Building a Data Economy
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BUILDING A DATA ECONOMY Recommendations to accelerate the digital transformation of the UAE Vol 2 | July 2021 AS IS THE CASE WITH ANY DISRUPTIVE CHANGE, CHALLENGES PERSIST IN THE FORM OF ACCESSIBILITY, SKILLS AND THE RIGHT TOOLS. BUT THESE CAN BE OVERCOME WITH THE APPROPRIATE GOVERNANCE AND GUIDELINES IN PLACE” 2 / Technology Think Tank FOREWORD CHARTING THE PATH s the UAE celebrates its 50th anniversary, it is a good opportunity to reflect on its many achievements over Athe past five decades. From little more than an outpost of the global economy in 1971, the UAE is now a global hub for energy, trade and THE UAE’S FOCUS business. In 2021, the UAE ranks highly in terms of economic and political stability, cultural diversity and quality of life. HAS ALWAYS BEEN As the pace of digitalisation increases, the challenge for the ON PROVIDING UAE in the coming 50 years is to be a leading player in the data economy and in the global energy transition. THE BEST The two key factors in accomplishing this goal are ensuring universal access to data, and establishing a robust system of FACILITIES FOR governance that supports the private sector, while at the same ITS POPULATION, time ensuring privacy and security. Attaining digital excellence has been the norm for the UAE AN APPROACH even before the pandemic. The government’s focus has always THAT CONTINUES been on providing the best facilities for its population, an ap- proach that continues to drive the nation’s digital journey. TO DRIVE THE As is the case with any disruptive change, challenges per- NATION’S DIGITAL sist in the form of accessibility, skills and the right tools. But these can be overcome with the appropriate governance and JOURNEY” guidelines in place. There is also an opportunity for the UAE to position itself as the ‘data processing hub’ of the world. With the best-in- class tools, skills and infrastructure in place, it could provide data storage and analysis services to international companies. Data diplomacy strategies could allow for cross-border sharing of data to benefit multiple economies. The second UAE Technology Think Tank looked at the best way for the UAE to achieve its data economy ambitions and how the private sector could support this. This white paper summarises the findings from the discussion through 10 key recommendations, bringing forth insights from across the UAE’s technology industry. Richard Thompson Editorial Director MEED Technology Think Tank \ 3 INDUSTRY REPRESENTATIVES 4 / Technology Think Tank KEY RECOMMENDATIONS GOVERNANCE Launch a national conversation Introduce a national data economy on data governance policies framework that defines the involving public consultation and roles and responsibilities of collaboration with industry players players in the value chain DATA PROTECTION Introduce legislation clarifying Establish policies to give rules on data ownership consumers greater control over and data protection their data sharing choices FUTURE GROWTH Ensure universal access to minimum Introduce national programme to data services by introducing reduce energy consumption and to measures to reduce the cost of decarbonise data centres last mile internet connectivity TALENT Increase investment in local talent Attract world class professionals pool by identifying missing skillsets, through special visas, higher living establishing centres of excellence and standards for digital talent etc. investing in training and research STANDARDS Develop GCC-wide alignment on Introduce national standards for the data standards and data protection classification, organisation and to enable greater opportunities for use of data to regulate cross-border data flow quality, privacy and security Technology Think Tank \ 5 OVERVIEW A NATION WITH A VISION DESPITE ITS INFRASTRUCTURE INVESTMENTS, THE UAE STILL HAS MUCH TO DO TO ACHIEVE ITS DATA ECONOMY AMBITIONS ransformative change was already un- in the UAE have rearchitected their IT infrastruc- derway in the UAE’s digital journey even ture to meet new remote and hybrid working T before the Covid-19 pandemic. demands, with tech budgets increasing to accel- From the launch of data centres by the likes erate digital transformation of Microsoft, AWS and Oracle and commercial Meanwhile, the IMD World Digital Competi- scale rollout of 5G networks, to trialling flying tiveness Ranking 2020 places the UAE 14th in taxis and blockchain-enabled public services. the world, based on three main factors: knowl- MEED’s Digital Transformation Index, which edge, technology and future readiness. seeks to build a picture of how well-placed The report says that the UAE’s strengths in economies are to enable digital change in terms digital competitiveness include vast internation- of