national transformation in the middle east a digital journey
TRANSCRIPT
National Transformation in the Middle East A Digital Journey
Digital Transformation is playing afundamental role in shaping the waygovernments across the world areadapting to new opportunities andchallenges. Competition, cost and budgetpressures, shifting citizen demands,among other changes are sparkinggovernments all around the world toimplement innovative ICT capabilities to drive their transformation to digital.Digitally mature countries like Estonia,South Korea and Singapore have realizedthe value of Digital Transformation andhave successfully progressed to deliverdelightful customer outcomes.
GCC countries are making the move tobuild on international best practice andleverage opportunities to transform intoDigital Government models. The NationalTransformation in the Middle East: ADigital Journey, identifies six high impactthemes relevant to the Public Sector in theUAE, KSA, Qatar and Kuwait: Smart Cities,Smart Tourism, Next Generation Care,Classroom of the Future, SmartGovernment and Future of Mobility.Across these themes, governmentstrategies are emphasizing the role ofdigital in order to accelerate economicdiversification, promote sustainability andenhance citizen satisfaction levels byimplementing exponential technologies.
Smart solutions have emerged as a resultof these efforts to incorporate digital intoinitiatives across each key digital theme.For example, national platforms havebeen successfully developed as a meansof sharing information and enhancing
accessibility of resources for citizens, suchas e-learning content, event information,open government data and more.Governments are integrating services inthe form of mobile apps and one-stop-shop e-service centers to create seamlesscustomer journeys that encouragepaperless transactions and e-paymentoptions for services. The digitalization of content such as medical records,education curriculums and more isallowing for better operational efficienciesacross organizations. Finally, the rise ofautonomous cars is expected to ensurethe connectivity of people and networksacross cities.
The successful outcomes of theseprograms will be driven by the rapidadoption and well-planned execution ofdigital programs. They will be supportedby technologies like artificial intelligence,robotics, cloud, Internet of Things, andvirtual reality, and governed by digitalprogram offices encompassing the crossfunctional impacts. These transformationsare long-term and each stage of maturityis driven by specific steps to beundertaken across the digital business,digital operations and digital customerhorizons. Building maturity across thesedomains is the way forward for the PublicSector to deliver sustainable public servicegrowth aligned to the 4th industrialrevolution.
Abstract
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Deloitte | National Transformation in the Middle East | A Digital Journey
Content
041. Digital Transformation in the Public Sector
142. Digital at the heart of GCC transformation
603. The GCC on the Digital Transformation journey
684. Implementing Digital Transformation
76
82
5. Public Service in its broader ecosystem
83Appendix
87Glossary
89Endnotes
01Forewords
6. Implications for Government and Industry
01
Over the past decade, countries acrossthe world and in the Middle East havewitnessed some of the most seismic shiftsin their economies, societies andenvironment. The financial crisesrestricted access to capital for billions,rapid population and urbanization growthhas led to the birth of mega-cities andmore extreme weather conditions havescarcened essential power and watermore than ever before.
At the same time, we have also seen some of the greatest technologicalbreakthroughs and advances ever made.Artificial intelligence, flying taxis and theInternet of Things, once figments of ourimagination, have now become a practicalreality, unlocking new answers to keychallenges, and new possibilities. Suchadvanced technologies have completelytransformed the way we as citizensinteract, learn, move, live, work and earn.Entire industries from media, retail, andtourism to finance have becomedisrupted, and the Public Sector now isalso at the helm of a major DigitalTransformation.
Countries need to be at the forefront ofthese changes to address the global andnational challenges they face. Recognizingthis, governments the world-over are nowharnessing new exponential technologiesand embarking on their own DigitalTransformation journeys, some moreadvanced than others.
To this end, governments across theMiddle East have launched ambitiousnational transformation plans with a major focus on enabling ICT and DigitalTransformation technologies, to addresstheir own economic, social andenvironmental challenges. As such, thenew era of national transformation, is ajourney that we believe is truly digital.From this perspective, we welcome you to“National Transformation in the MiddleEast – A Digital Journey”, a whitepaper
Deloitte has developed in collaborationwith Huawei to examine the role of DigitalTransformation and Digital Government inthe Middle East.
The paper analyses global and regionalDigital Transformation trends in the PublicSector, and based on this, identifies six key high impact themes that are at the top of policymaker agendas. Across these themes, the study explores howgovernments in the Middle East areapplying Digital Transformation today,where they are on their DigitalTransformation journey in relation tointernational best practices, uncovers key challenges they need to overcome as well as the opportunities they need tocapitalize on going forward. To supportthis journey, the paper recommends aDigital Transformation pathway regionalgovernments can take to help themsucceed towards achieving their nationaltransformation goals.
We are pleased and honoured to haveworked alongside Huawei on this newstudy, a leading ICT player in the regionand we thank them for their vision,expertise and support. We also expressour gratitude to the government entitiesacross the region that provided theirinvaluable insights in support of thispaper.
While the study is based on Deloitte andHuawei research, international DigitalGovernment surveys, interviews withregional governments and subject matterexperts, we do not however presume oursis the last word on any given topic: ourintent is to catalyze discussions andpositive developments in the area in thebest interest of regional governments,businesses and civil society alike.
Foreword: Deloitte
Emmanuel DurouPartner, Head of Middle East TMT IndustryDeloitte & Touche (M.E.)
Deloitte | National Transformation in the Middle East | A Digital Journey
Emmanuel Durou
02
Digital is having a profound impact acrossthe world’s economies, societies andfuture sustainability. The rapidproliferation and adoption across theworld of the internet, includingbroadband, mobile and digitaltechnologies such as social media,smartphone devices, big data, cloud andthe Internet of Things has given rise to anew era of hyper connectivity: the growinginterconnectedness of people,organizations, and machines.
This increasing digitalization is enablingthe growth of a new Digital Economy, theeconomic activity that results from billionsof everyday online connections amongpeople, businesses, devices, data andprocesses. It has completely transformedour urban transportation, social andgovernment interactions, our learning andhealth experiences, the work we do andthe way we live. Mobile is now our firstscreen, digital is now the primary channel,data is the new currency and automationis our key to unlocking new efficienciesand productivity.
With the disruption of every majoreconomic sector ranging from e-commerce in retail, on-demandentertainment, travel and hospitality to the advent of FinTech in banking andinsurance, digital technologies alsorepresent an unprecedented opportunityfor the Public Sector to reinvent itself. Assuch, governments are now digitallytransforming the way they interact withcitizens, deliver public services and tackletheir greatest national challenges.
Middle East governments, in response tooil price pressures, rapid populationgrowth, urbanization and rising citizendemands have also embarked on massivenational transformation plans of theirown. All of these plans are explicit about
Digital Transformation, harnessing andintegrating digital technologies to developsmarter cities and become smarternations, a key outcome of their nationalvisions.
Huawei is focusing on helping the MiddleEast region accelerate its National ICTtransformation plans from vision to realitythrough our broad ICT platformcapabilities of Cloud, Pipe and Device plusa rich ecosystem of global and regionalsolution partners.
To help key stakeholders understand howDigital Transformation can enable successin achieving national goals and thepotential impact it can have, we partneredwith Deloitte in the development of thiswhitepaper, leveraging on their expertisein Digital Transformation, DigitalGovernment and experience working withMiddle East governments on their nationaltransformation journeys. We thankDeloitte for their invaluable thoughtleadership and the regional governmententities that have provided their keyinsights in support of this paper.
We invite you to explore with us the“National Transformation in the MiddleEast: A Digital Journey”, a paper whichassesses the trends and benefits of DigitalTransformation for the Public Sector andthe role of New ICT as a key enabler forDigital Transformation. Middle Easterngovernments are on their DigitalTransformation journeys, learning fromsuccessful digital use cases can help them to accelerate the realization of their national goals to become morecompetitive, world leading smart nations.
Foreword: Huawei
Safder NazirVice President, Digital Industries,Strategy & MarketingHuawei Technologies - Middle East
Deloitte | National Transformation in the Middle East | A Digital Journey
Safder Nazir
1. Digital Transformation in the Public Sector
05
The future of governments –“Gov2020”Demographic changes, new societalbehaviors and technologicalbreakthroughs are amongst the keydrivers transforming the Public Sector. By2020, 60 percent of the global populationwill be living in an urban area. Newinnovative transport modes will bedeployed, such as autonomous vehiclesand drones flying over cities1.Governments will transform from a stateof reactivity to proactivity in a variety ofaspects ranging from policy decisions toemergency responses. Two billion peoplewithout financial services will graduallyenter the banking system, and educationwill become more inclusive pushing for nochild to be left behind in a world whereilliteracy costs the global economy US$1.2trillion per year2.
Governments will need to be at theforefront of these changes. As part of arecent global report, “Gov2020: A Journeyinto the Future of Government”3, Deloitteidentified 204 Public Sector trendsincluding 37 cross-sector and 167 specificsectorial trends which will shape thefuture of the Public Sector in the comingyears. Each of these trends will have thepotential to reshape Public Sectoroperating models with the aim to improveservice delivery experience, foster theeconomy, enhance citizen well-being andbecome more cost effective. Many of theanalyses and outcomes contained withinthe report have been used as a steppingstone for this paper where futuregovernment shifts will be analyzedthrough the lens of Digital Transformation.
The role of digital and ICT in PublicSector transformationWhilst the drivers of Public Sectordisruption are manifold, for the purposeof this paper, it was chosen to place aparticular emphasis on digitaltechnologies and their role in governmenttransformation. Digital technologiesrepresent an unprecedented opportunityfor the Public Sector to reinvent itself,especially considering the convergence of four prominent technologies: socialapplications, mobile technologies, big dataanalytics and cloud infrastructure. Thesetechnologies represent a combined globalmarket of approximately US$1.2 trillion in20174. Furthermore, this market willwitness a double digit compound annualgrowth rate (CAGR) over the next fewyears.
Governments can now use cloud basedenvironments to enable new public-private partnerships for the provision ofpublic services. Already, many governmentservices are being made available throughmobile, enhancing service delivery
experience. For example, by using mobileapplications, individuals can create“service orders” to repair publicinfrastructure.
In the future, these trends will increaseexponentially as governments will be ableto allocate funds in more efficient ways.Using Internet of Things (IoT) to collectand aggregate data through connecteddevices with sensors can collate massamounts of information and predict theoccurrence of events. Predictive modelingwill become more prevalent and data willbe processed into valuable information toincrease the accuracy of Public Sectordecisions. Smart services based onremote devices connected to a mobilenetwork will enable governments toenhance personal safety, sustainability,health, wellness and sanitation. Finally,with regard to Smart Cities, the world is onthe brink of a new wave of disruptionconsidering that opportunities in thisdomain are still largely unexplored andhave the potential to transform the waycities operate.
1. Digital Transformation in the Public Sector
Demographic changes, new societalbehaviours and technologicalbreakthroughs are amongst the keydrivers transforming the Public Sector.Governments will need to be at theforefront of these changes.
Deloitte | National Transformation in the Middle East | A Digital Journey
06
Digital maturity in the Public SectorAs pointed out earlier, Public Sectorentities across the world are embarking ona Digital Transformation journey to helpovercome the many critical challengesthey face. According to interviewsconducted with over 1,200 governmententities worldwide, Deloitte identified themain drivers of Digital Transformation inthe Public Sector shown in the figure on the right6.
-1.0%Lower unemployment rate recorded by cities
that invest in smart grid technology and infrastructure
+1.0% Growth in GDP, resulting from
every 20 percent increase in
ICT investment
-10% Death toll from roadaccidents by using
usage based insurancecoupled with assisted driving technologies
26bn
Tons of net avoided CO2 emissions from
2016 to 2025 by launching digital
initiatives
Economy Society Sustainability
Digital technologiesrepresent anunprecedentedopportunity for the PublicSector to reinvent itself.The convergence of fourprominent technologies:social applications,mobile technologies, bigdata analytics and cloudinfrastructure represent acombined global marketof approximately US$1.2trillion in 2017.
According to interviewsconducted with over1,200 governmententities worldwide,Deloitte identified 3 maindrivers of DigitalTransformation in thePublic Sector: cost andbudget pressures,customer/citizendemands and federalgovernment directives.
Figure 1: Selected impact on ICT economies
Source: World Economic Forum5
Figure 2: Biggest drivers of DigitalTransformation
Question: What is the biggest driver of DigitalTransformation?
Source: Deloitte Global Digital GovernmentTransformation Survey, “The Journey toGovernment’s Digital Transformation 2015”,Deloitte University Press (DUP)
38%
37%
Cost and budget pressures
Customer/citizen demands
Federal government directives
14%
6%5%
Digital maturity of other agencies
Others
Deloitte | National Transformation in the Middle East | A Digital Journey
07
Many industries have experienced theimpact of digital disruption before thePublic Sector. This advent of digitaltechnology is revamping the way of doingbusiness across industries, at differentpaces and impacts. A comparison acrossindustries based on digital impact andtiming is presented in figure 37.
Figure 3 outlines the main industry groupsthat have been impacted at differenttimes and different levels of disruption bydigital. Interestingly, Public Sector relatedentities (grouped with “long fuse, big bangindustries”) are being severely disruptednow by digital, but this impact has beenfelt years after other sectors have, such asICT and media for instance. Theopportunity for the Public Sector is tolearn from the experiences of the “shortfuse, big bang industries” to best adapt todigital.
With globalization, countries areincreasingly competing against each otherfor talent, foreign investment anddevelopment. Ensuring that their digitalinfrastructure is in place has become amajor competitveness differentiator asreflected in a number of internationalcompetitiveness indices. This, in turn, haspushed countries both regionally andinternationally to put in place nationalstrategies to enhance smart governmentperformance.
In developed countries, DigitalTransformation serves primarily as a wayto reduce budget pressure whileenhancing customer experience. Certainemerging markets (i.e. South Korea, UAE,Singapore, Estonia) have successfully beenable to achieve great progress in theirdigital initiatives. One of the factors thathas helped these emerging countries tomove quickly in their transformation is theabsence of legacy technologicalinfrastructure as compared to moredeveloped countries.
Figure 3: Public Sector benefits from the lessons learnt in “Industry 4.0”
50
45
40
35
30
25
0 1 32 54
Accommodation & food services
Construction
Manufacturing
Mining
Utilities
Recruitment & cleaning
Transport & post
Health
Agriculture
Education
Government services
ICT & media
Finance
Professional services
Real estate
Arts and recreation
Retail trade
Timing (years)
20
15
10
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Long fuse, big bang sectors Lessons learnt
PPuubblliicc SSeeccttoorr rreellaatteedd iinndduussttrriieess
From a Public Sectorperspective, the relativeabsence of competitionhas delayed the decision to undergocomprehensivetransformation exercisesup until the “status-quo”became unsustainable.However, in this day andage, transitioning todigital is no longeroptional.
Deloitte | National Transformation in the Middle East | A Digital Journey
08
How to assess the digital maturity of a sector As indicated above, while technology is anintigral part of a Digital Transformation, itrequires a 360 degree operating modelchange. Digital Transformation is primarilyabout strategy supported by technology. It requires a focus on developing neededcapabilities such as skills, culture andleadership.
As shown in the model on the right, digitalmaturity should be viewed through thelens of five key pillars which form the corecomponents of Deloitte’s Digital MaturityAssessment Framework.
These five pillars can support PublicSector entities in order to answer thefollowing questions and assess their digitalmaturity:• Do you have the right vision and strategyfor digital, and the leadership,communications and focus required tosupport this vision?
• Do you have the right people, talent,skills and knowledge to support yourvision, products, and services?
• Do you have the right processes,controls and digital technologies tosupport the operations of theorganization?
• Do you have the right technologies andinfrastructure as well as the ability todevelop, manage and deliver?
• Do you have the right approach tounderstanding and communicating withyour customers to succeed in a digitalenvironment?
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Figure 4: Deloitte’s Digital Maturity Assessment Framework
Digital Transformation is primarily aboutstrategy supported by technology. Itrequires a focus on developing neededcapabilities such as skills, culture andleadership.
Deloitte | National Transformation in the Middle East | A Digital Journey
9
Global challenges in the digitalizationof the Public Sector Despite the pressure to change, PublicSector organizations are facing challengesin embarking on this journey. As perDeloitte’s Global Digital GovernmentTransformation Survey8, manyorganizations recognize that they areneither ready to respond to digital trendsnor satisfied with the progress on theinitiatives they are undertaking. Accordingto government entities, the mainchallenges and barriers that are impedingthe implementation of these solutions andprograms can be categorized into thefollowing:
Policy bottlenecks and bureaucratic inertiaPublic Sector entities need to keep up todate with the rapidly evolving digitaltechnologies and innovations, yet thesedevelopments often involve drasticchanges to their operating models. Giventhe complexitiy of such changes, someentities prefer to adopt a “status quo”approach and delay the decision makingprocess.
Additionally, legislative and regulatorybottlenecks generate longer periods oftime and resources required beforeorganizations can start implementing anyinitiatives.
Budget and capability constraintsBudget constraints restrict organizationsfrom investing in the right resources totransform their operating models (i.e.investing in new technology systems,hiring new talent etc). In this context, many Public Sector entities struggle tofind the necessary budget to fund DigitalTransformation initiatives, even though itcan lead to substantial cost savings.
As per Deloitte’s Global DigitalGovernment Survey, culture, workforceskills and leadership are areas that remaina challenge for Public Sectororganizations. As such, internal capabilitiesare a constraint that hinders the journeyin transitioning to full digital maturity.Embarking on this journey requires hiringnew talent and skills that were previouslynot available in-house and that are notalways readily accessible in the market.Moreover, instilling a culture that is moreinnovation driven as opposed tooperational is a challenge that many PublicSector organizations have not yetresolved.
Finally, the digital understanding andcommitment of leadership are key indeveloping a foundation that will drivestrategy and its implementation. Despitethis fact, too often, entities face situationswhere leadership is not strong enough todrive these changes.
Digital exclusion and divideDigital literacy is the awareness and abilityof people to use digital tools in their dailylives. Overall, digital accessibility hasimproved dramatically over recent yearsthanks to new, more tech-savvygenerations and enhanced ICT content inschool and university curriculums.Nevertheless, digital exclusion remains anissue with a persistant lack of adoption ofthese technologies by certain populationcategories. Individuals residing in ruralareas remain secluded from basictechnologies such as high speed internet.Moreover, older generations at times
remain unwilling to transition to newerdigital channels.
Privacy and security Governments regularly deal with sensitivedata related to personal information suchas passport numbers, driver licenses andother classified information.
New avenues that are offered bytechnologies such as cloud computing,analytics (i.e. big data and open data) interms of improvements arecounterbalanced by greater risksregarding data protection andconfidentiality. This can be seen by thenumber of security breach cases that havemade the news in the last few years.Notwithstanding, with considerableimprovements in terms of security andprivacy protection, many governmentsremain reluctant to further open up theirdata.
Transitioning government staff to new roles With regards to government servicedigitization, the primary stakeholdersaffected are employees used to deliveringmanual tasks, but later require new typesof skills. Too often, governments neglect tooffer bespoke trainings to employees whohave transititioned to new roles and areleft without the required capabilities toproperly manage the new position.
Value at stakeDigitizing government entities and theirservices can bring about majorimprovements for governments, citizensand businesses alike, and in turn,contribute to the competitiveness of anation. According to Deloitte’s National ICTIndex which measures a variety of ICTreadiness factors (i.e. telecommunicationsinfrastructure, ICT regulation, governmentICT adoption and social ICT impact), theGCC has made significant progress inrecent years, but on average, lags behindother developed economies in terms ofDigital Government capabilities.
