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SPS Automation GCC: the Age of Digitalization Is Here

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SPS Automation GCC: the Age of Digitalization Is Here Confidential | August 2019 GCC: The Age of Digitalization is Here Prepared for: SPS Automation www.aranca.com GCC: The Age of Digitalization is Here Key topics covered What is the current scenario of ICT development and digital competitiveness in GCC? How will improving digital competitiveness help GCC? What are the national digitalization programs and smart initiatives planned and/or implemented by governments in GCC? Which are the digital transformation focus areas for businesses in GCC? What are the key things to consider to ensure steady progress in this transformative journey? Report 1 GCC: The Age of Digitalization is Here l SPS Automation l Confidential l August 2019 GCC countries’ relatively mature ICT infrastructure can act as a foundation for a transformative journey involving the region’s economy ICT Development Index1 Country Score Factors Driving High ICT Development in GCC 2017 | Figures in Units (Score) 10 . GCC region is endowed with a mature telecom 9 market, with high internet bandwidth speed and 7.52 7.60 8 7.21 7.21 mobile penetration levels. On the back of a highly 7 6.67 6.43 developed telecom infrastructure in the region, web- Score 5.98 6 and mobile app-based services have strong ICT potential to access the market. 5 4.26 Country Infrastructure 4 3 2 . Internet usage in the region is high due to 1 consumption of data-intensive multimedia and 0 applications. The governments’ push for 5G and Developed Developing Bahrain Qatar United Saudi Oman Kuwait broadband is expected to provide a strong Countries Countries Arab Arabia (Global) (Global) Emirates impetus for creation of bandwidth-heavy applications that fulfil personal and commercial Internet needs. 1 The ICT Development Index seeks to capture indicators of a country’s ICT access, use, and Usage skills such as mobile cellular penetration, internet use, and gross tertiary enrollment. A relatively mature ICT infrastructure can act as a catalyst to modernize GCC’s industrial landscape, which faces economic risk due to over-dependence on exports of oil and other natural resources for fueling its economy *The Arab region includes all GCC countries such as Saudi Arabia, the UAE, Qatar, and other Arab-dominated countries in North Africa and West Asia. Source: IMD World Competitiveness Center, International Telecommunication Union, Arab Digital Economy Conference Report 2 GCC: The Age of Digitalization is Here l SPS Automation l Confidential l August 2019 So far the region has lagged behind in digital competitiveness due to existing knowledge and technology – related challenges Digital Competitiveness2 Country Score Factors Impeding Digital Competitiveness in GCC 2018 | Figures in Units (Score) 100 100.0 99.4 97.5 . GCC countries lag behind in digital 90 86.2 competitiveness as they have traditionally not focused on R&D, leading to limited development 78.9 80 of knowledge in the region. Country Score Knowledge 70 61.9 60 . The region’s regulatory and technological 50 USA Singapore Sweden United Arab Qatar Saudi Arabia framework is in its nascent stage with scope for Emirates improvement in ease of starting business and contract enforcement laws. 2Digital competitiveness seeks to capture a country’s transformation based on its digital know- how, enabling technological factors, and transformation preparedness. Technology Improvement in digital competitiveness can boost the Arab* region’s GDP by up to USD 0.3 trillion annually, benefiting both government as well as businesses *The Arab region includes all GCC countries such as Saudi Arabia, the UAE, Qatar, and other Arab-dominated countries in North Africa and West Asia. Source: IMD World Competitiveness Center, International Telecommunication Union, Aranca Analysis Report 3 GCC: The Age of Digitalization is Here l SPS Automation l Confidential l August 2019 High digital competitiveness will enable GCC countries to diversify into new markets, improve industrial efficiency, productivity . GCC’s dependence on exports of natural resources, especially oil and gas, makes its economy highly vulnerable to commodity price fluctuation. As the world transitions away from oil . and gas towards renewable sources for GCC can use its access to oil and gas energy needs, economic diversification natural resources and seek to unlock is imperative for GCC. value downstream in industries such as plastics. Digitalization can help GCC foray into . new non-oil sectors through the use of By leveraging technologies such as 3D analytics and automation and by printing, GCC can manufacture high- transforming into a knowledge economy. tech downstream products at low cost and move on to dominating this sector. Efficiency and Productivity . The move