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A new World Bank Report finds that Mashreq countries have a unique opportunity to catch up on strengthening the digital economy ecosystem and reposition themselves as strong economic competitors at the regional and interregional levels.

Building the ecosystem of a regional digital economy would greatly benefit from two main comparative advantages these countries enjoy: competitive higher education levels and tech-savvy youth, and a strategic position that allows them to be at the center of advanced service trade and connectivity.

The new report, Mashreq 2.0: Digital Transformation for Inclusive Growth and Jobs, examines the inventory of digital infrastructure in Iraq, Jordan and Lebanon.

The report reviews the legal, regulatory and institutional frameworks governing the sector and pins down the obstacles preventing the full development of digital economies. The report also analyzes cross-sectoral digital applications and platforms, namely in the sectors of energy, financial inclusion, e-government, regional trade and logistics, agriculture and skills development. 

“Digital transformation can address some of the most imminent challenges the Mashreq region faces at this critical period, namely the need to foster inclusive growth and create the much-needed jobs for the region’s vibrant youth,” said Saroj Kumar Jha, World Bank Regional Director for the Mashreq. “Recognizing the importance of digital transformation, the World Bank committed back in October 2018 to the Moonshot approach which calls for doubling broadband access by 2021 and expanding access to digital payments.” 

The transformative impact of the digital economy stems from the growth in the billions of data and online transactions that businesses, individuals and governments perform every day. This transformation can bring about efficiencies, allow faster inclusion of lagging economic and social groups and improve governance and transparency.

Disruptive technologies are also increasingly changing the business model of core sectors of the economy, including agriculture, electricity, oil and gas, and industry production. 

Drawing on the expanded World Bank MENA Strategy which prioritizes leveraging technologies for a new digital economy, the Mashreq region has the opportunity to create an infrastructure for the development of a more sophisticated digital economy and capitalize on its large base of digitally literate youth to position itself as the digital hub of the region. 

“Increased contestability is essential to meet the Moonshot Approach targets,” said Carlo Maria Rossotto, World Bank Lead ICT Policy Specialist and lead author of the report.

“Mashreq countries will need to reduce excessive profits by stimulating competition, strengthen regulatory institutions, create regulatory incentives and ensure universal access in broadband through proactive use of public sector subsidies.” 

Broadband infrastructure enables economic growth as it provides easy access to information and increases efficiencies and productivity in the economy.

In fact, boosting broadband penetration alone by 10% would lead to as high as 1.4% GDP growth and significantly boost economic growth and trade integration in the region. The report finds that overall, there remains a considerable gap in the adoption, speed, usage and affordability of fixed broadband services between the Region and emerging economies such as Turkey, Romania and Bulgaria, countries that compare positively in digital economy development.  

On another hand, the development of physical access networks (“last mile” access) will be the area where most policy attention will need to be paid and the area which could attract the largest amount of investment.

The level of investment needed to bring high speed broadband access to 30% of the population of the Mashreq through fiber access (about 13 million households) will be between 4.0bn and 5.2bn. 

The report also finds that the Mashreq region has an extensive regional and backbone broadband infrastructure in place, that is however sub-optimally used, due to a mix of war and instability, complex political economy, and lack of reform at domestic level. 

The region has a strategic geographical position with respect to the global internet infrastructure. Mashreq countries could capitalize on the strategic access to major sea cable links through further liberalization of international gateways and internet exchange points. 

source: worldbank

من المتوقع أن ينخفض معدل النمو الاقتصادي في منطقة الشرق الأوسط وشمال أفريقيا انخفاضا طفيفا إلى 1.5% عام 2019 من 1.6% عام 2018، وفقا لتقرير جديد صادر عن البنك الدولي. وعلى الرغم من انخفاض النمو هذا العام، من المتوقع أن يشهد معدل النمو الإقليمي زيادة معتدلة إلى 3.4% في 2020 و2.7% في 2021.