physical infrastructure, human capital and al experience, relatively easy immigration laws, government policy regulation, positions the UAE use of Big Data and analytics, and high wireless at the top of the chart among peers in the Middle broadband penetration rate. East and North Africa. This is attributed to ex- In fact, the UAE emerges in the 4th place cellent physical infrastructure and cybersecurity, when it comes to technology and 11th in terms digital regulation and the ease of doing business. of future readiness, indicating that it has the The UAE’s investment in digital capabilities right resources and appetite for change in place. paid dividends amid the Covid-19 outbreak, when the nation’s digital prowess was tested. THE NEXT STEPS Police teams used smart helmets equipped But the report also identifies areas for improve- with thermal scanners to measure temperatures ment: cost of connectivity, regulations, lower from safe distances. The helmets’ ability to rec- public expenditure on education (as a percent- ognise faces and vehicle plate numbers served age of GDP), R&D productivity by scientific as a useful tool to keep travellers in check publications, annual capital expenditure in during the lockdown. telecommunications, and percentage share of Robots and drones were used to sterilise industrial robots. public areas. Meanwhile, the Al Hosn mobile The World Economic Forum’s Network Readi- application served as an integrated platform to ness Index 2020 ranks the UAE 30th globally and view test results, and for authorities to contact- first among the Arab states, the only country in trace and monitor patient health. the region that makes it into the top quartile. Remote-working tools were already at the The UAE is the global leader when it comes to disposal of most schools and workplaces in the information and communication technology UAE, and with the supportive infrastructure in (ICT) usage and skills among individuals. place, entities were quickly able to adopt work- It is also one of the highest-ranked countries from-home routines. The Telecommunication in terms of skilled workers and access to ICTs. Regulatory Authority (TRA) unblocked VoIP The index, however, suggests that there is applications in collaboration with telecommuni- a need to improve the creation of local digital cation operators Etisalat and Du. content and applications. There is also room for The fourth edition of the Global Interconnec- improvement in data regulations, and contri- tion Index (GXI) by digital infrastructure firm bution of ICT networks to the UN sustainable Equinix reported that 51 per cent of businesses development goals (SDG). 6 / Technology Think Tank FOUNDATIONS FOR INNOVATION IN THE UAE S e p te m 4 b 1 e 0 National Strategy Industry 4.0 r 2 The National Innovation Strategy The UAE Strategy for the 2 r 0 e aims to make the UAE one of the Fourth Industrial Revolution 1 b most innovative nations in the world was launched with the aim 7 o t by 2021. The strategy will stimulate to strengthen the nation’s c O innovation in seven sectors where position as a global hub for innovation is key to excellence: Industry 4.0. renewable energy, transport, education, health, technology, water and space. A 7 p 1 Artificial Intelligence r 0 Blockchain i l 2 The UAE Strategy of Artificial The Emirates Blockchain 2 r Intelligence touches upon potential 0 e Strategy sets out to transform 1 8 b AI applications in sectors including 50 per cent of government o t transportation, health and space. The transactions to blockchain c UAE Council for AI was formed in by 2021, resulting in annual O March 2018 to implement subsequent savings of AED11bn and 77 policy recommendations. million man-hours. J 9 a 1 n 0 u 2 a r e Cybersecurity Digital quality y n 2 u The UAE’s National Cybersecurity A National Policy for Quality of 0 J Strategy aims to create an integ- Digital Life was launched to create 2 rated system based on laws and a safe digital environment through 1 regulations, national response plans, 11 strategic initiatives. A ‘Digital partnerships, effective monitoring Wellbeing Knowledge Platform’ systems, and standardised method was also launched alongside. for reporting incidents. BUILDING A DATA ECONOMY Understanding the UAE’s data environment FACTORS 9.94m Population 87% Urban population GROWTH POINTS Increase in average smartphone internet speed in 2020 vs 2019 - 104.6% Internet users – 9.84m Active social media users – 9.84m Mobile connections – 17.06m UAE CLEAN ENERGY TARGETS Clean 44% energy 38% Gas BENEFITS 12% Clean coal Greater innovation 6% Nuclear More collaboration Reduced costs ECONOMIC INDICATORS Foreign investments 2020 expenditure on research New job opportunities and development as % of GDP 1.3% Creation of wealth Better public services 2020 Share of highly-skilled