Deloitte | National Transformation in the Middle East | A Digital Journey
Policy bottlenecks and bureaucratic inertia
Budget and capability constraints
Digital exclusion and divide
Privacy and security
Transitioning government staff to new roles
10
The value at stake for governments can bemeasured in a number of ways that rangefrom a cost saving perspective to the lensof creating value for citizens andbusinesses with better service delivery.Such improvements include citizenwellbeing (e.g. satisfaction withgovernment services), or ease of doingbusiness (e.g. time to open a company).There are three main areas (economy,society and sustainability) where DigitalTransformation of the Public Sector canlead into tangible and quantifiable benefitsthat are illustrated based on case studiesbelow:
Impact on the EconomyCase study: business costreduction in New Zealand
The New Zealand Ministry ofBusiness, Innovation andEmployment has launched a newinitiative to improve Public Sectorservice delivery to businesscustomers with the ultimate goalof decreasing costs to businesses(business cost to be reduced by25 percent) when dealing with thegovernment and enhancing theoverall competitiveness of NewZealand’s businesses. To achieve these goals, theministry launched severalinitiatives:
• Making tax simpler:Businesses will be able toprocess their tax throughimproved online services
• Accelerator: An accelerator hasbeen launched where PublicSector staff collaborate with theprivate sector entrepreneurs,developers and mentors todevelop services with the goal ofsolving major pain points forlocal businesses11.
68%66%
72%72%70%73% 74%
70%67%67%72%
66%64%58%
52%
75%62%GCC
84%
78% 78%84%
77%76%
45%47% 50%
73%
51%55%
29%
40%
Figure 5: The National ICT Index
Note: see Appendix for methodology and for calculation of National ICT Index for CanadaSource: Deloitte research and analysis, based on various published national indices and indicators from World Economic Forum
Impact on SocietyCase study: combatingfoodborne illnesses in the USA
Chicago is using advancedanalytics combined with big andopen data to combat foodborneillnesses. Using unstructureddatasets including 311 complaintcalls, sanitation inspections, andeven weather help, healthinspectors have been able toforecast violations and focus onfood establishments most likelyrequiring attention. With this newapproach driven by preventionand anticipation, violations arenow being discovered on anaverage of seven days earlier9.
Impact on SustainabilityCase study: safety foremergency services in the USA
In the wake of the 2014Washington State Oso mudslide,the public, private andphilanthropic sectors collaboratedto fly drones with advancedsensors using reality computing. Itthen developed and printed a 3Dsurface model over the disasterzone. Consequently, drones wereable to map the entire area inseven hours, an activity that wouldhave normally taken two to threedays, and it kept responders safein the process10.
Deloitte | National Transformation in the Middle East | A Digital Journey
According to the NationalICT Index, the GCC hasmade significant progressin recent years, but onaverage, lags behindother developedeconomies in terms ofDigital Governmentcapabilities.
The Public Sector’s key themes forDigital TransformationDigital has an impact across multiplelayers and levels of any organization.Identifying all the services that can bedigitized is an exercise that goes beyondthe scope of this document. For the sakeof this paper, the large universe of trendsthat are shaping the Public Sector wasanalyzed in order to screen key themes tobe assessed that are relevant for the GCCmarket. This paper leveraged the 204
trends identified in the “Gov2020: AJourney into the Future of Government”12
report. Each trend was then derived bylooking at a broad range of sectors (i.e.education, defense, transportation, energyand environment, healthcare, law andjustice) and was supported by thefollowing intrinsic drivers that affect thePublic Sector: digital and exponentialtechnologies, economy, demography andsociety.
Industry & Government Digital Transformation
National Transformation PlansTr
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Econ
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Sec
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Key
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Tre
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…
11
Figure 6: Multi-layered architecture to address Digital Transformation for Public Sector
Note: trends are not exhaustive
Deloitte | National Transformation in the Middle East | A Digital Journey
12
For the purpose of this paper, thesetrends were grouped into key themeswhich were then filtered in two phases toultimately arrive at six of the most relevantthemes (as described in the figure on theright).
The first filter reflects the theme’srelevance to digital and exponentialtechnologies. This dimension underpinsthe importance of digital as an enabler forgovernements and Public Sector entitiesin order to take on such opportunities.Twenty one digital-driven trends wereidentified which range from IoT in defenseto smart cities, to the rise of robotics.
Filter – Relevancy to the Middle East
Filter - Digital Related Categories
Trends across sectors grouped by category
Key digital Public Sector categories
in the region
Key Public Sector digital categories
Deloitte’s 204 cross-sector and sectorial trends
Our
met
hodo
logy
6 key digital Public Sector themes (high impact)
Figure 7: Methodology to screen the key digital themes
Deloitte | National Transformation in the Middle East | A Digital Journey
List of 204
trends
Defense
Education
Healthcare
Law & Justice
Human Services
Transport / Tourism
Cross Sectors
Energy & Environment
Additive manufacturing in
defense
Army of tomorrow
Asymmetric threats
Healthcare defense trans-
formation
Intelligence & surveillance top
priorityIoT in defense
Rise of robot and drone armies
Defense spending
The classroom of the future
Higher education
School Systems 2.0
The evolution of learning
Tomorrow's curriculum
Next gen. teachers
Smart data and devices
Sustainablefinance
Sustainable policy
Sustainable consumption
Urban environmental
innovation
Additive manufacturing in
healthcare
Biometrics evolution
Next generation care
Healthcare systems
Healthcare data revolution
Patient-powered healthcare
Security 2.0
Digital customer
Socialfinancing
Smart tourism
Alternative modes of transport
Future of mobility
Innovation in pricing, funding &
payments
Smart cities
Smart government
Alternative funding models
New basis for national prosperity
Transformation of government
operating models
Government talent model
revamp
Trends were bucketed in various themes across sectors
Government Themes
Digital Trends
National Transformation
platform
Predictive crowd flows
Real-time locationservices
Figure 8: Mapping of digitally-relevant themes
13
Themes to be analyze
d
in further detail
Cloud computing
Augmented/virtual reality
Robotics
Autonomous vehicles
Blockchain
Cyber security
IoT
Artificial intelligence
3D printing
Analytics/Big Data
Sensor technology
Classroom of the future
Smart tourismSmart cities
Rise of robot & drone armies
IoT in defense
Smart government
PPuubblliicc SSeeccttoorr TTrreennddss IICCTT TTeecchhnnoollooggiieess
Relevance to the Middle East
Low
Low
High
Low
Relevance to the Middle East
High
Low
Security 2.0
Sustainable consumption
Digital customer
Smart environment data & devices
Integratednational platform
5G, 4G & 3G
SDN/ NFV
Digital twins
LIFI
High High
Impact
Social
Unnamed aerial Vehicles
Healthcare data revolution
Patient-powered healthcare
School Systems 2.0
Tomorrow’s curriculum
POL
OTN
Predictive crowd flows
Real-time location services
National Transformation platform
Future of mobility
Next gen. care
Figure 9: Selection of key digital Public Sector themes for the GCC
Note: trends and technologies are not exhaustive
Deloitte | National Transformation in the Middle East | A Digital Journey
The second filter is an assessment of therelevance of these themes to the MiddleEast and their impact on economy, societyand sustainability. The final outcomereflects the most relevant digital themesrelated to Public Sector transformation inthe region. Ultimately, the following keythemes were selected to be explored indetail throughout this paper:
• Smart Cities: Cities that use smarttechnologies, data analysis andinnovation to improve quality of life,efficiency of urban operations, servicesand competitiveness
• Smart Tourism: Smart Tourism is theuse of ICT to promote travel and tourismby enhancing visitor experience
• Next Generation Care: NextGeneration Care is characterized aspervasive, preventative, efficient andpersonalized care through ICT usageleading to higher quality and improvedpatient experience
• Classroom of the Future:Classroom of the Future represents thetransformation of traditional educationsystems to digitally-enabled learning andcurricula that enhances the learningexperience
• Smart Government: SmartGovernment refers to the use ofintegrated information andcommunication technology ingovernment policies, services andprocesses
• Future of Mobility: Future of mobilityrepresents both the physical and digitalinfrastructure and services that enablepeople and goods to move more safely,cheaply, quickly, cleanly and happily.Existing and new advanced technologiesare applied to improve mobility andresolve age-old transportation issuessuch as congestion, capacity andsustainability.
2. Digital at the heart of GCC transformation
15
2. Digital at the heart of GCC transformationDigital Transformation: no longer optional
Focus countries
3381
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SShhaarree ooff GGCCCC GGDDPP 22001166 (%) 5% 8% 11% 45%28%2%
PPooppuullaattiioonn 22001166 (millions)
4.4m 4.1m 2.6m 32.3m9.3m1.4m
NNoommiinnaall GGDDPP (USD billions)
Focus countries
% GCC share
9933%%
8899%%
20162014
Figure 10: GDP and population analysis of the GCC
Source: World Bank, Deloitte analysis
GCC countries have been,at various levels andpoints in time, confrontedwith a sense of urgency todiversify their still largelyhydrocarbon-dependenteconomies.
The imperative for change and new ambitionsThe range and pace of social andeconomic challenges necessitating changein the Middle East are unique. In theaftermath of the Arab Spring, whichprecipitated significant shifts in the socio-political landscape of many Arab nations,as well as in the new light of more recenteconomic oil price shocks to nationalaccounts, governments across the GCC
have recognized and reignited their effortsto respond, improve and evolve.
GCC countries have been, at various levelsand points in time, confronted with asense of urgency to diversify their stilllargely hydrocarbon-dependenteconomies. For the purpose of this paperwe have focused our analysis on the fourlargest economies (GDP-wise) in the GCCas outlined in the figure below:
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The imperative to change has prompted awave of national vision upgrades, the mostrecent being the Saudi Vision 2030unveiled in 2016, the New Kuwait 2035vision launched earlier this year, as well asthe Qatar National Vision 2030 and UAEVision 2021 visions established earlier13A.
While endeavours towards national visionstend to follow a steady and incrementalpath over the long-term in other countriesand regions, the plans adopted by thisgroup of hydrocarbon-rich nations in theGCC are far bolder and more ambitious,seeking to make substantive impact in afive-year time horizon. Saudi Arabia’sNational Transformation Plan 2020, UAE’sNational Agenda 2021, Qatar’s anticipatedNational Development Strategy 2017-2022, and Kuwait’s Kuwait DevelopmentPlan (KDP) 2015-20 each representmassive modernization plans, which seekto accelerate economic diversification,stimulate growth, foster sustainability andunlock citizen happiness.
In doing so, these countries not only aimto secure a viable long-term future fortheir citizens, but also build on theirnational competitiveness and credibility onthe global stage. They seek to encourageforeign investment while continuing theirascent towards becoming leading centersof knowledge, innovation and happiness.
Digital Transformation: the criticalsuccess factorThe most critical success factor in realizingsuch ambitious visions is DigitalTransformation. As device penetration,connectivity and new technologiescontinue to proliferate, the rate ofdisruption in traditional business andoperating models intensifies.
Governments, like businesses, will have todisrupt or be disrupted.
This is most acute in the Middle Eastwhere the population base, especially inGCC countries, rapidly adoptedsmartphone devices, posting worldleading penetration rates and exhibitingsome of the fastest digital media adoptionrates in the world in just a few years. Thisconsumer-led Digital Transformationultimately disrupted and completelychanged the way citizens communicate,consume media and information, andinteract with governments across theregion.
Governments, including in the GCC, havesince learned from this and are nowembracing Industry 4.0 – the nextindustrial revolution based on DigitalTransformation. By placing new digital andICT transformation programs at the heartof their national plans, GCC governmentsaim to reinvent themselves to better meetthe ever-changing needs not only of betterconnected, informed citizens andresidents (G2C: Government-to-Citizen),but also of businesses (G2B: Government-to-Business), employees and othergovernment entities (G2G: Government-to-Government).
The region will see the emergence of“Government 4.0”, harnessing andapplying the latest technologies andsolutions to modernize, centralize andstreamline government service delivery.
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To this end, a number of ‘digital-ICT-first’sub-strategies and programs have alreadybeen formulated. Notably, the UAE ICT2021 Strategy and UAE NationalInnovation Strategy prioritize digitaltechnology as one of the top sevennational sectors, including the applicationand rapid adoption of new disruptivetechnologies across sectors. DigitalTransformation is also a top four priority inSaudi Arabia’s National Transformation
Plan 2020 (NTP), which highlights 29essential digital initiatives for key sectorsas well as funding for national digitalassets. The Qatar Digital Government2020 Strategy targets the efficient andtransparent delivery of governmentservices, supported by a world-class ICTinfrastructure. Furthermore, Kuwait hasalso revealed an updated e-governmentprogram.
As such, the region will see the emergenceof Government 4.0, harnessing andapplying the latest technologies andsolutions such as big data and analytics,IoT, blockchain, augmented reality (AR) andvirtual reality (VR), artificial intelligence (AI),drones, robotics and 3D printing, tomodernize, centralize and streamlinegovernment service delivery, positioningthem as both innovators and disruptors,as opposed to disruptees.
However, as highlighted in the previoussection, on average, the GCC DigitalGovernment maturity level still lags behinda number of other developed economies.More broadly in the Middle East, reportssuggest that only 6 percent of thepopulation lives under smartgovernance13B. Overall, governmentsincluding those of the GCC have plenty ofwork to do.
Broadly in the Middle East, reportssuggest that only 6 percent of thepopulation lives under smartgovernance. Governments includingthose of the GCC have plenty of work to do.
Source: Official government websites and press releases, Monitor Deloitte research and analysis14
Bahrain National Planning
Development Strategy
Oman National Program for Enhancing
Economic Diversification
GCC national visions and plans
Saudi ArabiaKuwait Qatar UAEBahrain Oman
• e-government program (e.g. national datacenter, government data network, smart card)
• ICT 2020 program (e.Oman)
• e-government program
• Digital Government 2020 strategy• National ICT plan• e-government 2020 strategy (Hukoomi)
• ICT 2021 strategy• Innovation strategy• UAE TRA strategy
• NTP ICT programs (e.g. broadband expansion, ICT human capital, e-commerce)
National visions
National plans
ICT and digitalprograms
Figure 11: Cascade of national visions, plans and digital programs
Deloitte | National Transformation in the Middle East | A Digital Journey
Regional Digital Transformation agenda
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Drivers behind Digital Transformation plansSimilar to other countries across theworld, Digital Transformation in the GCC’sPublic Sector is also driven by the samefactors as alluded to in the previoussection:
• Cost and budget pressures: since thedrop in oil prices in late 2014 that hasnow curbed the revenues of oil-rich GCC countries, there is an increasedemphasis on curbing expenditures ongovernment assets and operations.Cost-savings from more efficientgovernment processes are therefore a key driver behind new DigitalTransformation programs. Not only dosuch benefits improve governments’ability to improve their budget balance,such cost-benefits also get passed ontocustomers and businesses.
• Customer and citizen demand: theemergence and popularity of socialmedia among Arabs has opened up anew channel, enabling governments andcitizens to work together. Governmentshave actively exploited this as a keychannel to obtain citizen feedback, ascitizens have also exploited this todemand greater and higher qualitygovernment services (e.g. simplifiedonline payments solutions for utilities,car parking, fines and toll gate credits).
• “Federal” government directives: atop-down approach to decision makingin GCC governments helps acceleratethe pace of Digital Transformationprograms, compared to moreconsultative processes in other nations.For Digital Transformation programs inthe Middle East to get budget approval,
two important elements are required:- Inclusion in plans: DigitalTransformation programs must berecognized and prioritized as suchwithin national visions and plans
- Swift decisions: quick decisions fromthe top will push government entitiesto enact Digital Transformation plansquickly and effectively
A good example of this is the H.H. SheikhMohammed Bin Rashid Al Maktoum UAEm-government directive in 2013 requiringgovernment services to be available andoffered via mobile within two years. Thispromptly led to an explosion of over 300UAE mobile government servicesdeveloped and launched by various UAEgovernment entities across the countrywithin just 730 days15.
In addition, the following region-specificdynamics are also compounding the needand urgency behind DigitalTransformation, especially in the GCC:
• Economic diversification: asmentioned earlier, the GCC economiesremain largely reliant on oil. Building aviable future will require them to expandtheir focus on other sectors and developnew industries:
- Strategic focus on ICT sector: GCCcountries are already the largestspenders in the region on the ICTsector, which globally is also enablingthe birth of new technologies andsolutions behind Industry 4.0advancements. Focus and importanceon this industry is therefore a keyenabler and driver behind nationalDigital Transformation efforts
- Modernization of other industries:sectors such as education, healthcareand tourism are also key to economicdiversification. These governments arealready making significant investmentsin Digital Transformation efforts tomodernize these sectors and unlockgrowth
• Security: over the years, the region’sgovernments have also beenexperiencing and combatting increasinglevels of security threats:
- National Security: GCC governmentshave seen an upsurge in conflict zonessurrounding their territories. Nationalsecurity and citizen safety remain apriority, driving investment in state ofthe art digital security systems andsolutions
- Cyber security: These governmentshave also become increasingly afflictedby cyber-attacks. As national data,assets and operations becomeincreasingly digitalized in the region,cyber security becomes ever-moreparamount. Recognizing this,governments are investing instrengthening their cyber securitycapabilities. In turn, improved cybersecurity, not just in terms of improvedonline defense systems but also interms of laws and regulations (e.g.minimum security measures, dataprotection), will reinforce governmentand stakeholder confidence in thecontinued digital advancement towardsGovernment 4.0.
Regional Digital Transformation agenda
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• Mega events: although many programshave arisen out of a need to addressnew challenges, significant investmentsin Digital Transformation programs arealso needed to enable as well as supportthe successful delivery and managementof positive mega-events in the regiontaking place over the next five years.Namely the Dubai Expo 2020 and Qatar2022 FIFA World Cup.
Key Digital Transformation initiativesTransformation initiatives do not only aimto modernize governments, their reachextends to entire industries, economiesand the way society functions at largewithin these countries.
The first section looked at key future ofgovernment trends (Gov2020) that weremost prevalent in the Middle East, andclustered them as key regional themes:Classroom of the Future, Next GenerationCare, Smart Tourism, Future of Mobility,Smart Government and Smart Cities.These were based on expert views, marketresearch and interviews with keygovernment entities in the GCC.
These themes are at the core of the GCCDigital Transformation agenda and areexplored in more depth in this section.
Figure 12 gives an overview of key DigitalTransformation initiatives across eachtheme that have arisen out of new GCCcountry visions, modernization plans and‘digital-first’ programs.
Saudi Arabia
12 0302 0209 01
Kuwait
Qatar
Classroom of the Future
Next GenerationCare
Smart Tourism
Future of Mobility
Smart Government
Smart Cities
UAE
02 0200 0101 01
04 0403 0405 04
08 0904 0404 03
National plans
ICT and Digital Initiatives
Figure 12: Key digital initiatives under national visions and plans
Note: The above represents a sample of key digital initiatives, which is not exhaustiveSource: Official government websites and press releases, Monitor Deloitte research and analysis16
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In the discussion that follows, this sectionexamines more closely the DigitalTransformation journey of thesegovernments while exploring the role,progress and impact of some of theseinitiatives. As such, each theme is exploredin depth based on a seven stepmethodology:
1. Definition2. Key digital initiatives & outcomes3. Delivery method4. Investment5. Status6. Challenges & needs7. Outlook
Deloitte | National Transformation in the Middle East | A Digital Journey
DefinitionKey digital initiatives & outcomes
Deliverymethod Investment Status
Challenges & needs Outlook
Define the theme in terms of how technology and digital solutions are addressing key issues disrupting the public sector
Highlight and analyze key digital initiatives in the GCC and the desired outcomes these initiatives seek to achieve
Review how GCC governments are approaching and implementing digital initiatives (e.g. delivery models)
Understand the scale of spend and investment involved to deliver key GCC digital initiatives
Assess the level of progress GCC governments have made in implementing key digital initiatives
Identify key challenges GCC governments are facing once implementing digital initiatives
Evaluate the future potential of the theme in the GCC and highlight key opportunities based on the theme’s analysis
Industry examples
Theme definition
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GCC examples
Types of digital initiatives & outcomes
GCC examples
Delivery models used
GCC examples
Progress indicators
GCC challenges and needs
GCC opportunities
Deloitte outlook
Deloitte & Huawei
experience
Deloitte & Huawei thought
leadership
Deloitte & Huawei subject matter experts
Government interviews &
surveys
Government visions, plans &
data
Theme-specific industry reports
Theme research & analysis
Indication of investment
GCC examples
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Figure 13: Theme deep-dive content and study methodology
Next Generation Care
23
DefinitionAt its simplest, Next Generation Care ischaracterized as:
• Pervasive: accessible everywhere, low-cost
• Preventative: information andawareness on vaccinations, pregnanciesand healthier lifestyles
• Efficient: real-time health checks,diagnoses, health insurance claimsprocessing and emergency services
• Personalized: tailored to individuals’genetics or DNA, body-types,preferential or other needs
• Higher quality: less invasive and lesspainful for improved patient experience.