would enable GCC to utilize its available natural resources to maximum potential. Digitalization can help reduce industrial operating costs by shortening project cycle times, downtime, and the need for manual monitoring of assets. The gains in efficiency and productivity can thus help GCC’s traditional oil and gas industry to protect profits despite the low oil prices. Report 4 GCC: The Age of Digitalization is Here l SPS Automation l Confidential l August 2019 Taking cognizance of the benefits of digital transformation, governments of various GCC countries have launched national programs in this regard Bahrain's Information & eGovernment Authority seeks to modernize the The Saudi Vision 2030 and National government and private sector through Transformation Program aim to achieve adoption of technologies such as cloud operational excellence, improve economic computing, blockchain, and AI. drivers, and enhance the standard of living by implementing digital infrastructure projects. The UAE government’s Centre of Digital Innovation (CoDI) is an initiative aimed at building a smarter and digitally transformed nation. It has launched various programs, such as Virtual Health Lab and UX Lab, to foster innovation. The center also undertakes R&D activities The New Kuwait 2035 Vision aims to focused on AI and the Fourth Industrial boost digital innovation across different Revolution (4IR), including robotics and sectors, with focus on key technologies 3D printing. such as AI, machine learning, IoT, advanced analytics, and blockchain. Other initiatives such as Expo 2020 Dubai, UAE Strategy for Artificial Intelligence, and Dubai’s Smart City support the platform for digital innovation. Qatar’s Smart Nation Program was Oman’ digital initiative (eOman) plans to launched with the objective of developing achieve digital transformation by creating ICT infrastructure. It focuses on opportunities in the e-government and e- technology and innovation in five sectors: services space, facilitating IT transportation, logistics, environment, development. healthcare, and sports. Report 5 GCC: The Age of Digitalization is Here l SPS Automation l Confidential l August 2019 The push for transformation has prompted governments in GCC countries to implement various smart initiatives to directly benefit citizens Smart Government Smart Healthcare Smart Tourism (Applications and Open Data Platforms) (IoT, Robotic Surgery, Applications) (Augmented Reality, IoT, Blockchain) GCC governments have developed applications The UAE has successfully mobilized robots to Dubai Culture and Visit Abu Dhabi are award- such as Dubai Now, MyGOSI and Kaharama to perform complicated procedures such as heart winning smartphone apps developed to offer a provide one-stop access to government services surgeries, hysterectomies, bariatric surgeries, digital touring experience via augmented reality. including utility bill payment, filing suggestions and knee surgeries. The country has also Qatar’s Augmented City application aims to use and complaints, and enquiring about social adopted robotic dispensing at some of its location information and video recognition to security application and status. pharmacies, which helps eliminate human errors provide interesting content and offers. in the procedure. GCC countries are still at a nascent stage of Qatar plans to offer healthcare-on-demand GCC is focusing strongly on improving its tourism open data dissemination. Countries such as the through applications such as doctor finder, sector and to attract millions of visitors annually. UAE and Qatar publish data sets in machine automated appointment scheduling, virtual Technology-based initiatives such as unified readable format, with the UAE, as an example, consultation and digital checklist to diagnose travel passes and blockchain-enabled loyalty publishing more than 1,000 open data sets. symptoms. programs aim to support these tourism targets. Report 6 GCC: The Age of Digitalization is Here l SPS Automation l Confidential l August 2019 Similarly, several key players in important business sectors in this region too have started to focus on digital transformation initiatives (1/2) Banking and Financial Oil and Gas Retail (Blockchain, Machine Learning, Cognitive (Big Data, Cloud Storage, and IIoT) (Augmented Reality and Data Analytics) Technologies, AI, and Big Data ) Saudi Aramco, an oil and gas company, signed The Central Bank of the UAE undertook a Pure Gold Jewellers invested USD 10 million an agreement (USD 700 million) with joint project with the Saudi Arabian Monetary in the development of new concept stores in the Honeywell to explore opportunities in Authority to use blockchain technology for the UAE, Kuwait, and Oman. The stores offer technologies based on big data, cloud storage, issuance of digital currency to facilitate cross- “experiential tables”
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