An OECD report                  compliance, ranging from heavy fines to prison
                              notes that GCC countries were more efficient                 sentences, in countries such as Jordan, Saudi
                              than other countries in the MENA region in                   Arabia and the UAE, which helped in controlling
                              controlling the spread of the virus. Despite                 the spread of the virus.53
                              varying levels of healthcare system preparedness
                                                                                           GCC countries were more prepared to
                              across MENA, the region’s early response to
                                                                                           manage the COVID-19 virus, due to previous
                              COVID-19 involved strict containment measures,

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                    investments in healthcare infrastructure and         assess the likelihood of their having contracted
                    technologies, which, along with efforts to           the COVID-19 virus. One example of this is
                    increase medical staff, significantly improved       the UAE government’s Virtual Doctor chatbot
                    the quality of healthcare services in the region.    service. 57 The chatbot asks people questions
                    In an assessment of COVID-19 preparedness            relating to their travel history, the possibility of
                    published by the WHO in March 2020, where            having come in contact with someone who has
                    countries were ranked on a scale of 1 to 5 (with 1   travelled and is sick or with someone known
                    meaning no capacity to respond and 5 meaning         to have COVID-19. It also asks if the person is
                    sustainable capacity), all GCC countries, except     suffering from specific symptoms. Depending
                    Qatar, scored either 4 or 5.54 Technology played a   on the person’s answers, the chatbot will deduce
                    key role in these efforts.                           if the person is at risk and connect him/her to
                                                                         a doctor through the same service. To scale up
                    Contactless diagnosis using telemedicine
                                                                         telemedicine, the UAE has begun working with
                    and AI tools: Due to the high communicability
                                                                         its national telecom provider Du to establish
                    of the COVID-19 virus, many hospitals and clinics
                                                                         MENA’s first virtual hospital, which will include
                    in the MENA region scaled up their telemedicine
                                                                         a telemedicine app and smart monitors that will
                    services. Through virtual “visits”, a medical
                                                                         enable patients to receive remote care.58
                    practitioner could assess a patient for symptoms
                    of COVID-19 and determine the need for further       Increasingly, companies and governments in
                    testing and treatment. Such services also served     MENA have been deploying AI tools to improve
                    to reduce crowding at healthcare facilities, thus    diagnosis and help mitigate the spread of
                    lowering the risk of patient exposure to people      COVID-19. Countries like the UAE, Saudi Arabia
                    infected with the virus.                             and Egypt have begun to adopt big data and AI
                                                                         in healthcare, where they are expected to play a
                    In April, Dubai-based private healthcare
                                                                         major role, not just in diagnostics but also supply
                    entities, Aster DM Healthcare and HealthHub
                                                                         management.59 For example, Nabta Health, an
                    by Al-Futtaim, introduced their own video-
                                                                         emerging Emirati healthcare company, is using AI
                    conference-style consultations . Both services,
                                                                         to provide COVID-19 risk assessments, identify
                    currently free, are open to patients who require
                                                                         symptoms and diagnose underlying health
                    non-emergency care.55 In Dhahran, Saudi Arabia,
                                                                         conditions.60,61 These advanced technologies
                    Johns Hopkins Aramco Healthcare, launched
                                                                         have already played a role in distributing the
                    primary care and mental health video sessions
                                                                         UAE’s health supplies during the pandemic. An
                    through their platform MyChart Video Visit.
                                                                         example in this case is the use of a self-driving
                    The platform offers patients an option to
                                                                         vehicle, which uses AI to distribute personal
                    conduct virtual, face-to-face interactions with a
                                                                         protective equipment, including masks, gloves
                    primary care physician from the comfort of their
                                                                         and sanitiser among residents.62
                    homes.56
                                                                         Contact tracing using app-based platforms:
                    In addition to online consultations with medical
                                                                         Contact tracing is the process of identifying all
                    professionals, a number of healthcare providers
                                                                         the people in an infected person’s network who
                    in MENA have introduced online chatbots, which
                                                                         may need to be tested or quarantined in order
                    individuals can use to share symptoms and