Existing and new technologies arefundamental towards achieving NextGeneration Care (next-gen care), withnumerous examples of use cases thatinclude m-health apps, remotemonitoring, ingestible data-generating IoTsensors, holographic and robotic assistedsurgery, to name a few.
Key initiatives and expectedoutcomesHealthcare remains a top concern for GCCgovernments, as citizens have beenincreasingly suffering from major publichealth illnesses such as obesity, diabetesand heart-disease. Providing care is alsovery costly as these governments offernational health services as a state benefitto citizens, employ a sizeable public healthworkforce (doctors, nurses), own andoperate many assets (hospitals and clinics)and have to effectively manage service
delivery, requiring large budgets to sustainoperations.
This, coupled with new economicrestrictions and other aforementionedDigital Transformation drivers, has led to arange of digital initiatives which not onlyaim to resolve public health issues asnoted above, but also develop a world-class next generation public healthservice. This, in turn, stimulates innovationand economic growth in the sector as awhole to support diversification. Throughsuch next-gen care initiatives, GCCcountries are also seeking to attract topmedical talent and tourists from abroad todevelop their med-tourist markets.
To this end, new digital initiatives of thesegovernments broadly cover four maincategories outlined in the figure below.
Next Generation Care
Deloitte | National Transformation in the Middle East | A Digital Journey
NNEEXXTT GGEENNEERRAATTIIOONN CCAARREE
Health-tech innovation
Engage in R&D of ICT and new-technology-based healthcare services and solutions
Online preventative health
Digital awareness campaigns to encourage health checks and healthier lifestyles
2National e-health systems
Ongoing implementation of national electronic medical records and integrated national health systems
3 4Virtual and mobile health services
1KKeeyy IInniittiiaattiivveess
Enable patients to access healthcare easily online and on-demand through digital devices
Figure 14: Key types of Next Generation Care digital initiatives
24
Virtual and mobile health services: These services enable patients to accesshealthcare easily online and on-demandthrough their mobile devices, withouthaving to visit hospital facilities only to waitin long queues to be served. Such servicesalso reduce the burden and costs on statehealthcare facilities by eliminatingunnecessary hospital visits by patients.Similarly, telemedicine is another serviceenabling access to wider pools ofpractitioners via consultations fromremote locations over digital media.
For example, Qatar’s Smart HealthcareOn-Demand initiative aims to offer newservices which include a digital self-diagnosis platform (based on algorithmsto process step-by-step digital checklistspin-pointing various symptoms forpatients), Doctor Finder, an appointmentservice, and virtual doctor consultationsthrough telemedicine (enabling patients toconnect to doctors via online video chatwith digital transmission of medicalimaging and health informatics)17. UAE’sAbu Dhabi Telemedicine Centre alsoprovides a similar service with a freemobile application allowing patients toremotely share photos assisting theirdiagnosis (e.g. photos of an affected areaof the body, medication labels)18.
National e-health systemsKey initiatives include the ongoingimplementation of national electronicmedical records and integrated nationalhealth systems:
• Electronic medical records: Theprocess of centralizing patient dataacross the health system. For example,UAE’s Ministry of Health and Prevention’sNational Unified Medical Record (NUMR)project (which started in 2016) aims tocentralize patient data and analytics forcommon use by all providers nationallystreamlining diagnoses and treatments19.Qatar’s Single Patient Record project (aunique national patient record system)seeks the same20. Saudi Arabia’s NTPaims to expand its efforts to digitizepatient data, targeting 70 percent of allSaudi citizens to have a unified digitalmedical record by 202021.
• E-integrated national healthsystems: connecting differenthealthcare ecosystem players (e.g.patients, practitioners, hospitals, clinics,pharmacies, test labs, investors,regulators) to provide a seamlesslyconnected experience for all,representing a key step in digitallytransforming GCC countries’ healthsystems.
Qatar’s updated National E-Health andData Program (QNeDP), formulated in2015, outlines a blueprint and set ofphased implementation plans behind theintegration of various national healthmanagement systems (e.g. e-referral,pharmacy, virtual medicine), health datasystems, clinical repositories (e.g. clinicaldata, medication inventory) and externalconsumer systems (e.g. patient medicalrecords and accounts, population healthsystems)22.
In the UAE, the Emirates ID and healthinsurance services are also integrating,enabling residents to use their Emirates IDas a national health insurance card acrossthe country, whilst also expanding data onthe national citizen database23. TheMabrouk Mayak service by the UAEMinistry of Health and Prevention(MOHAP) is another good example. Itenables rapid completion of allcertifications for new-born Emiratis (e.g.birth certificate, ID card, passport) byreducing required interactions and visitsfrom seven different government entitiesto just one24.
Saudi Arabia’s NTP plan is targeting70% of all Saudi citizens to have aunified digital medical record by 2020.
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Online preventative healthInitiatives include digital awarenesscampaigns to encourage health checksand healthier lifestyles.
For example Saudi Arabia’s newlylaunched Rashaka program, a majorhealth awareness campaign which aims tohelp reduce obesity rates in the Kingdomby 5 percent by 2020, is employing the useof digital social media channels andincludes organizing competitions in Saudischools to develop mobile healthawareness applications25.
The Health Authority of Abu Dhabi’s(HAAD) Weqaya program for instance is ahealth screening program for Emiratiswhich allows them to check their healthstatus and obtain follow up consultationsif at risk of any diseases. At the same time,it also enables HAAD to rapidly extractdata from screening results for variouspublic health studies26.
Qatar’s Connected Wellness initiative alsoincludes a Digital Health Coach Service,which uses smartphones and wearables,monitoring food consumption and activitylevels to provide real-time user specifichealth advice. Data collected from theservice is even integrated with patientrecords and monitored by healthprofessionals to provide continuousguidance27. Further, Qatar’s Active Nationsports initiative also contains severalservices encouraging residents toparticipate in more sporting activities28.
Health-tech innovationGCC governments are also activelyengaging in and encouraging more R&D inICT, as well as newer technology-basedhealthcare services and solutions.
UAE’s Innovation Strategy for instancecites health as a priority sector of focus. As such, Dubai’s Dubai Biotechnology and
Research Park, DuBiotech, is a new freezone for life sciences and health techcompanies29. Government-backed Falconand Associates has also launched theDubai 100 accelerator program, anintensive 100-day program to support andaccelerate digital health start-ups andencourage the growth of young talent inthe digital health sector30. Health-techstart-ups supported by this programinclude Singapore’s AEvice health, workingto develop a wearable device to diagnoseasthma earlier, as well as ArgentinianOTTAA, which is using predictivealgorithms to help speech-impairedpeople communicate through images31.
Similarly, Saudi Arabia’s MiSK foundationhosted the first ever UK-KSA dual-nationMedical Internet of Things hackathon lastyear to develop technology solutions tothe world’s most challenging health andmedical problems32.
Delivery methodHealthcare is a specialized field and thescale and complexity behind the range ofnext gen care initiatives are significant. Assuch, GCC nations are driving thedevelopment and implementation of NextGeneration Care initiatives throughvarious public-private partnerships (PPP)with a wide range of private sectorcompanies. In Saudi Arabia, the NTPactually targets a significant increase in theparticipation of the private sector, with thegoal to increase the private sector’s share
of the Kingdom’s total healthcare spend bymore than 10 percent by 202033. The NTPalso advocates shared public-privatebusiness models34.
To this end, Saudi Arabia’s Ministry ofHealth signed a Memorandum ofUnderstanding (MoU) last year withGeneral Electric (GE). The partnershipfocuses on enabling and acceleratingDigital Transformation of KSA’s healthsector, in which GE would provideadvanced technical solutions such ashealth system control centers, simulationcenters, virtual hospitals, improved patientexperience in health facilities andextraction of cost-efficiencies35. SimilarlyUAE’s MOHAP partnered with digitalhealth company Purehealth to implementthe NUMR system36. Qatar is also in thetendering process for the implementationof the Smart Healthcare initiatives of itsTASMU program37.
InvestmentInvestments required to deliver such largescale and complex transformationinitiatives are also significant. Analystsreport that MENA’s medical ICT spendinghas reached a record high of US$3 billion,largely attributed to GCC countries38.Saudi Arabia’s NTP for example hasreportedly earmarked almost US$1.6billion in investment in Next GenerationCare (electronic health) initiatives for thenext five years (i.e. US$320 million peryear)39. UAE’s Innovation Strategy alsorequires government entities to set asideat least 1 percent of their budgets forinnovation. With healthcare representing8.6 percent of the UAE’s US$67.5 billion2017-2021 national budget, thisrepresents a minimum potential US$58million in R&D investment40. Similarly,Qatar’s drive for investment in healthsystem modernization has led to largescale health system contracts. An exampleof this is the US$28 million contract signed
The “Dubai 100”accelerator programme is an intensive 100-dayprogramme to supportand accelerate digitalhealth startups.
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between TTP Middle East and Qatar’sIntegrated Intelligence Services (IIS) toimplement a nation-wide electronic healthrecord (EHR) system41.
StatusAs a result of the plans and investments,GCC governments are progressingtowards Next Generation Care and theirstrategic goals at their own pace.
The UAE, as part of its more developedsmart government program, has had themost time to develop its next generationinitiatives, which are now largely in theimplementation stage, if not live already.For example, Abu Dhabi’s TelemedicineCentre is now a reality as it has, accordingto reports, successfully engaged with andscreened most adult UAE nationals basedin Abu Dhabi. Other aforementionedservices such as the integration of theEmirates ID with the health insurancesystems have also taken off, but needsome time to be fully adopted andaccepted by all of UAE’s health insuranceproviders. Mabrouk Mayak has also justcompleted pilot testing and is poised toroll out across the country.
Saudi Arabia, dealing with a much largerpopulation and scale of healthcare systemhas progressed in its own way as well. Forexample the KSA’s Ministry of Health hasalready launched systems of e-healthrecords, picture archiving,communications, cloud computing, andtelemedicine as well as an electronicsystem to register and follow up on criticalmedical errors. Supporting this, it has alsoadopted data and interoperabilitystandards, implemented digital healthfriendly regulations (around health IT,medical devices, data privacy, security andtelecommunications) and has establisheda dedicated department for overseeingand implementing e-health projects.
However, unifying thousands of healthcarehospitals and facilities is no small feat, andas such will still require some time beforeit is complete. Although Saudi Arabia laidmost of the groundwork required toimplement its initiatives and hasconnected most public health facilities, itstill reportedly has to also reflectimprovements on areas such as patientexperience.
Qatar, as reported in industry interviews,is following its own journey. The countryhas upgraded its plans as part of its newTASMU smart government framework, andis now entering a pilot stage to test proofof concepts behind Next Generation Careinitiatives.
Kuwait at the moment is focused ondeveloping its traditional physicalinfrastructure (i.e. building more hospitals,clinics, medical facilities) and is yet torelease further plans on digital health andNext Generation Care. However, digitalhealth initiatives are inevitably expected tobe announced in the near future as partof health sector transformation drivers.
Current challenges and needsIn developing and implementing NextGeneration Care initiatives, regionalgovernments face a number of challengesand needs:
• Rising patient expectations: forbetter access to higher quality of healthcare services that meet all patientdemands. New and improved servicesemanating from Next Generation Careinitiatives need to ensure they considerpatient feedback, placing them at thecenter of solution and service design.
• Data integrity, privacy and security:patients still have several health records,holding at least one per provider,contributing to data fragmentation andthe duplication of services. Sensitivepatient data also needs to be protectedand secured. Governments will need toadopt clearer data and securitystandards in their health systems, notjust to maintain the data, but also toenable interoperability of data.Blockchain is being explored and appliedas one solution.
• Rural connectivity: despite operatorshaving expanded broadband networksconsiderably, many rural areas are stilldifficult to reach, as residents may notpay high rates for such services.Cheaper and more practical wirelesssolutions will need to be employed toensure that affordable infrastructure isthere for those that may need NextGeneration Care the most.
Saudi Arabia’s NTP for example hasreportedly estimated almost US$1.6billion in investment in Next GenerationCare (electronic health) initiatives forthe next five years.
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• Implementation rates vs. diseasetrends: Next Generation Care initiativeswill have to be implemented faster thanthe rise in diseases (e.g. obesity,diabetes, heart diseases) afflicting patients, if they are to meet outcomesand KPIs directed at reducing diseaserates.
• Health and ICT expertise: there is stilla heavy reliance on expatriate healthprofessionals and health technologyspecialists leading to a huge variation inhealthcare quality. Governmentsrecognize this as a key issue and haveset targets for locally trained anddeveloped professionals. However, thisis a process that may take time, andgovernments will have to work closelywith more experienced private sector providers to enable adequate e-healthprogress and knowledge transfer.
OutlookLooking forward over the next five years,GCC countries are expected to sustainstrong ICT investment levels towards NextGeneration Care systems anddevelopments, a central element to theirnational e-health visions and plans.Analysts are forecasting the MENAhealthcare market, predominantly drivenby GCC markets and their national healthbudgets, to nearly double from US$40billion in 2015 to US$71 billion in 202042.This corresponds to ICT investment in theDigital Transformation of the health sectorwhich is likely to increase at least at asimilar pace.
This opens up a suite of opportunities forhealthcare providers, telecoms players, ICTvendors and health-tech start-ups alike.
As national health in the GCC becomesincreasingly digitized and connected, both
the scale of their healthcare systems andcorresponding demand for ICT servicesand solutions will increase. Data centerswith secure servers, security and privacyprotocols will be needed to storeincreasing repositories of patient healthrecords. High performance telecomnetworks and services will be needed toconnect data servers and facilitate healthinformation exchange between expandingnumbers of hospitals, clinics, pharmacies,ambulances and other medical facilities.Data mining and analytics capabilities willbe needed to draw insight, advancemedical research and be used for publichealth policy measures. On top of thefoundation systems and networks,advanced technologies and solutionsusing IoT, VR and AR, once proven afterpilot phases, will also be needed to trackand improve patients’ health andexperience.
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Major expansions to GCC health facilities will drive government spending on installed devices, telecom & internet, servers, data centers, cloud and security services
Significant government demand to build/expand national systems that are in infancy. Solutions for system interoperability between health players will also be needed
Rising adoption of Electronic Medical Records and digital health is driving demand for blockchain solutions to protect and maintain sensitive patient data
Needed to accommodate growing population, smartphone adoption, rising patient expectations and reduce health costs. Such services are emerging with fast growth
Digitization of patient data is creating a massive new market for data analytics services such as diagnosis, predictive disease analytics, AI, cognitive assistance
• Catalyst to growth in health & ICT sectors for diversification
• Significant reduction in OPEX of public healthcare services
• Reduced CAPEX for physical health facilities and assets
• Cheaper, easier and faster access to public healthcare
• Employment opportunities• More efficient, effective care will slow
disease trends, improving quality of life and happiness
• Paperless documentation (e.g. electronic patient records, digital imaging, e-claims)
• Reduced wastage (e.g. more accurate prescriptions and consumption of medicines, hospital supplies)
Top opportunities
Economic
Social
Sustainable
Key impacts
Figure 15: Top opportunities in Next Generation Care and key impacts
Deloitte | National Transformation in the Middle East | A Digital Journey
Classroom of the Future
29
DefinitionClassrooms of the future represent thetransformation of the traditionaleducation systems that are based onlearning techniques driven by textbooksand standard teacher-student learninginteractions to modern, digitally-enabledlearning that exponentially enhances thestudent experience. Forming a criticaldriver to digital education, it ensures fullcircle access to information andknowledge for students while alsopreparing them to adapt to newtechnology and skills to eventuallycontribute into society and the economy. AR applications will be a common featurein this classroom of the future, wheretextbook diagrams are replaced byapplications driving AR-supported,immersive learning experiences. Thedigitalization of the classroom inherentlybuilds its capabilities, leveraging digital andICT technologies across cloud computing,mobile, social media and analytics amongothers that work in an ecosystem ofproviders, federal entities and institutionsto deliver the experience.
Key initiatives and expectedoutcomesRegional education initiatives across KSA,UAE, Qatar and Kuwait are focusing onshifting the cultural paradigm of educationfrom the traditional model of fixedcurriculum and textbook-based classes toapplying new creative methods of learningand enhancing the classroom experience. Some of the trending initiativesundertaken by the Public Sector acrossthe GCC are shown in figure 17.
Classroom of the Future
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ICT and technology providers
Devices and gadgets
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Federal entities
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Influence of ICT technologies across all sectors of the economy
Use of ICT technologies by relevant entities
Incorporation of apps, platforms, devices in education curricula
Figure 16: Classroom of the future ecosystem
Smart Education Systems
1Online Platforms
2ICT Content Focus
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Self-taught flexible learnings through available online courses
Enhanced ICT content in school curricula and an emphasis on digital literacy
Education that is based on digital devices rather than textbooks
Figure 17: Key types of Classroom of the Future digital initiatives
Deloitte | National Transformation in the Middle East | A Digital Journey
Smart education systemsGovernments are focusing ontransforming classrooms to become moretechnology-centric and improve oninformation access by incorporating theuse of technologies throughout learningactivities in schools. The importance ofdigital literacy at younger ages is alsoimperative in preparing students for lifeafter school.
A good example of this shift is theapplication of digital in reforming theeducation systems from the traditionaltextbook-based classrooms to ‘onlineflexbooks’. The Mohammad bin RashidSmart Learning Program in the UAE43,KSA’s Ministry of Education (MOE) andQatar’s Supreme Council have alreadyreplaced textbooks with tablets andgadgets with the intent to enhance overalleducation systems to be more digitallyoriented.
These digital systems are creating moreinteractive classrooms where teacherseffectively communicate and retainstudents’ attention while increasingstudent interaction. For the KSA’s MOE,this initiative delivers on a key KPI which isenhancing student and parentsatisfaction.
Online platformsGovernments have also mobilized effortsto address the rising cost of educationand the large gap between the quality ofeducation supplied and the rising demandin growing GCC populations. Efforts arebeing made to ensure learning isaccessible and flexible to all individualsacross a vast range of both subjects andskillsets through available e-learning andonline courses.
Furthermore, cost-effective solutions suchas e-learnings, e-trainings and MassiveOpen Online Courses (MOOCs) haveemerged across the GCC. For example,
as part of KSA’s NTP, the Kingdomlaunched a national program for e-trainingunder the Institute of PublicAdministration44. Similarly, Doroob, aneducation and professional trainingplatform sponsored by the Saudi Ministryof Labor and Social Development (MOLSD)focuses on bridging the gap between theeducational system and the requirementsof the labour market to achieve higheremployment rates specifically amongyouth and women. Updates of the NTP 2.0focus on female participation andproductivity in the workforce, whereplatforms such as Doroob are likely to beemphasized further.
30
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Figure 18: Doroob program and ambitions
Note: course listings shown above are not exhaustiveSource: Deloitte research and analysis, Doroob website
Deloitte | National Transformation in the Middle East | A Digital Journey
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The success of these online platforms isdriven by underlying digital initiativesundertaken by GCC federal entities. A good case is the Noor EducationManagement System from the MOE in KSAwhere schools, teachers and parents arebeing digitally linked into an educationmanagement system.
ICT content focus and digital literacyWith global changes emphasizing theimportance of technology andcommunication, the Middle East hasbecome increasingly aware ofincorporating more technical ICT skills inschool curricula. There is an enhancedfocus on subjects related to IT,programming, digital technology anddesign innovation, fueled by GCC visionsthat prioritize digital and connectedsocieties.
