Explainer: Is data the new oil in the GCC?

Is the term ‘data is the new oil’ still relevant?
Yes, data has practically become the ‘new oil’. Data is playing a significant role as a crucial source of wealth for oil-rich nations and territories such as the GCC, which has historically been particularly dependent on oil as the main contributor to the GDP.

We are witnessing a significant shift from oil to data in the region as governments embark on strategic initiatives to diversify towards more knowledge-based and tech-driven economies. Data is already playing a key role in this transformation. A concrete example of this process could be autonomous driving. Autonomous vehicles run on data in the same way that today’s cars run on gasoline. Therefore, undoubtedly, data will be the new oil.

In the GCC, oil has been crucial to economic growth. Will technology/data be able to provide the same level of economic prosperity?
Countries in the region are heavily investing in diversified industries such as technology, manufacturing, education, and healthcare, among others. As the Gulf states transform and diversify, the importance and impact of technology will take on an even greater role. Data is already defining the region’s future, complemented by mega projects planned with greater focus on smart infrastructure (smart cities), advanced telecoms services, and somewhat
accelerated by the rapid rise of remote learning and working due to the Covid-19 pandemic.

Furthermore, technology has now become a key driver of economic growth, from providing goods and services efficiently, to optimising advanced technologies to help businesses and governments access natural resources that can benefit people. Additionally, increased efficiency of labour has improved productivity and profitability.

While we are producing ample amounts of data in the region, are we currently maximising its benefits?
We are surrounded by data and it continues to grow exponentially. According to estimates, in 2021 alone, there will be 74 zettabytes of generated data and it is expected to reach 149 zettabytes by 2024. As a result, the need to understand and optimise data has become even more significant as every business uses data to some extent. However, there is a lack of knowledge and skills in utilising the data to its full potential. With the rise of digitalisation, companies and governments across the region and worldwide are investing in digital transformation, a positive indication that more organisations are now realising the importance of data.

The Covid crisis has highlighted the importance of technology – but will it retain its relevance post-pandemic across industries? 
The pandemic has undeniably prompted companies to invest more in technology adoption across industries including healthcare, education, retail and real estate, among others. The use of innovation technology such as virtual medical/doctor consultation has helped people during lockdowns. The Covid crisis has forced organisations and governments to adapt and prepare better to tackle future calamities with the aid of technology.

Businesses have seen the advantages and have started deploying smart and intelligent technologies such as artificial intelligence (AI) to improve safety standards and increase productivity. Thus, it is clear that technology has become an absolute necessity rather than a mere option; its relevance has never been so crucial and without a doubt the use and benefits will play a bigger role post-pandemic across industries locally, regionally and internationally.

What are the biggest challenges hindering tech adoption/data-driven growth in the region? 
Although organisations are implementing advanced technologies, the vast majority still operate on outdated and traditional models, which prevent them from utilising the benefits of the latest available technologies. Secondly, reluctance and resistance from employees in adopting technology poses challenges for companies. Lastly, a lack of skilled professionals is a key factor that has restricted organisations in the region from completing their digital transformation.

Looking ahead, GCC states are seeking to become global knowledge hubs. How can that journey be accelerated?
GCC governments are accelerating their digital transformation journeys with progressive strategies and initiatives. Smart Dubai, Dubai Data Strategy, Saudi Arabia’s The National Strategy for Digital Transformation and the Qatar Smart Program (TASMU) are examples of the regional commitment and ambition to explore all possibilities of technology and its impact on daily life and business. These strategies, roadmaps and ambitions are the key drivers and accelerators of their technological transformation journey.