يشير التقرير، والذي صدر اليوم، إلى أن النمو المتوقع في المنطقة تتصدره البلدان النامية المستوردة للنفط مثل مصر، التي تشكل نحو 8% من إجمالي الناتج المحلي للمنطقة، والتي من المتوقع أن تحقق نموا بنسبة 5.5% في عام 2019، وبمعدلات أعلى في 2020-2021. ومن المتوقع أن يصل النمو في دول مجلس التعاون الخليجي إلى 2.1% في 2019. إن انتعاش النمو في مصر ودول مجلس التعاون هو نتيجة جزئية وغير مباشرة لسياسات الإصلاح المحلية. وفي الوقت نفسه، فإن تراجع النمو المتوقع في أكبر أسواق صادرات المنطقة وهي الاتحاد الأوروبي والولايات المتحدة والصين، سيكون له تأثير سلبي عليها.

وقال فريد بلحاج نائب رئيس البنك الدولي لمنطقة الشرق الأوسط وشمال أفريقيا: "إننا نحث المنطقة على تبني إصلاحات طموحة". "هناك حاجة ملحة اليوم للنهوض بإصلاحات لتحسين الإنتاجية وتشجيع الابتكار والمنافسة. سيكون هناك 300 مليون شاب في الشرق الأوسط وشمال أفريقيا يتطلعون لدخول سوق العمل بحلول عام 2050. ولا يمكن للمنطقة أن تنجح إلا إذا عالجت العوائق الهيكلية أمام النمو. ونلاحظ اليوم أن البلدان التي تبنت إجراءات صعبة لتنفيذ إصلاحات تتعلق بالسياسات هي المحرك للنمو الاقتصادي في منطقة الشرق الأوسط وشمال أفريقيا. "

ولا يغير الانتعاش الطفيف المتوقع في النمو في السنوات المقبلة الصورة طويلة الأجل للنمو الباهت لنصيب الفرد من إجمالي الناتج المحلي والعجز المستمر في المعاملات الجارية في عدة بلدان نامية في المنطقة.  يشهد الكثير من البلدان المستوردة للنفط عجزا كبيرا ومستمرا في التجارة والمعاملات الجارية منذ أكثر من عقد. وعلى النقيض من ذلك، تمتعت البلدان المصدرة للنفط في المنطقة تاريخيا بفوائض كبيرة في المعاملات الجارية، لكن هذا الوضع تغير في السنوات القليلة الماضية. وحد التدهور في الأرصدة الخارجية من قدرة المنطقة على إعادة توزيع الوفورات من البلدان المصدرة للنفط مرتفعة الدخل إلى البلدان النامية التي تعاني من عجز مستمر في المعاملات الجارية، وخاصة منذ إعادة الهيكلة العالمية لسوق النفط في عام 2014.

يبرز التقرير الجديد وعنوانه "الإصلاحات والاختلالات الخارجية: الصلة بين العمالة والإنتاجية في منطقة الشرق الأوسط وشمال أفريقيا" الحاجة الملحة إلى المزيد من الإصلاحات الهيكلية التي يمكن أن ترفع إجمالي إنتاجية العمالة من أجل زيادة النمو وتقليل الاختلالات الخارجية في المنطقة في آن واحد.

وذكر رباح أرزقي، رئيس الخبراء الاقتصاديين لمنطقة الشرق الأوسط وشمال أفريقيا في البنك الدولي والمؤلف الرئيسي للتقرير: "ينبغي أن تحقق بلدان منطقة الشرق الأوسط وشمال أفريقيا ضعف معدلاتها الحالية من النمو على الأقل. ولإفساح الطريق للاستفادة من إمكاناتها غير المستغلة، يتعين على المنطقة تحويل اقتصادها، وتعزيز روح التنافس في السوق، واعتماد نهج لانطلاقة كبرى في الاقتصاد الرقمي".

ويدفع التقرير بأن العجز الزائد الحالي في المعاملات الجارية يجب أن يتقلص تدريجيا، بدلا من الانتظار حتى تفرض التراجعات في تدفقات رؤوس الأموال تغييرا في اتجاه العجز في المعاملات الجارية على بلدان المنطقة.

