International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (700-704), Month: October 2019 - March 2020, Available at: www.researchpublish.com
The Financial Technology Revolution: Opportunities and Challenges in MENA Countries Wijdan Daham Aftan
Abstract: The countries in the region have all the components they need to move into the digital future. Its welleducated youth have adopted new digital and portable technologies, but this is still in its infancy, and the region's youth face obstacles to putting technology for productive use. The challenge for the region is to create the conditions for these signs to flourish. The key is that MENA countries become “learning communities”, which could lead to an active digital economy. A strong push must be made to seize the opportunities offered by the region's digital economy. Policymakers will need to work on multiple fronts, taking advantage of all available tools. The earlier this began, the greater the chance of today’s youth to overcome economic exclusion, and have more opportunities to realize their full potential and that of their region. This article outlines the principles of the new digital economy for the MENA region that embraces innovation and entrepreneurship. Keywords: new digital economy, economic exclusion, MENA countries.
1. INTRODUCTION The countries in the region have all the components they need to move into the digital future. Its well-educated youth have adopted new digital and portable technologies, but this is still in its infancy, and the region's youth face obstacles to putting technology for productive use. The challenge for the region is to create the conditions for these signs to flourish. The key is that MENA countries become “learning communities”, which could lead to an active digital economy. A strong push must be made to seize the opportunities offered by the region's digital economy. Policymakers will need to work on multiple fronts, taking advantage of all available tools. The earlier this began, the greater the chance of today’s youth to overcome economic exclusion, and have more opportunities to realize their full potential and that of their region. This article outlines the principles of the new digital economy for the MENA region that embraces innovation and entrepreneurship. While overall growth appears strong, the pace of economic recovery in the region remains slow. Challenges remain including the slow pace of reforms, the temptation to return to pro-cyclical fiscal policies in the wake of high oil prices, high debt levels and high unemployment rates among the youth and the women - and if not addressed, they can discourage economic recovery and hinder Long-term growth prospects in the region. If the countries of the region were to accelerate growth and create jobs for millions of unemployed youth, they could not put their hopes in pursuing the traditional development path based on industrial exports. Instead, it will have to develop a digital economy that benefits from a young, educated workforce. This will require, first and foremost, the adoption of new technologies and even the provision of “digital public goods”, such as regular broadband Internet solutions and digital payment solutions. The economic growth in the MENA region was expected to rise to 4.1% in 2018 from an average of 0.2% in 2017. This moderate recovery in the region's growth reflects the positive impact of reforms and economic stabilization policies taken in many countries in parallel with the recent rise in oil prices and external demand for crude. The economic growth in the region was also expected to improve modestly to 6.2% in 2019-2020. The oil exporters will benefit greatly from rising the oil prices and external demand for crude, which is likely to remain high, as well as domestic reforms. The oil importers are expected to benefit from reforms, increased trade with Europe and China, and the financial flows from the oil exporters in the Middle East and North Africa.
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