The Role of the Digital Economy in the Sustainable Development of Arab Countries- an analytical study

Abstract

The digital economy contributes to varying degrees to the economies of Arab countries, depending on its different importance from one country to another because of the differences in policies used in dealing with economic variables and indicators, as well as the differences between countries in terms of income, competitiveness, infrastructure, innovation, e-government development, and digital readiness. Which has direct and indirect effects on economic development in general and sustainable development in particular, given that the digital economy is one of the basic pillars of achieving sustainability. The research aims to clarify the role of the digital economy in the sustainable development of Arab countries according to their income levels for the years 2018, 2020, and 2022, based on some environmental and economic indicators, including (digital economy index, GDP per capita, sustainable development index). The research assumed that the rise in the digital economy index has positive effects in achieving sustainable economic development for Arab countries. In order to achieve the objective of the research and test its hypothesis, the theoretical method was relied on based on economic studies and research that dealt with the subject, as well as the analytical method based on the analysis of a number of indicators. The research reached the most important conclusions, that the digital economy has a role in achieving sustainable development in high-income and higher-middle-income countries, so the relationship was positive between both indicators, and this role weakens in countries with lower average income and is absent in low-income countries. The research proposes to communicate and use the digital economy throughout the Arab countries and improve its quality so that it can achieve its goals and contribute to achieving sustainable development.

Keywords: (digital economy, sustainable development, Arab countries, digital economy index, GDP per capita).