As per the latest report from the Ideation Centre, the think tank for Strategy&, part of the PwC network, and INSEAD, the Business School for the World, there is huge scope of opportunity for the GCC governments for the development of the Data sectoral economy which although is still in its pristine or budding stages.
As per the combined study and reports overall survey, Data economy in the Gulf (GCC) has witnessed a marginal 0.3 percent surge from its native GDP as in 2018 to be valued at $4.7 billion, thus having a great potential in for the growth.
The report also suggested that all native governments can contribute their share in bolstering data economy and taking it to new heights by: –
- Offering up huge incentives for major private sector operators/firms.
- Providing huge boost up, economical fund and incentive-based support for infrastructure or solution providers, as well as the data traders, considering their prime aim is to establish their business or trade contact for the first time ever in native markets.
- It also provided an in-depth study that revealed how the native governments could pool in their investment spree that in turn supports data democratization such as encryption solution providers, distributed ledger technologies like the Blockchain, Data Marketplace, cryptocurrencies, Data Analysis and at last classification of major solution providers.
The report also concealed the primary importance regarding the Data pooling for the majority of the firms as it unfolds up a two-fold valued plan for improvising the internal operations and productivity and even supports in selling up data produced which is either in its basic coarse form or even analyzed format.
Jad Hajj, an accomplice with Strategy & Middle East stated that: “A circulate toward data-pushed technologies like Artificial Intelligence (AI), Machine Learning (ML) will in addition surge the financial cost of information. However, regardless of the GCC International Locations generating increasing amounts of statistics, the financial go back stays small.
“We estimate that the GCC information financial system is worth $4.7 billion (around 0.3 percent of regional GDP), a smaller percentage than within the European Union, wherein it’s far anticipated at 1.9 percentage of GDP.
“GCC international locations have lagged at the back of because stakeholders lack the focus of the cost in their records, and do now not sufficiently recognize their statistics’ business ability.”
Data consumption in Saudi Arabia is forecast to grow by using 28 percent a year between 2018 and 2022, swifter than the expected growth rate of 20 percent within the UK and 23 percent inside the US. The consumption of statistics in Saudi Arabia, the region’s largest economy, grew via 35 percent from 2014 to 2018.
According to the Strategy & report, there are five roadblocks hindering the development of a complete-fledged data economic system, each globally and within the GCC. These are associated with ownership, responsibility, advantage, privacy, and safety.
It said the information economic system in the GCC will begin realizing its full capability when regulators can assure that the rights of actors are nicely protected and actors are compensated fairly, organizations become aware of possibilities after which shift their recognition to constructing their data-pushed tradition, and people come to be more snug sharing their data.
According to the Strategy & report, 2018 GCC information sentiment survey, customers are aware of the fee of their facts but are unwilling to proportion too much.
Only 23 percentage of GCC respondents might be inclined to proportion more facts if they have been in control of it. Only 19 percent of respondents might have a greater percentage of records if they have been getting paid for it. The same percentage might proportion greater information if they understood higher how their facts are used.
Alice Klat, director of the Ideation Center, said: “GCC-region nations can gain benefits from the proliferation of records if governments, groups, and people alike understand the value of the data. Governments will need to build a prison and regulatory environment wherein agencies and individuals could be willing to share facts and take part in building the statistics economic system”.