Governments are investing in initiativesthat increase awareness of ICT and digitalprograms such as exponentialtechnologies, digital technologies andcyber security. Through entities like theUAE’s Telecommunications RegulatoryAuthority (TRA), and the Communicationand Information Technology RegulationAuthority (CITRA) in Kuwait, for example,there are efforts under way incollaboration with universities to fund
these type of programs. The TRA in theUAE has made collaborative efforts withthe Ministry of Education and the UnitedArab Emirates Computer EmergencyResponse Team (aeCERT) in providingcontent learning programs on cybersecurity as well as contributing to core ITcurricula developments such as coding45.
Furthermore, initiatives that aim toimprove digital literacy skills are expandingbeyond schools and youth. Elderly arenow being encouraged to learn and adaptto modern technology and overcome thedigital generation gap. The Ministry ofTransport and Communication (MOTC) inQatar launched Wasla, a projectencouraging youth to teach digital literacyskills to the elderly. The young ‘teachers’are trained and equipped with tools toguide the elderly through digital andtechnical material46.
Delivery methodGovernments are proactively exploringnew ways to modernize their educationsystems. A popular method being adoptedby regional governments are specialistdigital learning R&D centers which serveas innovation labs to test new learningmethods and tools. A good example ofthis is the UAE Ministry of Education’spartnership with Etisalat and Microsoft to
establish the Etisalat EducationTechnology Center47. The center focuseson continuous efforts in R&D toexperiment with and design neweducation tools in line with the country’sdirection to implement digital schools andsmart learning. The UAE’s ICT Fund isplaying a role in enhancing the overall ICTfocus in universities by funding specificprograms.
Moreover, to realize the future classroominitiatives, governments are working veryclosely with key private sector players,forming PPPs, which include educationaltechnology vendors and specialists. Forexample, in Saudi Arabia, the governmenthas partnered with EdX to deliver theDoroob MOOC initiative based on morethan 1,600 courses and programs fromEdX’s extensive course library48.
Furthermore, a national center for e-learning has also been launched in SaudiArabia under the MOE promoting thelearning of specific technical skills, toolsand programs. The center providesservices ranging from training services ondesigning content, upgrading quality e-learning standards, teaching users how todesign and manage modules and settingstandards for digital content49.
The Middle East has becomeincreasingly aware of incorporatingmore technical ICT skills in schoolcurricula. There is an enhanced focus insubjects around IT, programming, digitaltechnology and design innovation.
In Saudi Arabia, thegovernment haspartnered with EdX todeliver the DoroobMOOC initiative based onmore than 1,600 coursesand programs from EdX’sextensive course library.
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InvestmentGiven the scale of change, the newnational transformation plans seek toinvolve various third parties (NGOs, EdTech, small and medium-sized enterprises(SMEs), tech giants, telecom operators)required to deliver these initiatives. Thelevel of government investment issignificant, exceeding hundreds of millionsof dollars. To complete smart learningprograms, government spending oninitiatives to deliver classrooms of thefuture is approximately US$272 millionover a five-year period in the UAE50, andapproximately US$430 million in KSA overthe next four years51. The UAE’sinvestment in digital is in line with itsoverarching aim to invest US$2.72 billionin education with a focus on transformingthe IT infrastructure in schools52.
StatusGCC government efforts focusing ontransforming current education systemsto classrooms of the future have beenprogressing in the right direction. Whilethe UAE and KSA have made obviousefforts to fully adopt digital classrooms,each country has progressed differentlybased on its vision and scale.
Given the smaller market and its five-yearold vision, the UAE seems to be the mostadvanced GCC country in its adoption ofsmart classrooms. The Smart LearningProgram, implemented in 2012,succeeded in fully adopting digital devicesacross all public and private schoolclassrooms. UAE schools are utilizingSamsung tablets and Smart Boardsinstalled with tools by ITWorx, allowingteachers to develop and teach interactivelessons and communicate with studentsand parents alike. Students also have theflexibility of reviewing e-lessons andaccessing textbooks offline and at home53.
The KSA, while progressing towards smarteducation, is still in its early stages due tothe scale of implementation. Phase 1 of itssmart classrooms was expected to beginthis school year, covering 150 schools,while Phase 2 will include 1,500 schoolsuntil all 30,000 schools in the Kingdom are
complete over a four-year period.Furthermore, the possibility of setting up a tablet factory collaboratively with a specialized company is still underconsideration. Surveys have beenconducted globally that demonstrate thatmind sets are becoming more accepting of
Government spending on initiatives todeliver classrooms of the future wereapproximately US$ 272 million over a 5-year period in the UAE and isapproximately US$ 430 million in KSAover the next 4 years.
Deloitte | National Transformation in the Middle East | A Digital Journey
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Major expansions to education institutions will drive government spending on installed devices, telecom & internet, servers, data centers, cloud services
Significant government demand for digital devices and digital solutions to enhance classroom interactivity and learning (e.g. digital flex books, touchscreen)
Visions to convert curriculum into digital content. Enhanced efforts to drive a knowledge economy through subjects related to IT, software & digital
Driven by smart education systems leveraging AR & VR to act as interactive teaching tools, hence delivering the next generation of immersive learning
Increased online learning will generate data on course & student performance. Analytics & AI can improve course & curriculum design to fill knowledge/skill gaps
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• Growth in education, ICT sectors • Innovation and productivity• R&D and focus on knowledge economy• Reduced public education OPEX• Reduced CAPEX for physical education
facilities and assets
• Digital literacy and skills• Cheaper, easier, more flexible and faster
access to education• Employment opportunities• Social cohesion, development• Quality of life and happiness
• Paperless documentation (e.g. electronic student records, flexbooks, e-applications)
• Reduced wastage (e.g. stationary, school supplies)
• Sustainable literacy growth
Top opportunities Key impacts
Figure 20: Top opportunities in Classroom of the Future and key impacts
Deloitte | National Transformation in the Middle East | A Digital Journey
technological transformations in theeducation system54. 90 percent ofstudents are already using digital materialas they are more inclined to learn in theseinteractive methods. Moreover, 75 percentof teachers believe that digital learningcontent will completely replace printedbooks over the next 10 years. Suchstudies are convincing of the behavioralshift towards digital education acrosspopulations55.
Current challenges and needsThere still remains a vast opportunity forPublic Sector entities to transform theeducation sector. Connectivity acrosseducational institutes among themselvesand in relation to government entitiesremains a major challenge in most of theGCC. There are efforts underway led byfederal entities to bring service providersand other connectivity players such as ICTvendors to address this.
Driving innovation into the publiceducation system is another challenge
which is currently being addressed viaPPP’s where the private sector is alsohelping to drive this DigitalTransformation.
Public Sector entities have the opportunityto engage in further developments togrow the educational technology sectorwith more progressive initiatives such asAlef, a more advanced online trainingplatform that leverages content poweredby AI and big data analytics.
The centralization of education data andits governance through designated bodiesis another critical need in the GCC for theclassroom of the future to succeed.
OutlookThe opportunity to enrich the educationsector’s digital advancement is evident inthe GCC, especially for Qatar and Kuwait,whose education sectors are stilldeveloping towards more technologicallyoriented systems versus that in the UAEand KSA. Governments will need to
leverage the private sector, non-profitsector, universities and schools to fostercreative thinking towards technology andits influence on institutions.
Science, technology, engineering and math(STEM) subjects will become a priorityacross the GCC as students will beincreasingly encouraged to follow a paththat guarantees secure, demanded jobs. Furthermore, the UAE has just announcedits plan to establish approximately 122Innovation Libraries in schools, while asimilar investment in innovation labsacross schools is expected to supporttechnology related programs and enhancestudents’ technological skills56.
Education for the disabled supported bynew digital technologies will also beprioritized by government entities in theGCC. Assistive technologies such asspeech synthesizing software, text-to-voicetools and electronic worksheets will takeprecedence for investments to ensurequality learning.
Smart Tourism
35
DefinitionSmart Tourism is the use of ICT topromote travel and tourism by enhancinga visitor’s overall experience.
Key initiatives and expectedoutcomesTourism is a highly strategic sector as it isnot only key to unlocking economicdiversification and growth for GCCcountries, but also instrumental inbuilding a nation’s image and positioning it on the world stage.
In the UAE, tourism is so important thatindividual tourism visions are outlined foreach emirate. Abu Dhabi, for example,aims to become one of the world’s mostattractive places for tourists57. Dubai istargeting 20 million per year by 2020(double 2012 levels)58, Sharjah is targetingten million tourists per year by 202159 andRas Al Khaimah aims to attract one milliontourists per year by 2019 (end of 2018)60.
Qatar, in the year of the FIFA World Cup,aims to attract four to five million visitorsin 202261. The KSA, with its captive
religious tourism market, seeks to boostits Hajj and Umrah tourist figures(domestic and foreign) from 7.5 millionper year in 2016 to 17.5 million per yearby 202062. It also wants to increase itsoverall tourist figures (domestic andforeign) from 64.5 million in 2016 to 81.9million per year by 202062. Kuwait, as partof its new vision, has also highlighted thedevelopment of its national tourism sectoras an economic priority63.
Digital initiatives to support theseoutcomes fall into four main categories:
Smart Tourism
Event Platforms
Digital platforms designed specifically to support key events and visitors being hosted in the country (e.g. concerts, matches). This can include digital media coverage, e-ticketing, event data gathering & analytics and visitor services (e.g. virtual guides)
Advanced Digital Tourist Guides
Application of mobile and advanced technologies such as Internet of Things and augmented & virtual reality to provide tourists more personalized travel, tourism and navigation information to help facilitate and ease their trip
1Smart Loyalty & Incentive Programs
Universal platform for loyalty and rewards applied through blockchain technology, enabling tourists to collect points and redeem rewards across the city for sites and attractions they visit, promoting tourism activity
2Unified TravelPasses
Use of a single digital device or online service to minimize manual interactions when moving through various travel checks (e.g. security, immigration, tickets)
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Figure 21: Key types of Smart Tourism digital initiatives
Deloitte | National Transformation in the Middle East | A Digital Journey
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Advanced digital tourist guidesApplication of mobile and advancedtechnologies such as IoT, AR and VRprovide tourists with more personalizedtravel, tourism and navigation informationto help facilitate and ease their trips.
In the UAE, the tourism and cultureauthorities of Dubai and Abu Dhabi haveeach developed award winning digital tourguides to showcase and enhance thevisitor experience. Dubai Culture and VisitAbu Dhabi smartphone services bothintegrate a range of tourist informationand services (e.g. tourist tips, interactivetourist maps, day trips, in-app hotel, traveland taxi bookings, experience sharing viasocial media) and apply technologies suchas AR to enhance interaction with pointsof interest and key attractions64, 65. To thisend, the RTA has also released a newNahaam tour guide system, givinginformation about landscapes androutes66.
Saudi Arabia’s tourism authority alsoreleased an award winning mobile touristguide called Saudi Tourism67. Movingforward, the Saudi Ministry of Haj andUmra is developing e-learning programs toraise awareness for visitors and provide e-training for its workers and volunteers tocontinue improving information andguidance services for pilgrims68.
Qatar also aims to upgrade its digitaltourist guides. Its new Digital Travel Guide,for example, aims to deliver location andpreference-based points of interest,events, public transportation schedulesand offers. The service features Near FieldCommunication (NFC) and biometricenabled identification, an automated dayplanner service and online touristfeedback. In conjunction with this, Qatar isalso launching Contextual IndoorNavigation, providing indoor informationdelivery and ‘turn-by-turn’ navigation forkey points of interest such as the airport,malls, stadiums and landmarks. Qatar’sAugmented City service based ongeospatial information and mobile videorecognition technologies will also provideassistive contextual real-time information(e.g. descriptive text, interactive videos,targeted offers and event information) ontop of smartphone device screens69.
Unified travel passesUse of a single digital device or onlineservice to minimize manual interactionswhen moving through various travelchecks (e.g. security, immigration, tickets).
Qatar’s Single Transport Pass, for example,will create a single traveler profile whichenables tourists to travel using Qatar'sdiverse transportation mediums throughe-ticketing and e-payment functionalitieson NFC based cards, smartphones andwearables devices70. In the UAE, Dubai’s
new Smart Wallets and One Gateinitiatives will also allow travelers, basedon automated biometric facial recognitiontechnology, to use their smartphonesinstead of their passport or express gatecards at Dubai International Airport tomove through immigration, accesslounges and other touch-points moreseamlessly71. New smart gates thatsupplement existing e-gates will offer anautomated border control system assecurity. Furthermore, immigration checkswill integrate through biometric validationas travelers pass through the new gates72, 73.Last year, Saudi Arabia’s Ministry of Hajintroduced mandatory ‘e-bracelets’ for Hajjpilgrims – QR and barcoded wristbands,enabling authorities using smartphones totag, identify and track pilgrims, as well asto differentiate between genuine andillegal pilgrims74.
Dubai’s new SmartWallets and One Gateinitiatives will also allowtravelers, based onautomated biometricfacial recognitiontechnology, to use theirsmartphones instead oftheir passport.
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Smart loyalty and incentive programsA universal platform for loyalty andrewards applied through blockchaintechnology, enabling tourists to collectpoints and redeem rewards across the cityfor sites and attractions they visit,promoting tourism activity.
Dubai Points, a new scheme supported bythe Dubai Future Foundation, allowstourists to dynamically earn and redeempoints at participating locations based ontheir unique preferences, lifestyle andother data points (e.g. time of day, pastbehavior, location, age). Points inexchange for tourist data also enablemore customized and personalizedincentives. They can be aligned withpreferences to encourage tourists to visitother locations that would maximize theirvisit, while being rewarded with points. Theadvanced incentive scheme is claimed tobe a world-first in the tourism industry,supporting national happiness ambitionsand Dubai’s objective to be the world’shappiest city by 202075.
Event platformsDigital platforms designed specifically tosupport key events and visitors beinghosted in the country (e.g. entertainmentconcerts, sports matches, conferences,meetings, exhibitions, conventions). Thiscan include digital media coverage, e-ticketing, event data gathering andanalytics and visitor services (e.g. virtualguides).
For example, Dubai’s Expo 2020 aims tobe ‘one of the fastest, smartest and mostconnected places on earth’. The event willbe designed to offer a complete andseamless digital experience for visitorswith digital services ranging frominformation security, customer relations,geolocation, augmented as well as virtual
assistance and tour guides76. In addition,Dubai’s Department of Tourism andCommerce Marketing (DTCM) has alsointroduced e-permit and e-ticketingplatforms to support and develop Dubai’sgrowing events sector77.
In the build up to the FIFA World Cup,Qatar as part of its TASMU smartgovernment program is also developing asuite of digital sports services to supportthe event. Examples include a universalDigital Fan Pass, a social Fan Connectplatform, Event Visit Planner and EventCompanion application to provide event-specific information to visitors78.
Saudi Arabia’s Ministry of Culture andInformation (MOCI) this year alsointroduced two new platforms to supportthe annual Hajj pilgrimage. The newplatform SaudiWelcomesTheWorld.org,tells the stories of the millions of Hajjpilgrims across the world, providing aninsight into their journeys and inviting theworld to learn, understand and appreciatethe Islamic faith and tradition79. It wasdesigned in tandem with Hajj2017.org, amedia portal providing journalists and thegeneral public with information, updates,news, live streams and infographics aboutthe event80.
Delivery methodAs with other digital themes, smarttourism initiatives, while led throughgovernment visions and objectives, arealso primarily implemented and deliveredthrough public-private partnerships. Theyinvolve a consortium of different partnersin order to deliver a seamless visitorexperience. For example the new DubaiPoints scheme is one of the largest-everpublic-private sector collaborations usingblockchain and smart contract technology.The initiative brings together government
entities (Dubai Future Foundation),telecom players (du), blockchain start-ups(Loyyal, DigitUs) and participating entitiesrelated to travel, hospitality and leisurelocations for points redemption andissuance (e.g. Jumeirah Group)81.
InvestmentWith GCC governments allocating multi-billion dollar budgets to major tourismdevelopment projects and events over thenext five years, spending on supportingICT infrastructure, major tourist eventsand digital smart tourism services is alsosignificant. For example the UAE hasallocated US$100 million for its Expo Liveinitiative, used to identify and fundtechnology-inspired solutions for globalissues to be showcased at Expo 2020 (e.g.mobility, sustainability)82. Not only wouldthis encourage domestic and internationalbusinesses to attend, it would also attractmany visiting spectators and technologyenthusiasts, similar to other majorinternational technology events such asthe Global Mobile World Congress orTechnology ‘Disrupt’ events.
StatusGCC governments have progressed insome smart tourism initiatives, while theyare still in their nascent stages on others.Most, for instance, already have matureaward-winning digital tourist guides inplace and are only working on incrementalenhancements with new technologies (e.g.AR, VR). The emergence of digital unifiedtravel passes are another major stepforward, as these initiatives are nowentering pilot and early implementationphases. For example the UAE’s SmartWallets and One Gate initiatives are nowbeing piloted in Dubai’s InternationalAirport, and reportedly mark a ‘stepping-stone’ towards the project’s wider aim toreduce and minimize travel clearing
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procedures83. On the other hand, eventplatforms, smart loyalty and incentiveprograms are initiatives seeking to elevatethe tourism experience to new frontiers.They are primarily still in the developmentphase, with the exception of Hajjplatforms, which were only launched this year.
Current challenges and needsIn developing and implementing smarttourism initiatives to enhance the touristexperience and attract higher visitorfigures, regional governments face anumber of challenges and needs:
• Digitally-savvy tourists with higherexpectations: the rise in digital touristservices (e.g. online bookings, ratingsand reviews) and the increasing trend inmillennial tourism has made the worldmuch smaller and has risen customerexpectations. Younger more digitally-savvy tourists now expect widelyadopted e-gates to work smoothly andhave less tolerance for waiting in queuesfor example, and need higher levels ofdigital engagement than traditionallyolder segments to enhance theirexperience and encourage spending.
• Integrating the tourism value chain:the tourism ecosystem is veryfragmented and competitive, consistingof many entities in aviation, travel,hospitality and leisure. Tourists are stillchallenged with coordinating amongstmany players to create their ownpersonalized experience. GCCgovernments can play a role in enablingbetter coordination and partnershipamongst players to help create a moresimplified and customized end-to-endtourist experience. For example,regulation could encourage players to
share customer data across a commonneutral industry platform, facilitatingpartnerships to serve mutual customersand digitally co-market to provide end-to-end offerings to attract tourists.Governments could be the custodians ofsuch data and contribute to enhancing itfurther by sharing customer journey andbehavior patterns in public spaces.
• Tourist engagement: most new digitalinitiatives are either in development,beta-stage or have been recently launched; they are yet to be proven bytheir end customers – tourists. Toensure these new services are optimizedand successful, governments mustembed mechanisms to engage touristsin a user-friendly and simple manner fortheir feedback. This also enablesgovernment to collect better informationregarding tourists’ user journeys andidentify new ways to enhance theirexperience.
• Seamless data security and privacy:as identity management becomes moredigital with e-passports, e-IDs,biometrics, new generations of smartgate systems, and more digital touch-points (e.g. public Wi-Fi hotspots), therisk of unauthorized tourist data access
and theft increases. Security regulationand solutions will have to be employedto ensure that tourist informationremains secure, but in a seamlessmanner so that it does not disrupt the tourist experience. Regulation is alsoneeded to define who may use whatdata, what purpose it can be used for,where it can be used and who isprotecting it.
OutlookMany of the GCC’s digital and smarttourism initiatives cover discrete parts ofthe tourist journey and are simple servicesin nature. New smart gates that facilitateswift immigration and unified travel passesserve as an example. Going forward, thenext stage in smart tourism is in co-creating customized and more meaningfulexperiences with tourists across as muchof the tourist journey as possible. Thiscustomization would best take placewhere there are touch-points with publicgovernment provided services. Significantcoordination and partnership between thepublic and private sector are required, asalluded to earlier, and new solutions willhave to consider an integrated, end-to-end hyper-customized experience.
The next stage in smart tourism is in co-creating customized and moremeaningful experiences with tourists,across as much of the tourist journey as possible.
