The Role of Digital Transformation in Strengthening Economic Growth in Arab Countries

Abstract

This study aims to measure the role of digital transformation in enhancing economic growth in Arab countries; To achieve this objective, a Panel date time series methodology has been employed. The results of the study indicated a positive and statistically significant impact of digital transformation on economic growth represented by both increased revenues and a healthier balance of payments. This significant result is explained by the fact that an increase in the digital transformation index indicates greater technology utilization in production and services, enhancing market access and product quality. By investing in digital infrastructure and developing workforce skills, Arab countries can boost innovation and competitiveness, improve efficiency, reduce costs, and gain better access to global markets.