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                    to contain the virus and reduce community                          also rolled out a contact-tracing app, called
                    transmission (see Exhibit 4). To perform                           EHTERAZ. Developed by the Ministry of Interior,
                    contact tracing, a number of countries in the                      its use is compulsory for all citizens leaving
                    MENA region have developed new technology                          their homes. The app uses GPS and Bluetooth
                    platforms to help them track and prevent the                       technology to track COVID-19 cases.65
                    spread of the virus. Saudi Arabia, for instance,
                                                                                       Use of robotics for sanitisation: Robots are
                    has introduced a social distancing app, called
                                                                                       being used by a number of countries in the
                    Tabaud, which notifies people if they came
                                                                                       region. For example, The Dubai Health Authority
                    in contact with an individual infected with
                                                                                       (DHA) has introduced eight “smart” robots to
                    COVID-19.63 The government of Morocco has
                                                                                       sterilise its government-run hospitals and clinics.
                    launched its own contact-tracing app, Wiqaytna,
                                                                                       These robots, created by Danish company UVD
                    developed by the Ministry of Interior. The
                                                                                       Robots, are able to complete the exhaustive
                    app uses bluetooth technology and notifies
                                                                                       sterilisation of a room in 10-15 minutes, making
                    users if they come into prolonged contact
                                                                                       the process of infection prevention and control
                    with an individual who has tested positive for
                                                                                       highly efficient.66
                    COVID-19.64 The government of Qatar has

                    How contact tracing helps stop community transmission of COVID-19

                                               Contact tracing begins once a positive
                                               case is identified. Public health authorities
                                               will then identify every person who has
                                               been in close contact with the patient
                                               recently.

                                    This can be done by either asking
                                    the patient or through apps that
                                    track interpersonal proximity.

                                            This allows health authorities to intervene and prevent further
                                            infection, asking contact to monitor symptoms and even self-isolate.
                                            It enables them to track high-risk individuals and identify their
                                            contacts. Without testing and tracing, community transmission
                                            would continue unabated.
                    Source: EIU analysis.

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                          Telemedicine requires people to have high-            MENA is a mature market in this respect, with
                          speed internet connections. Currently, internet       smartphones comprising 62% of all mobile
                          penetration in MENA averages 63%, ranging             subscriptions.68 In the GCC, penetration is 79%,
                          from 80% in some GCC countries and Lebanon,           with North Africa at 54% and the rest of the
                          to less than 50% in parts of North Africa and         Middle East ranging between 45% and 61%.69
                          Iraq, with high rates of access concentrated          Both telemedicine and contact tracing raise
                          in urban areas.67 To scale real-time sharing of       concerns over personal and data privacy, as
                          health data, 4G, and eventually 5G, services          these systems collect personal information and
                          will need to be more widely available in MENA         a number of these apps don’t include privacy-
                          countries. For contact tracing, a large percentage    preserving mechanisms, like anonymising data
                          of the population must also have smartphones.         or reporting the data in an aggregated format.70