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Smart tourism initiatives will drive demand for installed IoT devices, supporting 5-6G telecom & broadband services, servers, data centers, cloud services
Solutions for common platform integration and interoperability isdriven by the need to bring together many new and legacy tourism systems and services
Annual & upcoming mega-events driving need for event platforms to attract tourists, meet custom needs to maximize event goals (e.g. event spend, trade deals)
Big data from more connected tourists and the need to enhance experience is creating a new market for solutions to engage tourists and obtain tourist feedback
Largely a whitespace, the GCC is experimenting in blockchain based incentives. Integrated experience solutions will unlock new models to attract tourist spend and loyalty
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• Catalyst to growth in tourism, leisure, hospitality & ICT sectors for economic diversification
• Significant reduction in OPEX (e.g. airport security, immigration staff)
• GDP growth via more tourist spend• Boost foreign direct investment
• Cheaper, easier, faster services• New employment opportunities (e.g.
behavioral data scientists)• Enhanced tourist experience, satisfaction,
happiness• Attract growth in expat population• Improved country reputation
• Paperless tourist processes (e.g. paperless documentation renewals, auto-insurance)
• Reduced waste (e.g. on water and electricity usage from new more efficient, greener airports)
Top opportunities Key impacts
Figure 22: Top opportunities in Smart Tourism and key impacts
GCC governments such as the UAE’s DubaiFuture Foundation are exploring emergingtechnologies and new partnerships toprovide a more integrated experience84.Equally, they are also starting toparticipate in new initiatives led by theprivate sector. The Together initiative, forinstance, involves multiple governmententities (e.g. Dubai Customs, Dubai Police,Dubai Airports) exploring advancedtechnologies to improve DubaiInternational Airport’s passenger journey(e.g. automated check-in, baggage drop-off and tracking)85.
Ongoing GCC government investment onnew tourist attractions, events, digitalinfrastructure as well the next drivetowards providing the ideal touristexperience leave a range of newopportunities and whitespaces to fill.Telecom operators and ICT vendors willneed to expand their network andinfrastructure across new tourist sites andevents. Advanced technology vendors willoffer new solutions to streamline thetourist journey and collect data (e.g. walk-through security scanners vs. manualsecurity searches). SMEs can explore newG2B, B2B, G2G customer data hosting and
exchange platforms and augmentedpackage design solutions involvingtourists. Data analytics and real-timedigital marketing services will be neededto provide interactive on-the-spotcontextual suggestions to tourists (e.g.pop-up meal offers for hungry, pricesensitive tourists walking to their gate inan airport).
Deloitte | National Transformation in the Middle East | A Digital Journey
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Deloitte | National Transformation in the Middle East – A Digital Journey
Future of Mobility
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DefinitionThe Future of mobility makestransportation as much about bits andbytes as it currently is about the physicalinfrastructure people walk, bike, drive andride on. Existing and new advancedtechnologies improve mobility safety,efficiency and experience, resolving age-old transportation issues such ascongestion, capacity and sustainability.This includes86:
• Digital-age transportation: socialtransport, connected and driverlessvehicles, real-time traffic management,shared transport, online transportservices (e.g. smart parking, smart tolls,smart traffic lights, smart signs)
• Innovations in pricing, funding andpayments: dynamic pricing modelsbased on sensor data, unified travelpass, PPP transport models, incentive-based pricing (e.g. price per mile drivenvs. per gallon of gas to refuel)
• Rise of the alternatives: electricvehicles and bikes
• The airport re-imagined: swiftsecurity, civilian drones, augmented andself-service airports, mobile air travelapps (covered also in the Smart Tourismsection)
Key initiatives and expectedoutcomesGlobally, the GCC is one of the world’sfastest emerging transport markets, drivenby national plans to significantly expand itsinfrastructure, modes of transport andservices87.
Physically, transport infrastructure andnetworks across the GCC are undergoingmajor extensions and additions. New‘state-of-the-art’ projects include terminalsand airports (e.g. King Abdul AzizInternational in Jeddah, Kuwait CityInternational Airport), roads, bridges,waterways (e.g. Dubai canal), railways (e.g.GCC Rail) as well as tram and metrosystems (e.g. Doha, Riyadh, Kuwait City).This also includes new alternative modesof transport, notably the Abu Dhabi-DubaiHyperloop project and Dubai’s drone taxiproject; both world-firsts. Dubai’s electricvehicle and bike projects serve as anotherexample.
Digitally, GCC countries are alsotransforming their ever-expandingtransport networks through massdigitalization, high-speed connectivity, andintroduction of newer, smarter, moreintegrated services and managementsystems.
Proactive ‘digital-first’ transport strategiesare driving new digital initiatives towards aregional future of mobility.
Good examples include the UAE Road andTransport Authority (RTA) Smart TransportStrategy 2017-2021, Dubai AutonomousTransportation Strategy 2030 (ATS), AbuDhabi Transportation MobilityManagement Strategy 2030 (TMMS)88, 89,Smart Qatar Transportation Plan (part ofTASMU)90 and KSA’s Ministry of Municipaland Rural Affairs (MOMRA) recentlyannounced Smart Transport Systems (partof its smart cities program)91.
Key strategic goals and benefits include:
• Reduction in road traffic deaths: in Saudi Arabia at least 25 percentreduction by 202092, in Qatar 50-60percent by 202293, and in UAEelimination of road deaths. For exampleDubai Police target zero road deaths by2020)94 and the Dubai’s ATS also aims toreduce traffic accidents and losses by 12percent, worth around US$545 millionannually95.
• Increased network adoption andcapacity: for example UAE’s RTA aims toraise the share of public transport in themobility of people to 30 percent by203096.
• Reduced congestion and emissions:migration from fossil-fuel driven cars toelectric cars and greener and smarterpublic transport alternatives. Dubai’s ATSaims to reduce pollution by 12 percent,worth around US$400 million per year97.
• Revenue and cost benefits: such asreduced fuel subsidies and new e-ticketrevenue streams. Dubai’s ATS aims tocut transport costs by 44 percent, worthUS$245 million annually98. The SaudiMinistry of Transport aims via newincome streams to increase its self-funding from 5 percent currently to 20percent by 202099.
• Faster mobility: reduced commutertimes, saving millions of hours wasted inconventional transport (around 400million hours annually in Dubai100)
Future of Mobility
Deloitte | National Transformation in the Middle East | A Digital Journey
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• Economic diversification impact:increased private sector involvementand overall economic contribution of thetransport sector. Dubai’s ATS aims togenerate US$4.9 billion in annualreturns101.
• Multiplier effects: across other sectorssuch as tourism and real estate (e.g.fewer car parks for more efficient use ofprime real estate).
To realize these outcomes, GCCgovernments, especially the UAE andQatar, have introduced a range of newadvanced digital initiatives highlighted infigure 23.
Connected autonomous transportIncludes manned as well as unmannedconnected vehicles of all types (e.g. cars,trucks, boats, bikes, drones).
• Connected vehicles: usage of built-inIoT sensors and mobile machine-to-machine (M2M) communications toconnect all types of transport vehicles toeach other, central transport control,users, and other transport ecosystemplayers (e.g. insurance providers).
Qatar’s Safe Journey initiative introducesa range of new services to enhance carsafety and risk management. Forinstance, it’s Connected Vehicle (V2V)project enables vehicles to sense andshare perceived threats with othervehicles, based on telematics data102. It’sSmart Vehicle Monitoring service aims tomonitor driving, equipment andmaintenance patterns in cars, the dataof which can be leveraged to generatedemand forecasts for parts,maintenance services as well as informcar insurance schemes103. It’s MobilityGuardian service provides end-to-endvisibility for families to track dependents,a service that can also be used onschool and public transport buses104.
• Autonomous transport and services:all types of unmanned transport andvehicle-based public services, which areeither pre-programmed or controlledremotely. This can include individualmodes of unmanned transport such ascars, but also unmanned collectivetransport such as metros, trams andaerial vehicles.
This initiative is central to UAE’s futurestrategy. To this end, Dubai is targeting50 percent of private cars to have self-driving features within the next 10 years(by 2027), 12 percent of city trips to bedriverless by 2021 and 25 percent of alltrips to be driverless by 2030105,106.
Notable examples include the RTA andCareem joint Driverless Electric ModularPods project in the UAE. Electrically
powered, the pod is a new ‘door-to-door’mode of transport which picks-upresidents from different locations via theCareem app and connects to other podsheading in the same direction. Like ametro-interchange, residents can switchto other connected pods that will laterseparate and head to differentdestinations. The new solution isdesigned to significantly reduce trafficcongestion, where instead of having 80cars for 80 people, 10 pods can move 80 people107.
Other use cases include Dubai Police’sDriverless Mini Police Cars scheme,which, powered by robotics andbiometric recognition software, canpatrol different areas of Dubai to detectand track any unusual activity, objects,people, suspects and known criminals.The vehicles are accompanied with theirown assistant drones, both of which canbe controlled remotely by a policeofficer, via a link to the central commandroom108.
Connected Autonomous Transport
1Connected Transport Infrastructure
2Shared Transportation
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Government controlled transport and user-based mobility services based on the application of continuous streams of crowdsourced data from connected vehicles, traffic nodes and sensors installed across the physical transport infrastructure
Services such as ride-sharing, car-sharing, and bike-sharing to help urbanites get around without owning a car
Includes manned as well as unmanned connected vehicles of all types such as cars, trucks, boats, bikes, and drones
Figure 23: Key types of Future of Mobility digital initiatives
Dubai is targeting 25percent of all trips to bedriverless by 2030.
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RTAs Flying Taxi project is another notableuse case. The Volocopter is a minihelicopter powered by drone technologywith autopilot capability. Measuring twometers in height and seven meters inwidth, the flying taxi can seat two people,cruise at a speed of 50-100km/h, with a 30min flying time and 40 min battery chargetime. For passenger safety it comes withan emergency parachute in case ofmalfunction. The flying taxi service, theworld’s first, will eventually be madeavailable to the public, which can bebooked and tracked via a smartphoneapp. It is hoped this service will easetransport, for example, between high-risesand key destinations within the city109, 110.
Qatar’s planned AutonomousNeighbourhood Fleet project is a ‘door-to-door’ pick-up and drop-off service thatbridges the last mile of the transportationgap between public transport drop-offpoints (i.e. metro and bus stations) andfinal traveler destinations. These fleets willbe deployed as feeder transport systems,with their own special lanes allowingpassengers to reach metro and busstations more conveniently and safely111.
Connected transport infrastructureGovernment-controlled transport anduser-based mobility services are based onthe application of continuous streams ofcrowdsourced data from connectedvehicles, traffic nodes and sensorsinstalled across the physical transportinfrastructure. It is a fundamental initiativerequired for future mobility to be asuccessful reality and is especiallyimportant in the GCC, given rapidlyexpanding transport networks andadvanced new transport modes such asHyperloop. Use cases coming to light inthe region include:
• Central transport control networks:a single command center that centrallymonitors and controls all modes oftransport. Through centralized datagathering and analytics, such centerscan perform real-time and predictivetraffic management, faster emergencyresponse, and hazard prevention viaautomated enforcement of road safetystandards (e.g. controlling cars to remainwithin speed limits).
A good example of this is in Dubai,where RTA launched its new EnterpriseCommand Control Centre (EC3). EC3 is aunified mobility platform of platformslinking all city transport networks andtraffic control systems (e.g. Dubai Metro,Dubai Tram, Dubai Taxis and various RTAagencies), integrating even ride-sharingplatforms Uber and Careem. The centeraims to help ease traffic congestions,reduce transit time and cost, fend offtraffic accidents, and curb environmentalpollution by adopting smart planning inaddressing transport challenges of theemirate.
• Transport network-based services:user services such as journey planningbased on real-time location andcontextual information downloadedfrom the central transport network.
Qatar’s new Connected TransportNetwork service under its seamlessmobility initiative is an example of this.The service guides user journey planningand booking by recommending theoptimal transit package based on real-time transport network data and userpreferences (e.g. price, distance, time,preferred transport)112.
Shared transportationThese are services such as ride-sharing,car-sharing, and bike-sharing to helpurbanites get around without owning acar. GCC governments have jumped onthe bandwagon with taxi sharing servicessuch as Uber and Careem.
In the UAE, RTA signed an agreement withCareem to allow users to book an RTA taxi,track it and check details of their bookingsvia the Careem app113. Saudi Arabia’sPublic Investment Fund (PIF) also investedin the ride-sharing app Uber, encouragingits usage114. On the other hand in Qatar,government-owned taxi companyMowasalat has launched its own ride-sharing service Karwa, offering analternative to Uber and Careem in thecountry. In addition to the core taxiservice, users can also use it for othertransport services such as public buses,school buses and private hirecoaches115,116.
Delivery methodThe creative new mobility initiativeslaunching in the region have only beenmade possible through a number of PPPsand collaboration efforts between GCCgovernments, telecom operators, privatesector tech giants, SMEs and otherecosystem players. Under thesepartnerships, digital initiatives are each co-designed and implemented in a phasedmanner.
RTA in the UAE for example havepartnered with a number of private sectororganizations across the various initiativesand projects they are working on. Careemis a key partner for RTA, which has enabledRTA ride-sharing services on the Careemplatform as well as the new DriverlessElectric Modular Pods project. RTA hasalso partnered with German company
Deloitte | National Transformation in the Middle East | A Digital Journey
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Volocopter to bring its dream of flyingtaxis to life. Additional deals to bringalternative sustainable transport havebeen signed with Tesla for self-drivingelectric vehicles and with Hyperloop Oneas a new alternative mode of transport117.Qatar, Saudi Arabia and Kuwait have alsosigned major deals with transport and ICTdevelopers in pursuit of their smarttransport networks.
Interviews also reveal that cross-coordination between government entitiesand authorities is essential as these futureservices need to be properly regulated,field tested and carefully managed. Assuch, RTA has coordinated with Dubai CivilAviation Authority (DCAA) to define flyingtaxi regulations, governance and obtainapproval for the usage of the new serviceairspace in Dubai. Similarly, RTA has joinedforces with Dubai Silicon Oasis Authority(DSOA) to allocate and launch dedicatedtransport routes in the DSOA park to pilotand test new autonomous vehicles in thefield. In addition, DSOA will contributetowards autonomous mobility R&D118.
Equally, involving various ecosystemplayers in the Digital Transformationjourney is also key. The Dubai WorldAutonomous Transportation Challenge forinstance, launched by the Dubai FutureFoundation, reaches out to the broaderinternational community of vehiclemanufacturers, SMEs and R&D centers,inviting them to compete and worktowards innovative solutions for ‘last-mile’transportation from metro stations as wellas autonomous neighbourhood buses119.
InvestmentWhile total figures on future of mobilitybudgets remain undisclosed, it is clearthat significant planning and investmentsin new mobility infrastructure, solutionsand services have been made. Forexample, the UAE invested over US$91million to build Dubai’s new EC3 mobilitycenter. Saudi Arabia has reportedlyearmarked US$140 billion on mobility
optimization over the next ten years, thelargest share of which is reported to be on traffic management and publictransport120. In addition to the multi-billiondollar new transport construction projectsin Saudi Arabia, the PIF invested US$3.5billion in the taxi-sharing service, Uber, last year121, and government-ownedincumbent Saudi Telecom purchased a 10 percent stake in Careem.
StatusGCC governments have made goodprogress on the future of mobilityinitiatives they have embarked on. Whiledreams of autonomous mobility mayseem ambitious and distant, in some waysit is already here. For example UAE hasbeen operating a driverless metro systemsince 2009, and has recentlycomplemented that with a new tramsystem122. Qatar, Saudi Arabia and Kuwaithave all also made significant progress indeveloping similar new smart transportinfrastructure and networks. GCCcountries have also seen the rise andquick adoption of shared transportation,which are being harnessed bygovernments in different ways.
However, the UAE, and Dubai in particular,has established itself as a clear leader inthis space, with the most definedautonomous transport strategy and planin place, having signed agreements with arange of organizations for multipleprojects. Many of these are alreadyprototyped and are being piloted. Dubai,for example, was the first city in the worldto successfully field test a new flying taxiservice. It is followed closely by Qatar,aiming to release its own range of future
mobility services in 2018. Saudi Arabia andKuwait, dealing with much larger scaleexpansions in their transport networks arefollowing a more steady and gradual path.
However, even with such progress, wide-scale connected autonomous transportdeployments should not be expectedbefore 2020. Many of the new initiatives(with the exception of sharedtransportation which is well establishedacross the GCC) are still in theirexperimental stages, and will requireadequate time to be rigorously testedbefore being accepted as ‘proven’ and fitfor public use. In addition, major aspectsof the future of mobility, namelyinnovations in pricing, funding andpayments are yet to be conceptualizedand implemented to develop a realecosystem around connectedautonomous transport. Some progresshas been made on this, but much moreremains to be done to effect the DigitalTransformation of the transport sector.
Challenges and needsIn developing and implementing futuremobility initiatives, GCC governments alsoneed to tackle a number of challenges andneeds:
• Supporting policies, regulations,standards: public policies need to bedefined to support new solutions, andtheir adoption with regulations andstandards need to be defined to governthem (e.g. safety regulations fordriverless cars and drones,communication and data interoperabilitystandards for connected vehicles).
Saudi Arabia hasreportedly earmarkedUS$140 billion onmobility optimization overthe next ten years.
Dubai for example wasthe first city in the worldto successfully field test anew flying taxi service.
Deloitte | National Transformation in the Middle East | A Digital Journey
45
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Mobility initiatives will drive demand for installed IoT devices, supporting 5-6G telecom & broadband services, servers, data centers, cloud services
Solutions for common platform integration and interoperability isdriven by the need to bring together many new and legacy transport systems and services
Mobility initiatives are generating huge demand for connected autonomous vehicles (e.g. Dubai targets 25 percent of all mobility to be driverless, including flying taxis)
Driven by connected mobility network. Big data and AI analytics enable real-time, cognitive decision support for citizens, authorities, providers
Currently a whitespace in the GCC, it will surge in demand as migration towards autonomous transport gathers pace (e.g. price models on vehicle-telematics data)
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• Productivity: Dubai to recover approximately 400 million lost travel hours
• Revenues: Dubai to generate US$4.9 billion in annual returns
• Reduced transport OPEX & CAPEX (e.g. bus drivers, call centers)
• Catalyst of growth in ICT and transportsectors
• Cheaper, easier, faster mobility: approx. 70 percent cost reduction per mile
• New employment opportunities (e.g. mobility control managers)
• Reduced road deaths: globally 1.24 million lives saved annually
• Citizen satisfaction, happiness
• Greater use of viable alternatives (e.g. Hyperloop, electric vehicles, clean public transport)
• Emissions: 40 to 90 percent decrease from automobiles
• Paperless mobility processes (e.g. vehicle documentation renewals, auto-insurance)
Top opportunities Key impacts
Figure 24: Top opportunities in Future of Mobility and key impacts
Source: “Future of Mobility” report, Deloitte University Press, 2016
• Integration and consolidation:manyservices have migrated to smart e-government and m-governmentplatforms. However there are more than170 transport services in UAE, whichneed to be further consolidated.
• Public safety and security: from aphysical perspective, the public stillneeds to be convinced over thereliability and travel-worthiness ofautonomous vehicles and from a digitalperspective, transport network data andcontrol over all vehicles within thatnetwork need to be strongly protected.
• Coordination: integrated mobilitysolutions require close and consistentcoordination across the transportnetwork and ecosystem. Bothgovernment entities and private sectoragencies need to focus on broadcoordinated development,implementation, operations andmaintenance, which could take time.
• Car-centric usage: higher incomes andlower fuel prices compared to othercountries enables people to afford theirown cars for transport. Coupled with thefact that current public transportnetworks are not developed to the lastmile, private cars remain the primarymode of transport. This could generateinertia in the adoption of new public‘smart’ transport networks and services,which stood at only 13 percent in2013123.