ويؤكد التقرير أن كلا من التغيرات السكانية وإجمالي إنتاجية العمالة هي المحركات الأساسية لرصيد المعاملات الجارية في أي اقتصاد. وهناك حاجة ماسة لتنفيذ إصلاحات هيكلية من أجل تحقيق زيادة في إجمالي إنتاجية العمالة. وتشمل هذه الإصلاحات: إصلاح مصروفات الموازنة التي يمكن أن تساعد من خلال زيادة وفورات المالية العامة، وتعزيز إنتاجية العمالة عندما يعرقل الدعم المنافسة في السوق، والإصلاحات التجارية التي تهدف إلى خفض تكاليف التجارة بما يتجاوز التعريفات الجمركية للمساعدة في دمج المنطقة في سلاسل القيمة العالمية، وإصلاحات سوق العمل لتعزيز إنتاجية العمالة مع توفير شبكة ضمان للعمال الذين فقدوا وظائفهم، والإصلاحات الذكية في الشركات المملوكة للدولة في صناعات الشبكات، مثل الطاقة والاتصالات، وذلك للمساعدة في تحسين كفاءة الشركات وكذلك زيادة إجمالي إنتاجية العمالة.

المصدر: البنك الدولي

اللغة العربية)

Economic growth in the Middle East and North Africa (MENA) region is set to drop slightly to 1.5 percent in 2019 from 1.6 percent in 2018, according to a new World Bank report. Despite the fall in growth this year, regional growth is expected to see a modest uptick to 3.4 percent in 2020 and 2.7 percent in 2021.

The World Bank’s latest bi-annual MENA Economic Update, launched today, says the expected growth in the region is led by developing oil importers, such as Egypt, which accounts for roughly 8 percent of MENA’s GDP, with a forecast at 5.5 percent in 2019, and higher in 2020-2021 Growth in GCC economies is expected to reach 2.1 percent in 2019.

The revival of growth in Egypt and the GCC is partly and indirectly the result of domestic reform policies. Meanwhile, the expected growth slowdown of MENA’s largest export markets, namely, the EU, US and China, will have a negative effect on the region.

“We’re challenging the region to embrace ambitious reforms,” said Ferid Belhaj, World Bank Vice President for the Middle East and North Africa Region. “There’s an urgency today for reforms to improve productivity and encourage innovation and competition.

The Middle East and North Africa will have 300 million young people looking to enter the job market by 2050.

The region can only succeed if it addresses the structural impediments to growth. We see that the countries that have taken difficult measures to implement policy reforms are the drivers of economic growth in MENA today.”

The modest expected pickup in growth in the upcoming years does not change the long-term picture of lackluster growth of GDP per capita and persistent current account deficits in several developing economies of MENA. Many oil-importing countries have been running large and persistent trade and current account deficits for more than a decade. In contrast, MENA’s oil exporters have historically had large current account surpluses, but that has changed in recent years. The deterioration in external balances has limited the ability of the region to recirculate savings from high-income oil exporters to developing economies with persistent current account deficits, most notably since the global restructuring of the oil market in 2014.

The new Bank report, entitled Reforms and External Imbalances: The Labor-Productivity Connection in the Middle East and North Africa, lays out the urgent need for more structural reforms that can raise aggregate labor productivity to simultaneously raise growth and reduce external imbalances in the region.

MENA countries should be growing at least at twice the rates they currently do,” said Rabah Arezki, World Bank Chief Economist for the Middle East and North Africa Region and lead author of the report.

“To awaken its untapped potential, the region must transform its economies, strengthen market contestability, and adopt a moonshot approach to the digital economy.”

Existing excess current account deficits must shrink gradually, the report argues, rather than wait until souring capital flows force current account deficit reversals upon MENA economies.

The report affirms that both demographic changes and aggregate labor productivity are fundamental drivers of an economy’s current account balance. Structural reforms are urgently needed to raise aggregate labor productivity. These reforms include: fiscal-expenditure reforms that can help by both increasing fiscal savings and enhancing labor productivity when subsidies prevent market contestability; trade reforms aimed at lowering trade costs beyond tariffs to help integrate MENA in global value chains; labor market reforms to enhance labor productivity while also providing a safety net for displaced workers; and smart reforms in State Owned Enterprises in network industries, such as energy and telecoms to help improve the efficiency of the firms as well as raise aggregate labor productivity.

Source: worldbank

Thursday 16 February at 11am 2016 was a record-breaking year for solar in the Middle East.

 

Record low tariffs below 3 US$ cents per kWh attracted worldwide press attention and even more in September 2016 when price went below 2.45 US$ cents per kWh.

