The Role of Electronic Payment Systems in Improving the Digital Economy Index An Analytical Study of the Arab Digital Economy Index for the United Arab Emirates and Iraq for the Period 2018-2024

Abstract

This research aims to analyze the reality of payment systems and monitor and evaluate the current status of electronic payment technologies in the United Arab Emirates and Iraq. It seeks to analyze the role of electronic payment systems in improving the Arab Digital Economy Index for the UAE and Iraq. Researchers used a quantitative descriptive approach to measure the research variables and employed statistical analysis (Pearson correlation coefficient and multiple linear regression) using the EViews 12 statistical analysis software. The research hypotheses support the existence of a significant correlation at the 0.05 level between electronic payment system variables and the Arab Digital Economy Index for both countries. Furthermore, the research indicates that electronic payment system variables influence the Arab Digital Economy Index for both countries. Among the most important conclusions is the existence of other factors outside the electronic payment system that affect the Iraqi Arab Digital Economy Index, such as the legislative environment, political stability, digital infrastructure, digital awareness, financial literacy among users, and trust in the banking system. This means that issuing cards alone in Iraq is insufficient to achieve the desired digital transformation without addressing these external factors. Iraq also achieved a growth rate in accounts (924%), significantly exceeding other Arab countries, indicating that the Iraqi market in 2026 is undergoing a significant transformation. The "major digital transformation" phase will positively impact all economic development indicators. Among the most important recommendations for the Iraqi government is to improve the legislative environment for electronic payment systems and enhance the digital infrastructure across all governmental and non-governmental institutions. Furthermore, it is crucial to collaborate with financial institutions to build public trust in order to achieve a fully integrated digital economy.