• Tight timescale and delays:manynew ‘smart’ public transport projects(e.g. airports, metros, railways) are beingdeveloped from scratch within very shorttimelines to meet GCC envisionedambitions. Transport developers cite thisas a key challenge as such ‘state-of-the-art’ projects are large-scale and complex,require thorough testing and aresensitive to delays without fullgovernment support and financing inplace124. A number of projects acrossGCC states have been delayed for
various reasons already, which couldpush-back future mobilityadvancements.
OutlookThe GCC auto market will expandsignificantly to the extent that by 2021,more stringent regulations and standardscould drive auto-makers to manufacturenearly 3 million cars in the region. Thiscreates an opportunity for GCCgovernments to establish a new home-grown industry and ecosystem aroundconnected autonomous vehicles125. Thefigure below depicts the potentialopportunities a new autonomoustransport network could provide,illustrating business transformations inadjacent industries that could emanatefrom this. With the great progress alreadymade by the GCC and pathway ofopportunities ahead, what is clear is thatthe governments in this region have onlybegun to scratch the surface.
Deloitte | National Transformation in the Middle East | A Digital Journey
Smart Government
47
DefinitionSmart government refers to the use ofintegrated information andcommunication technologies ingovernment policies, services andprocesses to enhance customerexperience and satisfaction, developefficient and cost-effective ways of doingbusiness and improve policy making.
Smart government programsimplemented globally have deliveredsignificant and tangible benefits to theireconomies. Digitizing more than 1,100services has saved the state of UtahUS$500 million annually126. It alsoconverted 99 percent of public services inEstonia to e-services, saving 800 years ofworking time127. The government of Dubaihas also saved approximately US$1.17billion over the past twelve years through
its development of smart services128.Similar initiatives adopted by the rest ofthe GCC reveal better business outcomesand subsequent cost saving opportunities.
Key initiatives and expectedoutcomesThis paper chose three initiatives that arethe most prevalent as part of GCCplanning towards smarter governments:
Customer-centric one-stop-shopplatformsGovernments are making strides in theirtechnology choices to simplify processesfor citizens. Across the GCC, Public Sectorentities have emphasized thedevelopment of mobile applications as ameans of conducting government servicesat any point in time. For instance, mobilephones are the most used device by
individuals across all electronics.Governments, across a wide range ofsectors (i.e., transport, communication,security, health, education, social affairs)are developing mobile applications toprovide on-the-go services with enhanceduser experiences.
Mobile apps provide individuals with easyaccess to information, the ability tocommunicate with relevant personnelfrom government entities, receive advancenotifications, complete their governmentlinked transactions and more. Likewise,these apps allow government officials tokeep track of activity, increase efficiency inprocessing transactions and foster real-time public engagement.
Customer-centric one-stop-shop platforms
1Government collaboration
2Data analytics
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Implementing new data standards around sharing, hosting and governance; federal entities enable collaboration effectiveness across public services
Processing and analysis of information to allow for enhanced decision and policymaking through predictive analytics
Integrating service delivery by leveraging ICT across various entities for a seamless customer journey
Figure 25: Key types of Smart Government digital initiatives
Smart Government
Deloitte | National Transformation in the Middle East | A Digital Journey
After enabling m-services, governmentsare collaborating together and in somecases, with private sector entities, tocreate fully integrated platforms. Thesesmart apps or e-government services actas a one-stop-shop for all day-to-daycustomer services, such as payments, top-ups, location finders and informationdirectories.
Platforms such as Dubai Now haveemerged, allowing citizens in Dubai toaccess various government services in onesingle location. The app integrates morethan fifty services such as payment fortraffic violations, utility bills, top-upoptions, charity donation and visaapplication tracking129.
Delivering on its customer-centricapproach and happiness metric, Dubai’ssmart e-service center is driven by IBMWatson artificial intelligence and a robotthat provides more than 100 servicesensuring only one time visits. Someservices include ID renewal, marriagecertificates and birth certificates130.
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Provides users with a list of attractions, hotels, restaurants and interactive maps; options to book taxis, hotels and flights are available in 10 languages
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Water Corporation
Allows users to view and pay bills, access lists of services, track the status of services demanded, locate service centers and send suggestions & complaints
KKuuwwaaiitt FFeessttiivvaallss Ministry of InformationAllows users to view all events and festivals; it provides relevant details and manages a personal calendar of interested events
Figure 26: GCC mobile Smart Government applications
Source: Deloitte research and analysis, GCC government websites
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Figure 27: Dubai Now mobile application
Source: Deloitte research and analysis, Dubai government websites
Deloitte | National Transformation in the Middle East | A Digital Journey
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Qatar’s Hukoomi is another step in thisdirection. Customers will be able tocomplete more than 650 governmentrelated transactions from their mobilephones131.
Government collaboration The evolving use, storage and sharing ofdata along with its regulatory standards ispicking up as a major enabler forgovernment collaboration. Although GCCcountries are still maturing in this initiativewith their current ranking all below the50th position in the Open DataBarometer132, there is a strong emphasison the importance of transparencybetween governments and citizens topromote development. This transparencycontributes to the provision of publicservice, ease of doing business for SMEs,start-ups and other enterprises as theavailability of public data and informationallows for more innovation and growthwhile reducing challenges.
Aiming to achieve smarter practices,Dubai’s Open Data platform addressesthis development by sharing allgovernment-related, non-confidential data and information with the public133.Similarly, Qatar has established Open Datapolicies giving entities a framework andapproach for releasing different types ofdata. Moreover, the UAE Federal Network(FN), a G2G network is now available for
information sharing services across allfederal entities through smart cloudingsolutions134.
From a regulatory standpoint, the UAE’sTRA has undertaken work to reviewexisting data legislations, update theguidelines and conduct an outreachprogram in order to adopt data standardsfor seamless data integration andanalytics. Regional data hubs are the wayin which future governments wouldleverage data integration. In that context,the UN recently designated Dubai as thelocal data hub for the MENA and SouthAsia regions. On one hand, this solidifiesDubai’s positioning and vision ongovernment data collaboration, while onthe other, brings GCC into the foreplay ofdata governance135.
Data analyticsWith data sharing becoming morecommon, the use of data analytics to trackpatterns, predict outcomes and adapt tochanging conditions is becoming morecritical in the GCC. Data analytics willenable better and faster decision makingamongst government entities as well asadhere to the requirements of citizens.While still popularizing across the region,the UAE has already made plans to adoptthese technologies.
Dubai just launched the Dubai PulsePlatform initiative in an effort to switch tosmarter technologies in the Public Sectorspace. This central platform will aim tohouse government data and will beavailable to all relevant governmentofficials allowing them to aggregate,process and analyze information to makemore informed decisions, enhanceoperational efficiency and lower dataaccess costs136.
Delivery methodIntegrated delivery is a result of efficientand effective collaboration between allentities – public (federal and local), semi-government, private and non-profitsectors. Across all entities there remains ahigh demand for IT programmers as wellas web and app developers. Governmentorganizations are able to better integratedata through this collaboration to leverageintegration into a seamless servicedelivery.
Dedicated programs are also a means forenhancing e-government services andinitiatives. For example, KSA recognizedthe essential role of e-government andconsequently created Yesser, thedesignation program governing theimplementation of e-governmentinitiatives in the Kingdom137. Similarly,Dubai is allocating Area 2071 as a miniSilicon Valley to empower start-ups,venture capitals and other digitalenterprises that contribute to the digitalsector in the UAE.
InvestmentInvesting in digital innovation to establishsmart governments can reap great returnsfor the country, as seen in best practiceexamples. Predictions estimate that if theUAE government and businesses alikeoptimize their digital skills, technologiesand accelerators, its GDP would increaseby US$13.8 billion by 2020, 3 percent ofGDP. Saudi Arabia could add more thanUS$31 billion (4.1 percent of GDP138) andQatar US$7.8 billion (3.6 percent of GDP)by 2020, through these investments139.
Dubai’s smart e-servicecenter is driven by IBMWatson artificialintelligence and a robotthat provides more than100 services ensuringonly one time visits.
Deloitte | National Transformation in the Middle East | A Digital Journey
StatusAccording to the UN E-GovernmentIndex140 – an index assessing a country’se-government development based on theadequacy of its ICT infrastructure, the UAE,KSA, Qatar and Kuwait all rank in the top50 in terms of education and adaptabilityto ICT. While the ranks have varied overthe years, efforts are being made in linewith government visions to ensuresmarter governments.
Kuwait improved its e-government rankingdrastically by increasing nine ranks. Qatar,although downgraded by four, is moving inthe right direction. MOTC’s establishmentof TASMU, which encompasses over 80digital initiatives, aims to launch in 2018,picking up the pace of digital in thecountry.
KSA has risen rapidly in the rankings overthe years and despite its fallen rank overthe past two years, the country is currentlymaking great efforts in enhancing its ICTinfrastructure and digital ecosystem in linewith Vision 2030.
Dubai, ranking the highest at 29, has madeplans to become the smartest city in theworld by 2021. Its platform, ‘Dubai Now’was named the Best Mobile GovernmentService in the UAE at the WorldGovernment Summit in 2016141.
Current challenges and needsDigital talent is a global challenge that isalso prevalent in the UAE. Expertise in appdevelopment, software development,digital manufacturing and other relatedservices is required for markets to keep upwith the pace of global transformation.This expertise is especially crucial for in-house initiatives. Entities need skilledemployees to manage, maintain andtroubleshoot these digital applicationsregularly.
Stronger promotional efforts, especiallyamong older generations, are crucial toincrease awareness and assure individualsthat online transactions are more efficient,safe, up-to-date and reliable.
Data ownership and data sharing are alsochallenges in the GCC, specifically forintegrated information. The large numberof entities participating in integratedinformation and service deliverycontributes to issues of bureaucracy andin some cases, reduces stakeholderinterest in taking ownership andresponsibility.
50
2014 2016
3366
4444
2014 2016
4400
4499
2014 2016
44884444
UN e-government Index ranking
2014 2016
3366 2299
Figure 28: GCC ranking in the e-government Index
Source: “e-Government Survey” 2014 and 2016 reports, United Nations
2010 2012 2014 2008
36
44
70
41
58
90
80
2016 2005 2003 2004
105
Figure 29: KSA e-government rankings (2003–2016)
Note: after 2005 e-government survey was next done from 2008 on a bi-annual basisSource: “e-Government Survey” 2014 and 2016 reports, United Nations
Deloitte | National Transformation in the Middle East | A Digital Journey
Entities are reluctant to share their dataspecifically when it relates to a project oran initiative that they are not takingownership of.
The security and privacy of content plays amajor role in the ability of governments toimplement these programs. Governmentsmust ensure the highest level ofsophistication in digital security to securedata, personal credentials and otherconfidential information input into theirsystems.
Finally, government regulation is a keyconcern in fully digitalizing and adoptingemerging technologies as part of an e-government. Legislation must be clear andeffective covering all types of e-transactions and functionalities, while alsoensuring that it does not limit theadoption of new technologies, such asdrones.
OutlookGCC countries are aiming to achieve amodel similar to more advanced smartgovernment implementations like Estonia,where all government services are madeavailable online and can be completedwithin minutes. GCC governments aretesting digital and exponentialtechnologies to encourage effortless,quick and paperless integratedtransactions.
Moving forward, the focus and interest indata warehouses, cloud platforms,enhanced data, cyber security, smartdevices and applications, blockchain,robotics and big data analytics are a fewareas of high impact and certainty when itcomes to ICT investment. These will play acritical role in enabling governments todeliver on the smart government promise.
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Smart government initiatives will drive demand for installed IoT devices, support 5G telecom investments, broadband services, data centers & cloud services
Solutions for common platform integration and interoperability isdriven by need to bring together many new and legacy systems across many government entities
Smart government initiatives are generating huge data volumes, creating a massive new market for data storage, sharing and analytics services
Need for large–scale operational efficiency across many government entities and services will require AI based Robotic Process Automation (e.g. Chatbots in service centers)
Migration to Digital Government & e-Services creates more access point vulnerabilities for hackers, which needs to be countered with stronger cyber security services
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• Increased productivity and output• Significant reduction in OPEX of public
services (e.g. staff)• Reduced CAPEX for physical assets (e.g. call
centers)• Catalyst to growth in ICT sector
• Cheaper, easier and faster access to government services
• New employment opportunities (e.g. high value robot managers)
• Greater transparency and trust• Citizen satisfaction, happiness
• Paperless documentation• Reduced wastage via more efficient
government processes (e.g. time, utilities, supplies)
• Reduced carbon footprint (e.g. minimizing need to visit government offices)
Top opportunities Key impacts
51
Figure 30: Top opportunities in Smart Government and key impacts
GCC countries are aimingto achieve a model similarto more advanced smartgovernmentimplementations likeEstonia, where allgovernment services aremade available onlineand can be completedwithin minutes.
Deloitte | National Transformation in the Middle East | A Digital Journey
Smart Cities
53
DefinitionAs the world is becoming far moreurbanized, and mega cities withpopulations greater than ten to twentymillion people are emerging, there is agreater need for large-scale operationsand management for cities to effectivelyserve its inhabitants. As societies arebecoming more connected through digitaland mobile, they are also becoming muchbusier. With this comes an increasingnumber of demands and challenges to bemet in an ever-more dense and active citylife. These conditions make ‘Smart City’living the next necessary evolution in theway of life.
Smart cities are cities that use smarttechnologies, data analysis and innovationto improve the quality of life, efficiency ofurban operations, services andcompetitiveness, while ensuring the citymeets the needs of present and futuregenerations with respect to economic,social, environmental and cultural aspects.
For a city to be ‘Smart’ it needs to bedigitally connected and integrated acrossthe key domains of society. Offering thepeople, businesses and governments aseamless and outcome driven experienceacross key levers of economy, mobility,security, education, environment andliving.
Digital and exponential technologiesranging from AI integrated sensors,robotics, big data analytics and IoT are just
some of the innovations enablinggovernments to implement new smart cityprograms. The demographic changecomponent is a key driver in smart citydevelopments as also seen in the GCCwhere the cities are being shaped by theyouth who are growing up in such anintegrated society.
Key initiatives and expectedoutcomesIn line with other developed countriesacross the world, the GCC is alsoleveraging digital technologies toaccelerate the development andimplementation of smart city solutions toenhance their current and future urbandevelopment.
Smart Cities
Figure 31: Deloitte Smart Cities framework
Deloitte | National Transformation in the Middle East | A Digital Journey
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As such, GCC governments haveintroduced various digital initiatives alongthe six smart city pillars: economy,mobility, security, environment, educationand living.
EconomyThe economy pillar represents theprosperity and wealth of a city and itsresidents. Cities with a ‘smart economy’have an edge to prosper via easier ways ofdoing business, finding work (meeting theneeds of a borderless workforce), andgaining access to financial opportunities,all empowered through ICT. For instance,robotics automating governmentprocedures (e.g. permitting and licensing).Digitization and big data analytics improve
city regulators’ ability to track economicperformance and outcomes.
The economy pillar is arguably the mostsignificant dimension as GCC countriesadopt technologies that optimize internalprocesses and develop new industries.Dubai, for example, has made a smarteconomy initiative to implementblockchain technology to save andredistribute 25.1 million hours ofeconomic productivity. In the KSA, MOMRAhas announced its plan to implement tensmart cities across the country.Operations in such cities would includeimproving efficiency on city management,attracting local and foreign investment aswell as creating job opportunities.
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• Smart meters• Smart building systems• Heating and ventilation• Access control systems•Green buildings• Smart homes & appliances• e-health•m-health•Medical equipment• Hospital equipment• Insurance company
• Intelligent transport systems• Advanced traffic management• Fleet management• Connected cars• Electronic road pricing
Cloud Big Data
Smart Phone/card
Social Media
IOT Next Gen Security
Cognitive Systems
Robotics Virtual Reality
3D Printing
Sensors EnergyEfficiency
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• Efficient power distribution• Virtual power plants• Distributed generation• Smart substations• Leakage detection sensors• Predictive analytic flood warnings• Data driven waste collection• Recycling• RFID based waste collection• Command center
• Advanced video analytic systems• CCTV surveillance• Smart IT security• Anti fraud systems
• Adaptive learning• e-classrooms•Open online courses• Digital infrastructure and educational material
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Figure 32: Smart Cities ecosystem and stakeholder map
Source: Deloitte research and analysis, MI analysis, Technavio
Dubai has made a smarteconomy initiative toimplement blockchaintechnology to save andredistribute 25.1 millionhours of economicproductivity.
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MobilityMobility, as alluded to in the Future ofMobility section, represents both thephysical and digital infrastructure thatsupports services and help people andgoods move more safely, cheaply, quickly,cleanly and happily. A smart city with trueadvanced mobility is equipped with digital-age transport (e.g. autonomous vehiclesand drones), applies innovations inmobility service pricing, funding andpayments (e.g. sensor-driven dynamicpricing models), uses alternativesustainable modes of transport (e.g.electric vehicles) and re-imaginedinfrastructure (e.g. airports).
GCC countries have some of the mostrapidly advancing transport systems in the world, and in many ways are leadingnew mobility innovations. Key digitalinitiatives in the GCC include connectedautonomous transport, connectedinfrastructure as well as sharedtransportation. Notable examples includeDubai’s recently tested flying taxi projectand its integrated transport control center(EC3)142. For a detailed review of mobilityand examples see the “Future of Mobility”theme.
SecuritySecurity is paramount for any city before itcan thrive. Over time, ICT has played anincreasingly central role in security, bothphysically and digitally. Physically,technologies such as security drones,facial-recognition and predictive analyticsare applied to ensure a city and itsinhabitants are protected from anyphysical breach or harm (e.g. preventionof street crimes). Digitally, cyber securitytechnologies are equally critical to ensurethe protection of sensitive data relating tobusiness, people and operations within
the city (e.g. prevention of identity theft,digital financial theft). Secure dataplatforms, clear governance and smartaccess protocols ensure that data issafeguarded against cyber threats. Bigdata and predictive analytics are helpingsecurity agencies to proactively controlcrime rates.
This domain is arguably top of the agendafor the GCC countries as they haveintroduced a number of digital initiativesto develop smarter, tougher and strongernational and city level security to fight and prevent crime at home and on theirborders. Examples of initiatives includeMOMRA’s plan to implement smart-streetlighting systems which not only reducepower consumption but also enhancesecurity by increasing light brightnesswhen movement is detected. In Dubai, thepolice recently deployed a smart controllerdevice that can assist officers from trafficdepartments to maintain safety on theroads, improve electronic roadsurveillance and capture serious violations by drivers.
Education Education, which was outlined in theClassroom of the Future theme, is thelearning and application of ICT totransform one’s way of learning.Technology solutions such as virtuallearning, digitization, and AR transform theway individuals learn. Unbundled,personalized, and blended education canbe more accessible thanks to rich dataand analytics, which helps shift the focusof education from digital content in theclassroom, to real-world experientiallearning. In a smart city context the smartconnectivity of digital education platformsin government service offerings delivers aseamless citizen experience.
GCC governments are attempting toincorporate smart technologies specificallyin the education sector. Digital initiativesbroadly fall into the following categories:smart education systems (based on digitaldevices rather than textbooks), onlineplatforms (self-taught, flexible andaccessible learning via online courses) anddigital literacy (ICT content focus in schoolcurricula).
EnvironmentEnvironment represents the naturalecosystem and surroundings of a city’sinhabitants, encompassing componentssuch as vegetation, air quality, climate andlivestock. Cities today are notorious forbeing a source of pollution, ultimatelycausing environmental damage andclimate change. Smart cities, however, aimto shift the paradigm from harming tosupporting by applying new technologiesto preserve, protect and even to enhancethe environment. This could includesensors that detect leakage of preservednatural resources, such as water, orresponsive devices (e.g. washingmachines) that temporarily stopconsuming energy when demand forenergy (and prices) increase.
As concerns about sustainability andenergy conservation arise across theworld, GCC governments are takingserious measures to ensure more efficientpractices are being exercised through theuse of new technologies. These comefrom sensory and monitoring tools,including resource saving systems andoffer more reliable and efficient services.Furthermore, such technologies areprioritized to achieve lower pollution, gasemission and cleaner resources to ensuresustainable and productive lives.