The world record tariffs provided solar with an important jump-start of more large scale solar projects in the Middle East in 2016 (e.g. Saudi Arabia, Kuwait, and Jordan) and will drive even more large-scale project announcements and executions in 2017 in other countries (e.g. Oman and Tunisia).

In 2016, MESIA witnessed the following solar drivers and trends in the MENA region (PV, CSP, and ISCC): 885MWac in operation, 3,610 under execution and 1,300 under tender. In 2017, above 4,050 MWac are in the pipe for the PV sector and 1,310 MW for the CSP sector including some hybrid plant PV and CSP.

MESIAisperceiving a rapid adoption of large-scale solar in the Middle East: Egypt is aiming for 2,650 MW of PV capacity in operation by 2020. Morocco will have about 500 MW of CSP and 600 MW of PV in operation by 2019, while Jordan has 540 MW of PV projects under construction and is set to award 200 MW (4×50 MW) in the course of 2017. In UAE, 2016 saw Phase III awarded (Mohammed bin Rashid Al Maktoum Solar Park) with 800 MW for delivery over three phases until 2020 at 2.99 US$ cents per kWh. The Abu Dhabi Water and Electricity Authority (ADWEA) has tendered out a minimum 350 MW Sweihan solar power plant. In Saudi, SEC is currently tendering a 100 MW PV project across two sites in the northern region of the Kingdom while in Oman, the RFP for first utility scale PV projects is expected to be launched by the tendering authority by mid-2017. The project size will be around 200 MW. Pakistan is seeing the construction of the second phase of the project Quaid-e-Azam Solar Park (QASP) in Punjab – installing 300 MW. More data are available in the MESIA Annual Solar Outlook Report.

MESIA Annual Solar Outlook Report is also addressing the Rooftop Solar Project in the MENA region. Rooftop solar kicked off in the UAE with approximately 6 MW up and running by the end of 2016. It is expected the rooftop market in the UAE could reach 70 MW in 2017. This would mean more than tenfold growth in a 1-year period.

The report also elaborates on the storage and demand response solutions which provide additional flexibility to the transmission system and allow to curb peak load.

 

Wim Alen, Secretary General of MESIA and Senior Vice-Present Business Development – Middle East, South & Central Asia, and Turkey, at ENGIE said: “At MESIA, we are excited to see solar developments in the region going into fast-forward at attractive tariffs and lowering the carbon footprint of the regional economies. We see a pipeline of more than 5.7 GW of upcoming projects throughout the MENA region. ENGIE will be actively involved both as a market player and as an active member of MESIA. Our membership of the Association is very much in line with our global commitment to an organization such as Terrawatt Initiative, which advocates for a strong dialogue between the public and private sector to implement a solid market framework for solar worldwide.

 

About MESIA

MESIA is the largest solar trade association in the Middle East and North Africa region. Established in 2009, the association represents over 150 international and local organizations including investors, installers, manufacturers, law firms, consultants, policymakers and banks. MESIA is headquartered in Dubai, UAE and carries out solar-related activities and programs across the MENA region. Its regional coverage stretches from Egypt to Saudi Arabia, with over 10,000 subscribers. Over the past 7 years, MESIA has organized over 70 industry events focused on strengthening the footprint of solar energy in our region, including trade missions in Egypt, Pakistan and Jordan. Along the way, MESIA has won several prestigious awards and had been recognized by leading government authorities across the MENA region. MESIA also publishes industry-leading reports which have been featured in the New York Times, Wall Street Journal and the FT. To learn more about MESIA visit www.mesia.com.

 

www.middleeast-business.com

                 

 

 

البنك الدولي

 


(English version)

 

تكافؤ الفرص للجميع

 

نظرة عامة

 

تقرير ممارسة أنشطة الأعمال 2017: تكافؤ الفرص للجميع، هو منشور رئيسيصادر عن مجموعة البنك الدولي، وهو الطبعة الرابعة عشرة في سلسلة من التقارير السنوية التي تقيس الأنظمة التي تعزز النشاط التجاري وتلك التي تعوقها. يقدمتقرير ممارسة أنشطة الأعمال عدد من المؤشرات التي تتعلق بالأنظمة التجارية وحماية حقوق الملكية التي يمكن مقارنتها عبر 190 اقتصادا من أفغانستان إلى زيمبابوي وعلى امتداد الوقت.

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