                          Education
                          According to UNICEF, 110 million school-aged          Grade 10 students to help them access digital
                          children in the MENA region stayed at home            resources.74,75 The pandemic has renewed MENA
                          because of school closures.71 To limit further        governments’ commitment to online education
                          disruptions to student learning, governments          delivery.
                          and academic institutions in MENA have
                                                                                Online learning platforms: Governments
                          expanded the number of online educational
                                                                                across the MENA region have responded to
                          applications, platforms and repositories
                                                                                the pandemic by upgrading existing e-learning
                          available to help parents, teachers and school
                                                                                platforms or setting up new ones. The UAE, for
                          administrators continue to educate students.
                                                                                instance, put its new online learning system
“Due to the lockdown,
                          The use of online learning tools during the           “In This Together Dubai” into action in the first
we had to stop
                          pandemic builds on previous government                weeks of the crisis.76 Their Ministry of Education
schools in the
                          investment in digital education. Governments          also launched the Alef platform, which
middle of the second
                          in the region were supporting investments in          specialises in providing lessons in mathematics,
semester. Within four
                          e-learning before the start of the pandemic.72        the Matvak platform, aimed at providing early
days, we succeeded
                          For example, investment raised by education           childhood education, and the Nahla and Nahil
in populating a new
                          technology startups in MENA grew from just            platforms, which specialise in raising Arabic
platform called
                          US$2 million in 2017 to more than US$23 million       reading skills. These platforms will be available
study.ekb.eg where
                          in 2020.73 Before the lockdown, only 30% of           to all students in both the government and
students could access
                          higher education students took online courses in      private education systems. The UAE’s Ministry
all the resources free
                          the region. During the pandemic, this shot up to      of Education has decided to complete the
of charge”
                          100% of university students. The UAE Ministry of      2019/2020 academic school year online, through
Ahmed Daher, Deputy
Minister for Education.   Education is expected to expand its investment        its e-learning platforms.77
                          in e-learning initiatives by 60% to a value of
                                                                                Egypt continued the school year through a
                          US$7.1 billion in 2023. As part of its Vision 2030,
                                                                                multitude of national online platforms adopted
                          Egypt’s Ministry of Education connected 2,530
                                                                                or launched by the Ministry of Education.
                          secondary schools to fibre-optic internet in 2018,
                                                                                According to Ahmed Daher, Deputy Minister
                          with wireless access points in every classroom,
                                                                                for Education, “Due to the lockdown, we had
                          and distributed 700,000 tablets among
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                    to stop schools in the middle of the second          Online repositories of learning content: A
                    semester. Within four days, we succeeded in          number of governments in MENA have also
                    populating a new platform called study.ekb.eg        launched online knowledge repositories. The
                    where students could access all the resources        UAE Ministry of Education has launched an
                    free of charge”. The platform was the new site of    online library that allows teachers and students
                    the Egyptian Knowledge Bank, first launched in       to view and interact with the learning curriculum
                    2016, one of the largest online knowledge hubs.      electronically and to download electronic copies
                    It gives students, researchers and the public        of books.81
                    access to “aggregated and curated content in
                                                                         Despite the noticeable expansion of online
                    different sciences and humanities from 30 major
                                                                         learning platforms in MENA to ensure education
                    publishers all over the world”. It is tailored to
                                                                         continuity during the COVID-19 pandemic, the
                    provide learning objects and digital material for
                                                                         unplanned and rapid shift to e-learning has
                    the curriculum, providing content by grade level
                                                                         revealed glaring gaps in the region’s education
                    (kindergarten through secondary) and subject.78
                                                                         system preparedness. Students who are unable
                    “In another 10 days, we introduced a social
                                                                         to afford high-speed internet connections or
                    learning platform called Edmodo’’, explained
                                                                         the devices necessary to participate in online
                    the Deputy Minister. The edtech platform was
                                                                         classes have been excluded from e-learning
                    selected to deliver remote instruction to the K-12
                                                                         activities.82 Countries such as Lebanon and
                    student body. Illustrating how public-private
                                                                         Egypt have sought to address this issue by
                    collaboration can generate solutions, the Deputy
                                                                         providing students with free access to online
                    Minister further explained, “We engineered the
                                                                         platforms, free internet bundles to compensate
                    business implementation for this use-case for
                                                                         for increased internet usage, and SIM cards at no
                    Edmodo, and we tailored it for the Egyptian
                                                                         cost. 83 As at June 2020, 13.5 million students and
                    education engine”. “We registered 18 million
                                                                         1.3 million teachers across Egypt had registered
                    student accounts and have 11 million students
                                                                         on the Ministry of Education’s platform.84 The
                    actively using the platform”.79 In Saudi Arabia,
                                                                         government is providing servers, screens
                    the government has launched a new national
                                                                         and tablets to 25,000 public schools.85 An
                    online platform targeting 6 million K-12 students
                                                                         agreement with cellular providers has allowed
                    in public schools. Bahrain restructured its
                                                                         the government to provide free access to its
                    EduNet portal and Jordan introduced an entirely
                                                                         Knowledge Bank educational resource through
                    new platform, Darsak (“your course”), to deliver
                                                                         a form of zero-rating, whereby activities on
                    courses online. Qatar announced the activation
                                                                         the site require zero data.86 The online system
                    of an online platform using video lessons to
                                                                         has also placed immense pressure on working
                    provide early childhood education (up to third
                                                                         parents, who have had to balance guiding their
                    grade). In Morocco, the National Documentation
                                                                         children on new platforms alongside work
                    Centre launched a platform, “ABHATOO”, to
                                                                         commitments.87
                    provide educational content by subject area,
                    addressing different grade levels in accordance      MENA governments and universities that were
                    with the national curricula.80                       previously reluctant to formally recognise

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                    online education are now setting up online            so there were only an average of 15 students in
                    courses. While online education can’t replace         a classroom, allowing them to practice social
                    classroom learning, the accelerated use of            distancing measures. According to Ahmed
                    blended learning methods (which combine the           Daher, Deputy Minister of Education, “Students
                    advantages of in-person learning with online          are expected to attend class at home, and
                    technology tools), can help close literacy, digital   teaching continues from there in the classroom:
                    and learning gaps. As the pandemic eases and          the teacher does not revise the material again”.
                    countries in MENA begin to see students return        This new level of trust and reliance on learning
                    to the classroom, they can ensure long-term           at home may be the lasting impact of the
                    resilience in education by developing a holistic      pandemic, even when all students return to the
                    learning ecosystem that integrates classroom          classroom.
                    learning with remote learning solutions.88 Egypt
                    reopened schools in October by adopting a
                    blended learning approach, where students were
                    divided into two groups and asked to come to
                    class every alternate day. This reduced numbers