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With plans to become the smartest city inthe world, Dubai, is working on connectingall of its resources and infrastructure.Water, energy, drainage, waste distributionnetworks, buildings and traffic lights will beconnected and monitored to providemore reliable and efficient services. Thisnetwork of connectivity allows for easierdetection of outages, leaks andconsumption levels.
Furthermore, the Dubai Electricity & WaterAuthority (DEWA) is the region’s smartutility pioneer. It is focused on upgradingits infrastructure and is planning toimplement smart grids which will includehigh-tech energy efficient resources,thirteen photovoltaic solar power facilitiesand a planned investment of 250,000smart meters by 2021. The city aims toease residents’ lives by providing 90percent of day-to-day requirementsthrough digital services143.
LivingLiving encompasses the sustainablehealth and quality of life of each person.Smart cities apply ICT technologies toimprove the lives of its inhabitants toachieve greater citizen happiness andsocial cohesiveness. Applications of smartliving include connected communitiesthrough smart buildings, health careinnovation and the use of data to monitorand enhance social programs, all of whichcontribute to improved health, quality oflife and sustainability.
Alongside its interest in sustainability,increasing attention is being directed bythe GCC in the form of smart homes.Smart home and smart building solutionsare becoming increasingly prevalent in theGCC and consist of sensory technologiesthat automate systems. Such technologiescan automate televisions, lighting, airconditioning and even grocery lists in
order to ease the day-to-day processes forhome owners, all while minimizing energyconsumption and inefficient energypractices. Smart homes also havecapabilities that allow residents to monitorthe environment inside and outside theirhomes remotely, and provide sensors that activate alerts based on changes intemperature, leaks, movements andmotions.
Telecom service providers including duand Etisalat are already making way forsmart homes integrated offerings throughconnectivity, networking, managedservices and automation as well as amobile apps that connect to devices,equipment and kitchen appliances144.
Delivery methodSmart city developments are large scaleprojects with a complex ecosystem and animpact on multiple economic sectors. Todeploy a smart city, an ecosystem oftechnologies, service providers andoperators must be in place to enablethese programs. Operating as anintegrated city plan of smart programs iscritical in order to deliver smart cityoutcomes.
To ensure these components are providedeffectively, GCC governments areproactively seeking partnerships with ICTexperts across developers, suppliers andservice providers to help deliver efficientinfrastructure. For example, the RoyalCommission of Jubail and Yanbu (KSA)have started a strategic partnership withtechnology providers to implement asmart city. They have signed a milestoneagreement with Huawei to establish atraining academy and a smart cityinnovation center in the Yanbu region toanalyze and collect data which will allowdevelopers, students, and academics tobenefit through open data technology.
The development of integrated smart cityprojects in the region such as Dubai’sDesign District, Dubai Silicon Park, Qatar’sLusail City development project, andYanbu City also encourage enhanceddigital integration across sectors. Suchdevelopments also aim to developintelligent green solutions, improveprocess and operational efficiency andleverage ICT capabilities to contribute tooverall growth.
The Royal Commission ofJubail and Yanbu havesigned a milestoneagreement with Huaweito establish a trainingacademy and a smart cityinnovation center in theYanbu region to analyzeand collect data which willallow developers,students, and academicsto benefit through opendata technology.
Deloitte | National Transformation in the Middle East | A Digital Journey
InvestmentAs outlined above, GCC countries arefocusing on investments in upgradednetwork infrastructure, ambitious smartcity projects and complementary digitalinitiatives. The UAE’s telecom provider,Etisalat, plans to invest more than US$820million in 2017 to develop infrastructureand to expand its mobile and fiber-opticnetworks to improve coverage across thecountry as well as prepare the network for5G145. Another example includes the DubaiSilicon Park project, valued at US$350million which will be built in Dubai SiliconOasis and aims to create intelligentsolutions across the smart city146.
In an attempt to move away from an oil-based economy, KSA is also investing insmart city projects that aim to create aknowledge-based economy. It is expectedto invest US$70 billion toward smart cities,with a vision to generate a US$150 billion
contribution to GDP (20 percent of GDP)and create over one million jobs by2020147.
Furthermore, Qatar’s Lusail Citydevelopment project, which will build afully integrated smart city from scratch hasa total investment of US$45 billion.
StatusDubai and Abu Dhabi rank the highest outof Middle Eastern countries (66th and64th respectively) in the world smart cityrankings, according to the IESE Cities inMotion Index 2017 – an index thatanalyzes all aspects that make up thesustainability and quality of life in 180 keycities148. The UAE is moving fast withinitiatives such as smart school buses, inwhich it aims to cover all 383 public schoolbuses in Dubai149. Its smart home marketis expected to grow at a 14.8 percentCAGR between 2016 and 2022150.
While Riyadh and Jeddah rank lower(123rd and 115th respectively), these citiesare making improvements and prioritizinginitiatives as a part of the Saudi NTP.
Doha currently ranks 117, but hasambitious plans to create a smart city(Msheireb Downtown) which will equate tothe largest project in Qatar dedicated tofuture innovative developments. Thesmart city will aim to have one principlecontrol center, 500,000 sensors, 33services and 2 data centers.
Current challenges and needsThe first group of challenges are related toa smart city strategy. It is paramount tounderstand for each specific city whatservices can be smart according to itsambitions and constraints. There arevarious cases of cities with a few so-calledsmart services only to justify receiving thesmart city title. Moreover, a smart city boils
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ICT Infrastructure
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platform
Network architecture – backhaul, backbone, mobile and fixed access
Datacenter infrastructure (Cloud distributed infrastructure)
Passive network infrastructure
Videos Sensors Wi-Fi APMobile Devices Wi-Fi AP
Figure 33: Smart multi-layered ecosystem
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down to collaboration between all partiesthat comprise a society, meaning anengaged citizen is required to transform acity into a smart city by engaging withPublic Sector entities using smart services.Digital inclusion also comes intoconsideration in determining which part of society will benefit from smart services.A government strategy also needs toaddress this issue to cater to the largerpopulation.
Creating a safe and reliable smart city isalso replete with challenges related totechnological matters such as informationsecurity, privacy, and seamlessconnectivity across all aspects of the smartcity ecosystem. A major concern whenimplementing smart city initiatives is todevelop an ICT master plan that willenable smart service deployment. When itcomes to GCC ICT development levels,ITU’s 2016 index (analyzing 175 countries)positioned the UAE and KSA at the 38thand 45th rank, meaning these countriesare investing, but there is space toimprove. Specifically, the KSA’s scale in sizecompared to rest of the GCC adds acomplexity to the challenge to speed upICT development due the sheer cost ofexpanding the country’s optical backbone.
OutlookEmerging technologies will play a relevantrole in Digital Transformation, and henceon Smart cities. Take 5G network mobilityas an example, forecasted to be ready byQ2 2018. 5G will be a flexible technologythat smart cities will rely on forconnectivity, dealing with very high datathroughput, massive connections withvery low throughput (IoT, for example), andultra-reliable, low latency communication(critical public services).
Looking forward, smart city investment ispositioned to grow in most of the GCCwith an increased focus in KSA and UAE.Smart building and smart transportationprograms are leading the way with CAGRsestimated at 10 percent and 9 percentrespectively by 2020151.
By 2018, there will already be a few smartcity projects that will have launched in theGCC. One of the most audacious projectswill take place in Jeddah, valued at US$1.2billion, and estimated to be completed by2020.
Such initiatives generate a positive outlookfor the overall sector and for ICT players inspecific. Innovative technologies such as5G, IoT, AI, blockchain and VR will serve askey enablers to many of these regionalprograms.
The first group ofchallenges are related to a smart city strategy. It is paramount tounderstand for eachspecific city what servicescan be smart according to its ambitions andconstraints. There arevarious cases of citieswith a few so- calledsmart services only tojustify receiving the smartcity title.
Looking forward, smart city investmentis positioned to grow in most of the GCC with an increased focus in KSA and UAE. Smart building and smarttransportation programs are leadingthe way with CAGRs estimated at 10percent and 9 percent respectively by2020.
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Use iBeacon technologies to integrate systems in the city to enable better living, environment, economy, security, mobility and education
Use of smart metering, high-tech sensors, integrated data centers, etc. to enable digital in city master planning and ensure environmentally sustainable civil structures
Develop an ecosystem that is required to build smart cities. Leverage platform of platforms solutions to enable city dashboards for authorities to ensure better communication
Analytics used to tap into big data for each sector and develop integrated city management systems e.g., crime, security. Generate recommendations for future security using AI
Use of cyber and cloud security as a means of securing information to mitigate fraud, cyber attacks, leakages, etc. as well as implementing Blockchain solutions as a secure means of ledger
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• Data-driven policymaking resulting in favorable environments for businesses and citizens i.e., supporting governments in predicting factors of natural disasters
• Digital government services results in better savings for governments such as Dubai (US$1.17 billion savings) and paperless transactions
• Implementation of Blockchain technologies can result in 25.1mn hours of productivity redistributed and saved in Dubai
• 50-60% reduction in travel deaths by 2022 in Qatar by applying technologies such as autonomous cars
• Efficient waste collection using sensors in waste containers
• Lower congestion and pollution levels through optimal use of transportation infrastructure
Top opportunities Key impacts
Figure 35. Top opportunities in Smart Cities and key impacts
10%
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20%
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0% 5% 10% 15% 20% 25% 30%
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BBuuiillddiinnggAdoption of automation systems that remotely control and monitor electrical equipment
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Figure 34: Global market size and outlook of smart city domains
Note: Size of the bubble represents the global market size in US$ billion
Source: Deloitte research and analysis, based on data from Technavio, Automation.com, Techcrunch, Smart City Council, “Global Smart Cities Market 2016-2020” report, “Global Smart Water Network Market 2015-2019” report
Deloitte | National Transformation in the Middle East | A Digital Journey
3. The GCC on the Digital Transformation journey
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3. The GCC on the Digital Transformation journeyAssessing the digital state in GCCAs presented in the previous section,digital ranks very high on Middle Easternagendas as it is regarded as a key enablerin the successful implementation oftransformation plans. This being said, asper the Digital Government Indexpresented earlier, countries in the regionare not always at a similar stage ofdevelopment with regard to governmentdigitization levels.
Each country has taken a different path onits respective Digital Transformationjourney. For this reason, complexity ariseswhen attempting to compare the maturitylevel of digitization across countries onboth a regional and international basis.Keeping this in mind, Deloitte’s DigitalTransformation Framework highlights thedigitization status achieved by PublicSector entities across theirtransformation. Particularly, theframework assesses multiple layers ofeach entity’s operating model, businessmodel, and customer model while alsomapping to the TM Forum Frameworxcriteria (strategy, organization, culture,customer, technology).
Additionally, each level of transformationhas a specific set of criteria as presentedin Deloitte’s Digital Transformationassessment framework (see appendix fordetailed assessment criteria). Thisassessment ultimately presents a holisticoverview on what steps need to be takenwhile showcasing the missing milestonesto reach the next level.
Overall, this framework is used as a way tomeasure the progress achieved by eachGCC country across the different themes.They are shown on the table of selectedGCC countries for each key theme(Classroom of the Future, Next GenerationCare, Smart Government, Smart Tourism,Smart Cities, Future of Mobility) and iscomplemented by key learnings from bestpractice countries.
Figure 36: Deloitte’s Digital Transformationassessment framework and criteria
DigitalGovernance
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CustomerFeedback
CustomerInvolvement
DigitalOperation
DigitalCustomer
Model DigitalBusinessModel
Technology DigitalTalent
Ecosystem
Regulation
DigitalStrategy
DigitalOperations
Model
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For each key theme, one country was selected based on the below rationale which will be subsequently assessed across Deloitte’s Digital Transformation layers:
Key themes Selected countries* Rationale
Classroom of the FutureWith more than 60 percent of the Saudi population under the age of 30, the Kingdom is putting an increasing focus on its education sector152
Next Generation Care
With the recent launch of TASMU, Qatar is going through transformational changes, especially in the healthcare sector
Smart GovernmentThe UAE has the highest regional ranking in the National ICT Index and as such is introducing innovative services and solutions to become a Smart Government
Smart TourismWith the NTP and an increased focus on religious tourism, the Kingdom has launched multiple digital initiatives such as e-bracelets and digital platforms for pilgrims
Smart Cities Dubai has launched a Smart City program with the ambition to become the Smartest City
Future of MobilityIn addition to Dubai’s smart city plan, the UAE is introducing innovative transport solutions such as Hyperloop, driverless cars and flying taxis
Figure 37: Selected GCC countries for each key theme
Note: not exhaustive
Deloitte | National Transformation in the Middle East | A Digital Journey
The below Digital Transformation framework is a four step journey which maps the digital stage of an entity across the following threemodels: business, operations and customers.
ExploringLeverage traditional technologies to automate existing capabilities
Transformation Benefits
DoingLeverage digital technologies to extend capabilities, focused on current business, operating and customer models
BecomingLeverage digital technologies - becoming more synchronized and less siloed - with more advanced changes
BeingBusiness, operating and customer models are leveraged for digital, and are profoundly different to prior business, operating or customer models
Exploring Doing Becoming Being
Organizations, ecosystems as well as new engagements, products and business models disrupt the traditional. Re-creating new business models are critical to business success in the digital world.
New digital operating models rattle the legacy environment - creating the need to “rewire” how new digital operating models will interact and infuse with the legacy business and the digital ecosystem.
Businesses must be laser-focused and integrated in how each and every customer interaction occurs. To boost the customer experience and capture real value – customer engagement must be energized.
Digital Business Model
Enhanced economic competitiveness
Greater citizenhappiness
Improved industrysustainability
Digital Operating Model
Digital Customer Model
Figure 38: Deloitte’s framework to assess the Digital Transformation journey
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Saudi Arabia
Oman
KuwaitQatar
Bahrain
UAESwitzerlandFrance
New ZealandAustralia
United States
Brasil
>79%70-79%60-69%50-59%<50%
Source: Deloitte research and analysis, based on various published national indices and indicators from World Economic Forum
Chile
Canada Sweden
Netherlands
Norway
United Kingdom
Algeria
Egypt
Nigeria
South Africa
Finland
GCCSouth KoreaGermany
Estonia
Denmark
Russia
China
India
Japan
SingaporePakistan
Digital evolution and maturity across the worldSeveral countries were selected and benchmarked to the six key themes by not only looking at their ranking in the National ICT Index,but by also assessing specific use cases undertaken by these countries with regard to digitization.
Figure 39: Map of countries assessed against National ICT Index
Classroom of the Future
Benchmark:
High Tech High (HTH) operates 12 charter schools in San Diego and Chula Vista counties. These schools bring together students, teachers, administrators, and parents through practical hands-on training, experiential learning, coupled with traditional academic education to prepare students for college.
The schools are textbook free and employs digital tools including PowerSchool, a web-based student information portal for real-time learning and communication.
Key Outcomes:
• Enhanced Student Skills Development
• Learning Personalization
Digital Business Model
Digital Operating
Model
Digital Customer
Model
• The KSA is undertaking several initiatives to introduce digital in education (i.e. Safeer for Saudis traveling abroad, Noor to digitize student grade records)
• Doroob is one of the most ambitious initiatives launched by the Kingdom which aims to upgrade workers’ skills to develop programs catered to Saudi needs
• Initiatives are selectively focusing on certain trends related to digital education; however, an overarching strategy has yet to be announced
• Multiple bodies have been created to spearhead digital initiatives. A national center for e-learning was launched under the Ministry of Education (MoE)
• MoE participated in the development of the digitization strategy with the MEP digitization unit• Tatweer, through its subsidiary holding has also been involved as the execution arm
• KSA has focused on internal digital initiatives to resolve pressing challenges faced by Saudi citizens (i.e. Doroob, for example, has based an all-inclusive approach to help solve Saudi employment)
• Broader opportunities to harness digital across the student journey are yet to be leveraged (using further web-based education platforms, developing ICT courses such as coding)
BeingBecomingDoingExploring
Figure 40: Digital Transformation journey assessment for Classroom of the Future
Source: Deloitte research and analysis, government websites and reports153
Deloitte | National Transformation in the Middle East | A Digital Journey
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Smart Cities
Benchmark:
Key Outcomes:
• Improved City Planning
• Enhanced Disaster Prevention
Digital Business Model
Digital Operating
Model
Digital Customer
Model
•
•
•
•
•
•
•
BeingBecomingDoingExploring
The UAE and Dubai, in particular, have set a bold vision to embrace Smart Cities and become the smartest city in the world by 2017. The strategy is comprised of 200 smart initiatives across 6 Smart City dimensionsThis strong drive has also influenced other entities such as the Dubai Silicon Oasis Authority to launch its own initiatives in partnership with Smart DubaiDespite this, based on the latest IESE Cities in Motion Index, Dubai is ranked 66th in the world
Smart Dubai has been created with the mandate to collaborate and orchestrate with both government entities and the private sector in relation to Smart CitiesThe entity is also creating innovation labs to build artificial intelligence skills within the government and private sector
Customer centricity is an important pillar across all initiatives since “Happiness” serves as a key theme introduced in the Dubai Plan 2021 and Smart Dubai StrategyThe “Happiness Meter” represents a measurement of citizens’ happiness which is linked to a dashboard map. Customer satisfaction is then monitored in real time with the option to act based on data results
Singapore is deploying sensors and cameras across the city-state that will allow the government to collect information on everything from the cleanliness of public spaces to the density of traffic and energy consumption. An online platform, Virtual Singapore, is being built to gather and aggregate data coming from sensors. As a result, the government in collaboration with the private sector will be able to enhance services such as better planned transportation, and monitor the spreading of infectious diseases.
Figure 41: Digital Transformation journey assessment for Smart Cities
Source: Deloitte research and analysis, government websites and reports154
Smart Government
Benchmark:
Estonia is often described as the world’s most digitized government. It was the first country to enable online voting. Estonian citizens can access and use all kinds of local and central government services in a matter of minutes such as filing taxes or using a digital signature to complete a form.
Entrepreneurs can register a company in 18 minutes, and every citizen has a unique online identity, meaning there is never a need to enter the same information twice when transacting across government services.
Key Outcomes:
• Enhanced Customer Satisfaction
• Costs Savings
• Faster Service Delivery
Digital Business Model
Digital Operating
Model
Digital Customer
Model
• The UAE has established a clear strategy to be at the forefront of smart government. This began when HH Sheikh Mohammed Bin Rashid Al Maktoum announced that all services must go mobile, resulting in a 96.3 percent overall transformation. The nation is also moving forward and building one-stop-shop platforms through integrated service delivery
• Despite these accomplishments, the country ranks only 29th in the UN e-government index ranking (2nd in the GCC)
• The Prime Minister’s Office is taking a very hands-on role with the TRA to manage digital initiatives across federal entities
• The UAE is constantly launching new projects and initiatives to instill a digital culture within the government (i.e. World Government Summit etc.)
• Its initiatives are placing a high emphasis on enhancing citizen experience (e.g. UAE plans to increase the number of m-Service users to 80 percent by 2018)
• The UAE launched a Star Rating program to measure government department service satisfaction which is currently being broadened to the private sector as well
BeingBecomingDoingExploring
Figure 42: Digital Transformation journey assessment for Smart Government
Source: Deloitte research and analysis, government websites and reports155
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Deloitte | National Transformation in the Middle East | A Digital Journey
Future of Mobility
Benchmark:
Given its relatively small area, mobility is a crucial subject for Singapore. In this context, the city-state has launched multiple initiatives to harness digital in its residents’ daily commute.
That said, Singapore has launched several apps to better plan daily commute and uses crowdsourcing as well as public transport data to come up with new options for commuters.
Additionally, it has started trials for autonomous mobility-on-demand services, envisaged to include shared self-driving shuttles or pods that can be booked through smartphones.
Key Outcomes:
• Improved Traffic Management
• Increased Commuters Satisfaction
Digital Business Model
Digital Operating
Model
Digital Customer
Model
• Large investments are being made for mobility solutions to serve as a priority initiative • The UAE is continuously introducing integrated, innovative mobility solutions including carpooling, smart car services
and digitized payments. It is also introducing new innovations not yet available elsewhere (driverless cars, Hyperloop, Dubai Integrated Mobility Platform)
• Initiatives are delivered through an ecosystem of partnerships between the private sector (Tesla, IBM, etc.) integrated with the public (DEWA, Dubai Police, etc.)
