National Transformation in the Middle East A Digital Journey Abstract Digital Transformation is playing a accessibility of resources for citizens, such fundamental role in shaping the way as e-learning content, event information, governments across the world are open government data and more. adapting to new opportunities and Governments are integrating services in challenges. Competition, cost and budget the form of mobile apps and one-stop- pressures, shifting citizen demands, shop e-service centers to create seamless among other changes are sparking customer journeys that encourage governments all around the world to paperless transactions and e-payment implement innovative ICT capabilities options for services. The digitalization to drive their transformation to digital. of content such as medical records, Digitally mature countries like Estonia, education curriculums and more is South Korea and Singapore have realized allowing for better operational efficiencies the value of Digital Transformation and across organizations. Finally, the rise of have successfully progressed to deliver autonomous cars is expected to ensure delightful customer outcomes. the connectivity of people and networks across cities. GCC countries are making the move to build on international best practice and The successful outcomes of these leverage opportunities to transform into programs will be driven by the rapid Digital Government models. The National adoption and well-planned execution of Transformation in the Middle East: A digital programs. They will be supported Digital Journey, identifies six high impact by technologies like artificial intelligence, themes relevant to the Public Sector in the robotics, cloud, Internet of Things, and UAE, KSA, Qatar and Kuwait: Smart Cities, virtual reality, and governed by digital Smart Tourism, Next Generation Care, program offices encompassing the cross Classroom of the Future, Smart functional impacts. These transformations Government and Future of Mobility. are long-term and each stage of maturity Across these themes, government is driven by specific steps to be strategies are emphasizing the role of undertaken across the digital business, digital in order to accelerate economic digital operations and digital customer diversification, promote sustainability and horizons. Building maturity across these enhance citizen satisfaction levels by domains is the way forward for the Public implementing exponential technologies. Sector to deliver sustainable public service growth aligned to the 4th industrial Smart solutions have emerged as a result revolution. of these efforts to incorporate digital into initiatives across each key digital theme. For example, national platforms have been successfully developed as a means of sharing information and enhancing Download the full version @ e.huawei.com/ae/edm/global/NationalTransformationInTheMiddleEas t Deloitte | National Transformation in the Middle East | A Digital Journey Content Forewords 01 1. Digital Transformation in the Public Sector 04 2. Digital at the heart of GCC transformation 14 3. The GCC on the Digital Transformation journey 60 4. Implementing Digital Transformation 68 5. Public Service in its broader ecosystem 76 6. Implications for Government and Industry 82 Appendix 83 Glossary 87 Endnotes 89 Deloitte | National Transformation in the Middle East | A Digital Journey Foreword: Deloitte Over the past decade, countries across Deloitte has developed in collaboration the world and in the Middle East have with Huawei to examine the role of Digital witnessed some of the most seismic shifts Transformation and Digital Government in in their economies, societies and the Middle East. environment. The financial crises restricted access to capital for billions, The paper analyses global and regional rapid population and urbanization growth Digital Transformation trends in the Public has led to the birth of mega-cities and Sector, and based on this, identifies six more extreme weather conditions have key high impact themes that are at the scarcened essential power and water top of policymaker agendas. Across more than ever before. these themes, the study explores how governments in the Middle East are At the same time, we have also seen applying Digital Transformation today, some of the greatest technological where they are on their Digital breakthroughs and advances ever made. Transformation journey in relation to Artificial intelligence, flying taxis and the international best practices, uncovers Internet of Things, once figments of our key challenges they need to overcome Emmanuel Durou imagination, have now become a practical as well as the opportunities they need to Partner, Head of Middle East reality, unlocking new answers to key capitalize on going forward. To support TMT Industry challenges, and new possibilities. Such this journey, the paper recommends a Deloitte & Touche (M.E.) advanced technologies have completely Digital Transformation pathway regional transformed the way we as citizens governments can take to help them interact, learn, move, live, work and earn. succeed towards achieving their national Entire industries from media, retail, and transformation goals. tourism to finance have become disrupted, and the Public Sector now is We are pleased and honoured to have also at the helm of a major Digital worked alongside Huawei on this new Transformation. study, a leading ICT player in the region and we thank them for their vision, Countries need to be at the forefront of expertise and support. We also express these changes to address the global and our gratitude to the government entities national challenges they face. Recognizing across the region that provided their this, governments the world-over are now invaluable insights in support of this harnessing new exponential technologies paper. and embarking on their own Digital Transformation journeys, some more While the study is based on Deloitte and advanced than others. Huawei research, international Digital Government surveys, interviews with To this end, governments across the regional governments and subject matter Middle East have launched ambitious experts, we do not however presume ours national transformation plans with a is the last word on any given topic: our major focus on enabling ICT and Digital intent is to catalyze discussions and Transformation technologies, to address positive developments in the area in the their own economic, social and best interest of regional governments, environmental challenges. As such, the businesses and civil society alike. new era of national transformation, is a journey that we believe is truly digital. From this perspective, we welcome you to “National Transformation in the Middle East – A Digital Journey”, a whitepaper Emmanuel Durou 01 Deloitte | National Transformation in the Middle East | A Digital Journey Foreword: Huawei Digital is having a profound impact across Digital Transformation, harnessing and the world’s economies, societies and integrating digital technologies to develop future sustainability. The rapid smarter cities and become smarter proliferation and adoption across the nations, a key outcome of their national world of the internet, including visions. broadband, mobile and digital technologies such as social media, Huawei is focusing on helping the Middle smartphone devices, big data, cloud and East region accelerate its National ICT the Internet of Things has given rise to a transformation plans from vision to reality new era of hyper connectivity: the growing through our broad ICT platform interconnectedness of people, capabilities of Cloud, Pipe and Device plus organizations, and machines. a rich ecosystem of global and regional solution partners. This increasing digitalization is enabling the growth of a new Digital Economy, the To help key stakeholders understand how economic activity that results from billions Digital Transformation can enable success of everyday online connections among in achieving national goals and the Safder Nazir people, businesses, devices, data and potential impact it can have, we partnered Vice President, Digital Industries, processes. It has completely transformed with Deloitte in the development of this Strategy & Marketing our urban transportation, social and whitepaper, leveraging on their expertise Huawei Technologies - Middle East government interactions, our learning and in Digital Transformation, Digital health experiences, the work we do and Government and experience working with the way we live. Mobile is now our first Middle East governments on their national screen, digital is now the primary channel, transformation journeys. We thank data is the new currency and automation Deloitte for their invaluable thought is our key to unlocking new efficiencies leadership and the regional government and productivity. entities that have provided their key insights in support of this paper. With the disruption of every major economic sector ranging from e- We invite you to explore with us the commerce in retail, on-demand “National Transformation in the Middle entertainment, travel and hospitality to East: A Digital Journey”, a paper which the advent of FinTech in banking and assesses the trends and benefits of Digital insurance, digital technologies also Transformation for the Public Sector and represent an unprecedented opportunity the role of New ICT as a key enabler for for the Public Sector to reinvent itself. As Digital Transformation. Middle Eastern such, governments are now digitally