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     Case Study 1
     How Saudi Arabia’s proactive ICT policies enabled
     rapid e-learning adoption

                        Saudi Arabia’s successful response to the educational challenges brought about by
                        COVID-19 was largely due to existing efforts towards widespread adoption of e-learning.
                        Proactive ICT policies and the 2019-2023 ICT strategy had emphasised e-learning and facilitated
                        its growing adoption.89

     Impact of the pandemic                                        technologies at all levels of education for years, in
     When the pandemic hit, Saudi Arabia’s schools were            response to growing demand for education. To increase
     among the earliest to close, shutting on March 8th. The       the quality of these virtual classrooms and ensure students
     majority of schools and universities developed e-learning     stay connected, the Saudi Research and Innovation
     programmes so that students could continue their              Network (Maeen) partnered with the Integrated Telecom
     education online.                                             Company to “increase the data quota between some of the
                                                                   Kingdom’s universities and King Abdulaziz City for Science
     Innovative response                                           and Technology free of charge”.94
     Saudi Arabia launched a comprehensive online educational
     system in March, with 20 TV channels, a YouTube channel       Future strategy
     and an iEN National Educational Portal.90 The use of          The Kingdom has already allocated                   19%
     television was to ensure that students who didn’t have        nearly 19% of its 2020 federal budget
     sufficient digital access or skills were not excluded. The    to education, building the required
     government had insight into this challenge from its efforts   infrastructure necessary to increase
     nearly a decade ago to promote virtual education, where       resilience. Saudi Arabia’s ICT Strategy
     nearly 50% of students and teachers were dissatisfied,        2019-2023 placed considerable focus on e-learning,
     and computer literacy was a key concern.91 The country        highlighting the Kingdom’s plan to further develop its
     was better prepared due to this experience, and many          digital ecosystem and attract Ed-tech start-ups.
     of the kingdom’s leading universities92 had the necessary
     infrastructure and training to roll out e-learning for
     all students.93 The Ministry of Higher Education had
     been advocating for the adoption of communication

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                    Retail
                    Movement restrictions due to COVID-19 forced              and have been growing at a rate of 30% annually
                    consumers to switch to online retail channels.            since 2014, twice the rate of the rest of the
                    Retailers in the MENA region had to quickly               region. The UAE has developed several strategic
                    establish or expand their online presence by              projects with an eye to bolstering e-commerce
                    developing websites and mobile applications to            in the region. For instance, the 2.1-million square
                    stay connected to consumers.                              foot Dubai CommerCity is the first free zone
                                                                              dedicated to e-commerce in the region. Its goal
                    Within the MENA region, countries such as
                                                                              is to create an environment that encourages
                    the UAE and Saudi Arabia were ripe for rapid
                                                                              innovation and attracts foreign investment in
                    e-commerce expansion (see Exhibit below).
                                                                              e-commerce.96
                    GCC countries and Egypt, account for 80% of
                    the e-commerce market in the MENA region,

                    UAE leads the way in e-commerce penetration in MENA

                     E-commerce penetration
                     (as % of retail)
                     5

                     4
                                                               4.2

                                                                      3.8
                     3

                                                 3

                     2                                                                2.5

                                1.9

                     1
                              MENA            GCC             UAE    Saudi           Egypt
                                                                     Arabia

                     0

                    Source: Bain and Company, 2017; EIU analysis.

