The Next Chapter is Digital

Having built the country into a physical nexus point, the UAE can now turn its attention to becoming a digital nexus point for the post-pandemic world.

By Xische Editorial, May 21, 2020

Source: BoykoPictures/Envato

The UAE is one of the most networked countries in the world. From the world’s busiest airport (Dubai International) to some of the largest container ports (Jebal Ali in Dubai), the UAE is at the center of global trade. Add to that one of the most diverse populations anywhere and the result is a uniquely networked country. Such connections have enabled the UAE to take advantage of decades of globalization. From connecting the world through aviation to expanding Dubai’s position in the international trade network, the UAE’s rise as one of the most powerful countries in the Middle East is thanks in part to its close connection with trends in globalization. 

With the onset of the Covid-19 pandemic in March, however, globalization itself has taken a hit. Countries around the world quickly closed borders to stop the spread of the virus. Air travel came to a halt and supply chains for everything from livestock to Apple products slowed. The mechanisms of globalization have come under fire because of this virus but the idea that globalization will have to dramatically transform is fantasy. Let’s take a closer look at the UAE’s role in this debate. 

The UAE’s position as one of the most networked countries has been more of an advantage than a disadvantage during this pandemic. Along with South Korea, the UAE has been exporting medical goods to countries in need of supplies, including to the United States. Emirati testing kits for Covid-19 have been exported around the world and UAE planes are moving medical supplies to virtually every corner of the globe to help fight this virus. The US state of Nevada has even partnered with the Emirati company G42 to build its testing infrastructure. This is a remarkable demonstration of how much the UAE’s manufacturing sector has grown and the benefit of its networked approach to international trade. 

For a small and relatively young country, this should be a point of pride that can be translated into motivation to face fresh challenges. While larger countries such as the United States have failed to quickly contain the virus, the UAE is now a world leader in testing and contract tracing. Its response has been so extensive that Emirati companies are able to export their goods and experience to other places in need. 

The ability to shift supply chains and pivot to aiding other countries demonstrates the remarkable versatility of the UAE economy. This didn’t happen out overnight but thanks to years of dedicated leadership, investment in infrastructure, and the recruitment of the best talent in the world as well as the development of the local workforce. This versatility is going to be pivotal in the post-pandemic period as the economy comes back to life. As we have written before, the shift will need to focus on building on the knowledge economy and using the foundations of our digital infrastructure. 

Since we have already built the country into a “physical” nexus point, we need to turn our attention to becoming a “digital” nexus point. We can achieve this with a similar approach to building out our physical infrastructure, with top-down leadership that is agile enough to make quick decisions and willing to devote ample capital to critical infrastructure. We have already seen evidence of these types of decisions with Government commitments to Blockchain technology, smart city development, and the creation of research institutions that attract the best programmers and coders from around the world. 

We don’t know the exact nature of the challenges awaiting us in the post-pandemic economy. They will likely be deep but they are nothing the country can’t meet. The UAE’s remarkable story of transforming from a sleepy corner of the Arabian peninsula to one of the most networked countries in the world is a testament to its ability to meet any challenge head-on. As we prepare for the new (heavily digital) marketplace that awaits us when the virus is contained, we will be well-served to consider our foundations and gain inspiration from what we have already created. We are ready for any pivot that might come our way.