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                    Shift to online shopping: During the pandemic,       operates in 38 countries across the Middle East,
                    the shift to e-commerce in the region has            Africa and Asia, is set to use robots to pack
                    been exponential.97 This is illustrated by PwC’s     online grocery orders in Saudi Arabia and the
                    Global Consumer Insights Survey, which found         UAE. Carrefour’s customers will be able to place
                    that 51% of consumers in MENA were buying            orders via its online platform and Takeoff’s (a
                    groceries “mainly” or “exclusively” online/          US-based technology company) automated
                    by phone and that 92% are likely to continue         technology, will ensure that robots within the
                    shopping online.98 To meet this demand, brick        Micro-Fulfilment Centres (MFCs) fulfil the order
                    and mortar stores in the region have developed       in less than 5 minutes for pick-up or delivery.103
                    or bolstered their online presence. Majid            The MFCs will process Carrefour’s online
                    Al-Futtaim Retail, the leading shopping mall,        orders to replace the manual picking method
                    communities, retail and leisure pioneer across       currently used. Dubai has also seen the opening
                    the Middle East, accelerated the launch of its       of a cafe run by Robots. Robo cafe, located in
                    online marketplace platform and expanded its         Dubai’s festival city mall, runs with zero human
                    last-mile delivery capacity with new transport       intervention and uses robots to take orders,
                    partnerships to meet increased online orders         prepare and deliver food orders.104
                    in UAE.99 According to Hans Weiss, the CEO of
                                                                         Pandemic-related restrictions and concerns
                    Majid Al-Futtaim Retail, the online platform had
                                                                         about safety have helped grow e-commerce in
                    “witnessed 400% growth in the number of orders
                                                                         new markets, however, building on this growth
                    placed (in the retail sector) and 300% growth in
                                                                         requires leaders in the region to facilitate brick
                    online sales between March-May 2020 versus the
                                                                         and mortar retailers’ expansion online first by
                    same period in 2019.”100 Another example of this
                                                                         strengthening electronic transactions systems,
                    move to e-commerce by brick and mortar stores
                                                                         the keystone of e-commerce.105 Countries
                    is Emaar Malls in the UAE, which partnered with
                                                                         like Saudi Arabia and Egypt have made some
                    Noon, a Dubai- and Riyadh-based e-commerce
                                                                         progress by setting up regulatory frameworks
                    company, to open The Dubai Mall virtual store.
                                                                         to enable electronic payments106, but in many
                    To keep up with demand for online-shopping,
                                                                         MENA countries, few policies or programmes
                    a number of e-commerce stores expanded
                                                                         exist to support electronic transactions and
                    their offerings during the pandemic. Dubai-
                                                                         e-commerce expansion. The transition to
                    headquartered Talabat launched a 30-minute
                                                                         e-commerce has been especially difficult for
                    door-step grocery delivery service “Talabat Mart”
                                                                         small businesses – 67% of small and medium
                    in some of its markets, including Kuwait and the
                                                                         enterprises in the GCC region do not have
                    UAE101, and is expanding the same to Egypt by
                                                                         e-commerce platforms, according to a survey
                    the end of this year. Food delivery platforms like
                                                                         by logistics firm UPS.107 Lack of awareness, high
                    Deliveroo, Otlob in Egypt and Careem NOW
                                                                         tariffs and complex regulatory regimes make
                    in Saudi Arabia are offering groceries on their
                                                                         it difficult for startups to get established, and
                    platforms alongside the option to order meals
                                                                         existing small businesses to compete with
                    online from restaurants.102
                                                                         multinational e-commerce operators.
                    Contactless-delivery: The region is also
                    exploring the use of robotics for contactless
                    delivery. Carrefour, a hypermarket chain that
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     Case Study 2
     A developed fintech market enabling e-commerce
     in Bahrain
                      Bahrain’s developed fintech market has acted as a key enabler in facilitating the
                      expansion of e-commerce. Fintech solutions, such as digital wallets and payment
                      gateways, are a key part of the ecommerce infrastructure, providing a digital alternative for
                      making essential purchases when in-store shopping was restricted during the pandemic.

     Context and pandemic preparedness
     Bahrain is home to the oldest financial centre in the Gulf,
     and has been working to develop financial technology
                                                                                  BenefitPay, Bahrain’s
     for years. In 2014, two licenses were introduced that
                                                                                  national smartphone
     allowed entry of non-banking companies into banking
                                                                                  payment app saw:
     services. In 2017, the Central Bank of Bahrain announced
     new regulations to create a regulatory sandbox that               • Usage increase by 1000%
     would allow fintech firms to experiment with banking
                                                                       • 28% of the Bahraini population
     ideas and solutions. The Bahrain Economic Development
                                                                         registered on the app
     Board entered a partnership with Singapore Fintech
     Consortium and Dubai-based Trucial Investment Partners            • Remittances sent increase by
     to develop the ecosystem and regulatory framework for               1257% in March 2020 alone
     the Kingdom.108                                                   • Remittances total of US$275
                                                                         million3
     Pandemic response
     The Kingdom strived to emphasise fintech as the new
     norm once the COVID-19 pandemic hit, introducing
     policies such as reducing the minimum value needed to           Future implications
     make a transaction on BenefitPay, the Kingdom’s national        Across the region, there is immense potential for further
     smartphone payments app. As a result of these policies,         development of fintech. Rapid growth of mobile phone
     BenefitPay saw usage surge by over 1000%, with more than        penetration is creating a market for mobile payment
     28% of the Bahraini population registered on the app.109        solutions and other fintech products. However, the
     The national electronic wallet reported a 1257% increase in     pandemic has also shown that fintech is an ecosystem
     the number of remittances sent through its Fawri+ service       enabler that can unlock further technological adoption and
     in March alone, amounting to almost US$275 million.110 The      development in e-commerce.
     Ministry of Industry, Commerce and Tourism also launched
     a ‘virtual mall’ in April. The digital platform, with payment
     gateways to facilitate online purchases, was launched
     with more than 24 shopping categories for consumers,
     including baby needs, electronics, homewares, fashion,
     and books and stationery, and over 100 retailers registered
     in the mall.111

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                    Tourism
                    Tourism is a major economic sector in many           accurate contactless temperature measurement.
                    MENA countries and has become a strategic            The airport is also using an AI-powered face
                    component of the diversification plans of oil-rich   mask detection system, which can automatically
                    economies in the region. With health and safety      detect if someone is not wearing a mask within
                    remaining a top concern for many travellers,         the airport.113
                    the tourism industry in MENA has had to
                                                                         Airlines in the region are also using technology
                    introduce innovations to manage tourist travel,
                                                                         driven interventions to ensure passenger safety.
                    not only to minimise current risks, but also to
                                                                         As the UAE’s Etihad airlines resumed flights to 58
                    prepare for post-COVID-19 travel. This process
                                                                         destinations in July 2020, the airline introduced
                    of adjustment and adaptation has required
                                                                         a COVID-19 risk-assessment tool powered by AI
                    the deployment of an array of technologies to
                                                                         that was developed in partnership with Medius
                    prevent transmission of the COVID-19 virus on
                                                                         AI, an Austrian health-technology company. The
                    mass transit systems and to ensure that national
                                                                         22-question assessment reportedly estimates
                    travel protocols meet new international and
                                                                         the probability that a passenger may have
                    country-specific requirements.
                                                                         contracted COVID-19, thus encouraging the
                    Touchless travel: Touchless data-entry such          passenger to make informed decisions about
                    as gesture control and touchless document            whether or not to travel.114
                    scanning are being tested at airports across
                                                                         Virtual travel: Virtual reality (VR) technology
                    the region. Abu Dhabi International Airport
                                                                         has been used by airlines and tourism boards
                    stands out in the region for installing self-
                                                                         for many years to market travel destinations to
                    cleaning escalator handrails, replacing
                                                                         customers. Now, VR is being used to make arts,
                    elevator buttons with touchless alternatives
                                                                         culture and new destinations more accessible
                    and screening passengers upon arrival using
                                                                         to people who aren’t able to experience these
                    contactless technology. The technology,
                                                                         due to movement restrictions. These tools
                    designed by Australian technology firm Elenium
                                                                         are expected to complement real time travel
                    Automation, helps identify passengers with
                                                                         experience once travel restrictions are lifted.
                    medical conditions, potentially even those with
                                                                         For example, a popular online platform for arts
                    early stages of COVID-19 by monitoring the
                                                                         and culture offers Artificial Reality (AR) and
                    temperature, heart rate and respiratory rate
                                                                         VR views from popular tourist destinations in
                    of any person using an airport touchpoint.112
                                                                         UAE. It allows users to access content from
                    Hamad International Airport in Doha has
                                                                         more than 2000 leading museums and archives
                    also been digitally transformed. The airport
                                                                         around the world at just a click of a button.115
                    has introduced fully autonomous sanitisation
                                                                         Jordan is using the same platform to showcase
                    robots, ultraviolet disinfection tunnels to
                                                                         a virtual photography tour of Petra. The free-to-
                    disinfect passenger luggage, as well as baggage
                                                                         use platform allows people to have immersive
                    trolleys and tubs. Furthermore, Doha airport
                                                                         experiences through high-resolution images,
                    provides thermal screening cameras to measure
                                                                         videos and virtual reality, and to explore
                    passengers for fever and smart screening
                                                                         artwork and cultural artefacts from top cultural
                    helmets for staff, which use AI to provide
24                                                                                  © The Economist Intelligence Unit Limited 2021
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