• The RTA has a central higher committee for Smart Transport comprised of members that represent each area or aspect of smart RTA. Also there is a centralized PMO managing the digital initiatives with functional resources from other departments
• Innovation labs have been introduced to think about future mobility solutions
• The “Happiness Index” is a key KPI for RTA as it focuses on providing seamless customer service and ensuring that customer needs and expectations are met
• Initiatives are methodically selected based on key criteria including, which smart services/areas will make the greatest impact on customers, and which are demanded the most
BeingBecomingDoingExploring
Figure 43: Digital Transformation journey assessment for Future of Mobility
Source: Deloitte research and analysis, government websites and reports156
Next Generation Care
Benchmark:
In Estonia, hospitals have made patient data available online since 2008. The country has leveraged blockchain technology to digitize to date more than 95 percent of the health data generated by hospitals and doctors.
Every citizen in Estonia has an online e-health record which includes medical case notes, test results, digital prescriptions and X-rays.
Key Outcomes:
• More efficient preventative measures
• Greater patient safety and experience
Digital Business Model
Digital Operating
Model
Digital Customer
Model
• Multiple initiatives have been launched by the MoH as well as MoTC as part of the Qatar Smart Program (TASMU) which is the arm that serves the realization of its digital economy
• The MoH is refreshing its e-health strategy as TASMU continues developing Smart Healthcare initiatives to be launched in 2018
• Nonetheless, to date very little digital initiatives have been implemented, apart from the Electronic Medical Records
• TASMU has been created with the objective of serving as a platform for economic growth and orchestrating initiatives in the country
• A future Platform of Platform is being built, managed by TASMU, and will be connected to specific sectorial platforms that will collect data of each relevant entity
• Qatar’s e-health strategy aims to collect and store data from customers across various touch points along each patient’s journey (i.e. primary care consultation, laboratory testing, pharmacy prescription pick-up), but has not been fully implemented yet
• TASMU is also looking at personalized healthcare and improving the overall patient experience, but its initiatives are still under implementation
BeingBecomingDoingExploring
Figure 44: Digital Transformation journey assessment for Next Generation Care
Source: Deloitte research and analysis, government websites and reports157
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Deloitte | National Transformation in the Middle East | A Digital Journey
Smart Tourism
Benchmark:
K-Style Hub is a one-stop-complex that offers information tailored for tourists. It has a tourist information center, a Korean food exhibition and experience & cultural halls.
One hall provides a virtual reality attraction where visitors can immerse themselves in 40 major tourist attractions through a 360-degree panorama gallery.
Accordingly through virtual reality, visitors can experience ski jumping in the 2018 PyengoChang Winter Olympics, or can walk around popular sites.
Key Outcomes:
• Enhanced Tourist Experience
Digital Business Model
Digital Operating
Model
Digital Customer
Model
• KSA is the 17th most visited country in the world, mainly due to religious tourism; notwithstanding, the country is looking at opportunities to introduce more digital applications
• Recent initiatives have been focused on enhancing the religious pilgrimage experience which include apps and websites that provide information and insight to pilgrims
• With the launch of Vision 2030 which aims to open up new tourism destinations, opportunities for new applications and digital platforms will grow significantly
• Digital initiatives for tourism in KSA remain at the infancy stage • Moreover, they are scattered across different entities (e.g. Ministry of Commerce & Industry, Saudi Commission for
Tourism & National Heritage)
• With more than 2 million Hajj visitors in 2015, KSA’s NTP looks to target more than 2.5 million Hajj visitors and 15 million Umrah visitors by 2020. The Kingdom has introduced digital initiatives to enhance the experience, however applications remain limited
• For example, e-Bracelets for Hajj pilgrims could connect to smartphones and provide visitor information, GPS assistance and a help desk connection
BeingBecomingDoingExploring
Figure 45: Digital Transformation journey assessment for Smart Tourism
Source: Deloitte research and analysis, government websites and reports158
Best practice countries (i.e. Estonia,Singapore, and South Korea) have set highstandards in terms of digitization, andprovide insightful case studies for regionalcountries to help drive national digitalagendas.
With regards to the regional context,multiple initiatives are being undertakento ramp up digital capabilities. However,GCC countries often encounter hurdles
limiting their ascent in the National ICTIndex. Some of these challenges arecommon across the region whereasothers are only applicable to specificcountries.
Only by addressing these challengesmethodically can the region move forwardwith their digital plan and fulfil theirambition to become fully digitized nations.
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With more than 60 percent of the Saudi population under the age of 30, the Kingdom is putting great focus on its education sector
The UAE is introducing innovative services and solutions in becoming a smart government
Dubai has launched an ambitious Smart City program with the aim to become the smartest city by 2017
In addition to Dubai’s Smart City plan, the UAE overall is introducing innovative transport solutions
With the recent launch of TASMU, Qatar is going through transformational changes especially in the healthcare sector
With the NTP and an increased focus on religious tourism, multiple digital initiatives are being set up
Classroom ofthe Future
SmartGovernment
SmartCities
Future ofMobility
Next GenerationCare
Smart Tourism
CommentsSelected countries
Exploring Doing Becoming Being
Figure 46: Digital maturity assessment of selected countries across the six themes
While the Middle East Public Sector entities are likely tospend over US$15 billion in Digital Transformation enablingtechnologies in 2018, the GCC overall lags behind manydeveloped countries in Digital Government. Countries in theregion are not all at a similar stage of development withregard to government digitization levels.
4. Implementing DigitalTransformation
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Overview of challengesGCC economies are undergoing aprofound transformation in adapting tothe needs of the fourth industrialrevolution. As described in the previoussections, there are visions, strategies andinitiatives in place to run theimplementation of this transformation.Yet, any long-term transformationprogram comes with an even greaterchallenge in managing the actual initiativesto the desired outcome.
Indeed, these challenges vary on a countrybasis depending on both the local contextand its overall position on the National ICTIndex. Nevertheless, common patternscan be extracted and categorized acrossbusiness, operations and customers in thedigital framework. These commonpatterns relate to the entire operatingmodel layers from strategy, channels,
processes, people, technology to engagedcustomers.
Digital business• Regulation is too often “reactive”and not “proactive” enough: withrapid, innovation-driven digitaltechnologies, regulators across theworld struggle to anticipate themagnitude of the shifts brought bydisruptive technologies.
• Difficulties to launch initiativesbased on the funding / governancemodel: due to the exponentiallyevolving nature of these technologies,elaborating a viable business case isoften a challenge. Moreover, in certaincountries, budget allocation betweenfederal and local level entities remain an issue.
4. Implementing DigitalTransformation
11
12
13
DigitalBusiness
DigitalOperation
DigitalCustomer
Time lag in regulation of emerging technologies
Difficulty in launching initiatives based on current funding models
Translating exponential technologies into government use cases
Services are not always built with a customer-centric perspective
Limited insight on and feedback from citizens
Customer data privacy is an increasing concern
Critical skills are not available internally
Entities are not clear regarding the ownership of digital initiatives
Basic ICT infrastructure is not always in place
Cloud security and policies need to be adapted to current and future context
Entities are reluctant to share data
Transition from a “conventional” to an “agile” organization
Lack of integration across systems and infrastructure inhibits agility and efficiency
1
2
3
4 5
6 7
8 9
10
Kuwait
SaudiArabia
Qatar
UAE
Figure 47: Digital Transformation challenges faced by Public Sector entities in GCC
“Customer-centric design:a government decides onhaving many smartservices in theory, butcustomers are rarelyinvolved in the designstage “, UAE governmententity.
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• The GCC is not leveraging the fullpotential of exponentialtechnologies: understanding thebusiness viability and feasibility ofseveral exponential technologies is still achallenge in some of the GCC countries,especially when it comes to big data, AIand blockchain.
Indeed, these challenges vary on acountry basis depending on both thelocal context and its overall position onthe National ICT Index. Nevertheless,common patterns can be extracted andcategorized across the layers of thedigital framework: business model,operations model and customers model.These map with the TM FrameworxOperation operating model layers,namely, strategy, digital, citizens,technology andpeople/organization/skills.
Digital operationsPeople• Critical skills are not availableinternally: sourcing talent has alwaysbeen considered a top challenge by thePublic Sector. This is even more relevantto finding digitally savvy skills (i.e. datascience, coding, digital marketing) whichare scarce resources in the region.
• Entities are not clear about theownership of digital initiatives: giventhe scale of changes and integrationrequired for the full implementation ofgovernment initiatives, project ownershipis critical. Nevertheless, entities in charge
of executing the digital agenda are notalways empowered with the right cross-entity mandate to ensure that initiativesare implemented.
• Transition from a “conventional” toan “agile” organization: bureaucraticinertia is a common challenge ingovernment organizations. When theyreach a stage where the “status quo” isnot an option anymore, these entitiesface usually the greatest challenge to re-adapt their organization. Moreover,effective application of agilemethodologies requires cross-collaboration across departments. Yet,too often, departments are launchinginitiatives without consulting otherentities.
Operations• Entities are reluctant to share databetween themselves: data is asensitive topic in the region for culturalreasons. Despite the push bygovernments to start making dataaccessible through, for example, opendata portals, entities remain reluctant toopen up and little progress has beenwitnessed on this front.
• Cloud Security and policies needs tobe adapted: with the sharp rise of cyberattacks in the region, cyber securityremains a key risk for regional chiefinformation officers (CIO) that oftenhinder adoption and investment in digitalplatforms and cloud computing.
Technology • Basic connectivity infrastructure isnot always in place: due to thegeographic spread and populationdistribution of some countries anddifficult landscapes, basic ICTinfrastructure is not always accessibleacross certain parts of the country whichbecomes a challenge to deliver digitalservices.
• Full automation, agility andflexibility cannot be unlockedwithout the integration of ICTsystems: the type, configuration andimpact of technology is changing at arapid pace in which two major challengesunfold. One, regarding the backwardcompatibility of new technologies withlegacy. And second, which comes with alack of overarching integration platformsneeded to bring the underlyingtechnologies to a bigger impact.
Digital customer• Services are not always built with acustomer-centric perspective: toooften digital services are launched withlittle focus on end users resulting in lowadoption and little impact. Moreover, asentities are shifting their focus todigitizing services, certain segmentsremain secluded from these changes asthey have not adopted thesetechnologies yet.
“Security is also a majorconcern, data sharing canpose a threat to securityand privacy“, Qatargovernment entity.
“Innovation exists but more at anindividual level as opposed to a grouplevel“, KSA government entity.
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A phased approach through each stepof the Digital Transformation journeyTransforming from legacy to digital, acountry’s journey requires time, patienceand most importantly a clear vision andobjectives complemented by rigorousexecution.
Jumping steps bears the risk of missingcritical components while also overlookingkey dependencies. For these reasons, it isimportant to detail the necessary actionsthat need to be undertaken across eachstage of the Digital Transformationframework and operating model layers.
This will give a clear roadmap withconcrete steps and actions to become a good practice digital organization.
Play to win - aim for a digital leadership position across private and public sectors
Collaborate with ICT players to define next gen policies for emerging tech
Co-create with digital value chain players on government services
Instill a culture of innovation and start applying agile on pilot new/improved services
Promote digital literacy through tailored trainings. Develop incentive mechanisms to attract digital talent
Create a governance body in charge of the digital agenda and empower to execute
Promote national infrastructure rollouts. Develop national platforms to facilitate integration
Listen to customers in service design to create a bespoke experience and favor adoption
Implement systems to capture real-time data and draw insights to enhance services
Digitalstrategy
DigitalBusiness
Model
DigitalOperation
Model
DigitalCustomer
Model
Regulation
Customerinvolvement
Customerfeedback
Current status of digital maturity in GCC (average based on four focus countries)
Potential digital maturity in GCC (average based on four focus countries) if roadmap adopted
Roadmap steps mapped to challenges addressed
Ecosystem
Digitaloperations
Digitaltalent
Digitalgovernance
Technology
Exploring Doing Becoming Being
1
3
7
4
8
6
9 10
11
11 12
Figure 48: Roadmap to Digital Transformation
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Digital Transformation governance Digital Transformation implementationprograms are a complex set of crossfunctional activities that requiremanagement office structures whichblend in the mandates to strategize, plan,innovate and implement change. Onesuch concept is a digital value office (DVO)that combines these functions into apurpose built agile organization.
The implementation of the digital valueoffice, empowered to support and enablethe full lifecycle of a transformation,addresses a wide variety of digitalimplementation challenges forgovernments.
The transformation lifecycle begins with a clear blueprint of strategic initiatives,involved stakeholders, governancestructures and funding plans for theimplementation of digital initiatives. The
assessments undertaken and roadmapsdeveloped during the sourcing stage willfeed into the DVO’s ideation process toproduce minimum viable products (MVPs)at each stage of development.
This ensures that the customer’s personais brought into context. Consequently witha viable business case and executiveapproval coupled with a solid concept plan(including market research, customerpersona), these products will be scaledand receive funding support.
Responsible for the overallimplementation of Digital Transformationin Public Sector organizations, the DVO willdeliver success across the lifecycle in twokey approaches: 1) govern all stages andenable the digitalization of functions, 2)apply rapid innovation to ensure thefeasibility, viability and desirability of digitaloutcomes.
Deloitte | National Transformation in the Middle East | A Digital Journey
Digital factory – OperationsDigitisation – Initiation
Blueprint Sourcing Development Scaling
Value Proposition MinimumViable Product
Strategy articulation
Consult key stakeholders
Determine governancestructure
Secure funding
Prioritize initiatives and develop roadmap
Outside-in
Digital ValueOffice
Ideas in
Initial DigitalSteercom Review
ChangeManagement
DigitalMaturity
PartnerEcosystem
Design &Assurance
Technology & Platforms
BusinessCase
ExecutiveApproval
Funding &Implementation
Track & Measure Benefits
PredefinedAnnual Budget
Concept to MVP MVP to Reality
Figure 49: Role of DVO in the Digital Transformation lifecycle
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Application of DVO to successfullyimplement Digital Transformation inthe Public SectorThe DVO is set up to incubate all theenablers required for a successful DigitalTransformation. Enablers can includeidentifying strategic direction,understanding citizen needs and trends,instilling an innovation culture inorganizations, regulating policies,developing agile solutions, monitoringdigital maturity and securing suitabletechnological and ICT infrastructure andpartnerships. Through these enablers, theDVO acts as the custodian of entities’maturity to digital and the prime authorityresponsible for delivering the digitaloutcomes.
Operating across its six dimensions, theDVO first becomes the agency to bring anoutside-in view to the federal entity. Agood example is assessing the level ofcustomer satisfaction with potentially fullyautomating e-service centers.
The DVO acts as a change champion toovercome the issue of status-quo mindsets that create inertia to the pace ofchange. New regulation and policiesaround data sharing, managing andhosting is a good case in point.
Technically, the DVO drives innovationthrough its ideation of new digital usecases and agile development tocontinuously enhance solutions (i.e. theuse of robotics in government services,automation in smart buildings). Tocomplement this evolution of ideas, theDVO ensures data management, security,
Figure 50: DVO enablers for Digital Transformation
Trends Citizen Needs
Buy In + Awareness
Best Suited Delivery
Information Management Architecture
Research
Culture of Innovation Efficient Organization
Risk ManagementDigital Maturity Transparency
ICT Vendors Start-Ups Platforms
Agile Approach Evolve Roadmap
Infrastructure &Security
Digital Design Authority
Monitoring exponential technology trends across sectors with a focus on customer needs
Driving change and encouraging the adoption of digital in organizations to make an impact
Measuring and tracking digital maturity and managing risks of adoption and transparency
Enabling better ICT infrastructure, security and managed services
Ideation of new digital use cases with an agile approach against the digital roadmap
Deliver solutions with partners across the full value chain with funding and expert support
DVO Dimensions Enablers Description
Outside-In View
Change Management
Measure & Track Digital Maturity
Design Thinking and Delivery Assurance
Integrating and Establishing the Partner Ecosystem
Digital Technology Architecture
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networks and infrastructure are updatedand aligned to the technologies they weredesigned for (e.g. cloud computing,blockchain).
For the effective implementation of digitalinitiatives with minimized costs andexpedited delivery, the DVO formspartnerships across all relevant entities.For example, governance authorities suchas the DVO will increasingly play animportant part of bridging the gapbetween local and federal entities in theUAE by enabling policies and decisionsthat encourage local entities’ joint digitalcollaboration with federal entities.
Cutting across all these criticalimplementation functions, the DVOdelivers a consistent mechanism to ideate,conceptualize, run and manage thetransformation implementation program.
Innovation as a key success factor toenable fast-paced DigitalTransformationInnovation management sits at the core ofa successful Digital Transformation plan,and inherently, Public Sector entities in the region and across the globe arechallenged to be the best at incubatinginnovation. Transformation will ensure theoptimization of organizations, howeverwithout innovation, governments willstruggle to rapidly create ideas thatsimultaneously adhere to changingcustomer behaviors, adopting emergingand exponential technologies andachieving strategic business plans.
DVO drives an agile approach into theinnovation stages of the implementationprogram. This is achieved by introducingminimum viable products deliverythroughout the lifecycle. This iterative way
of working in sprints begins withinnovatively imagining an idea, deliveringthe desired product and continuouslyimproving to match customer needs anddesired outcomes
Through this approach, DVO deliversinnovative solutions across that arefeasible – designed with sound ITinfrastructure, viable – aligned with thebusiness operating model, desirable –adhered to shifting customer needs andrequirements.
Figure 51: Pathway according to the DVO agile approach to launch a MVP
FEASIBILITY
Segmentation and customer journey mapping
Finalize MVP, brand key & omni channel GTM
planning
DESIRABILITY
Fine tune business case & roadmap
VIABILITY
Deep dive on concept & business case
Assess legal & regulatory requirements
Design pricing program &
booking structure
Define organization
Define business operating model
Service design & MVP development
IT architecture design & solution
selection
Design solution architecture & select IT
solutions
Define IT delivery organization
Design functional components architecture
Evaluatescenarios
Market research & consumer validation
Launch the MVP 1.0
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Outcomes and impact Successful Digital Transformation, whenimplemented in the Public Sector deliversa high impact both on economy andsociety. Implementation of digitaltechnologies enable governments todeliver sustainable solutions to loweroperational costs and contribute tosavings. Dubai, through its transition to e-government services has made a savingsimpact of US$1.17 billion159. Similarly,Chicago’s smart solutions to vehicle trafficare aimed to deliver US$14 billion to GDPunder energy efficiency, traffic congestionand fuel costs160.
Implementing digital solutions furtherdrives the knowledge economy agendasagain contributing to the skills andlearning impacts.
Successful Digital Transformation, when implemented in the Public Sectordelivers a high impact both on economyand society. Implementation of digitaltechnologies enable governments todeliver sustainable solutions to loweroperational costs and contribute tosavings.
Deloitte | National Transformation in the Middle East | A Digital Journey
5. Public Service in its broader ecosystem
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Supp
ort
acti
viti
esCo
re a
ctiv
itie
s
Supp
ort
acti
viti
esCo
re a
ctiv
itie
s
Current Public Sector Value Chain – Technology as support New Public Sector Value Chain – Technology at the core
Human Resources Management
Financial Management
Procurement
Technology
People
Employeeengagement
Service
Client satisfaction
Trust
Citizentrust
People
Employeeengagement
Service
Client satisfaction
Trust
Citizentrust
Infrastructure
Government Service Management with Data visualization
Data Analytics & Information Management
Financial Management
Cyber security
HR and Procurement
Integrated ICT Infrastructure
Dig
ital
tech
nolo
gies
Figure 52: Legacy and future Public Sector value chain
The digital transition of the PublicSector value chainThe journey to maturity in digital servicesis charted by re-defining ambitions withmatched scales, engaging in new levels ofexperience, evolving to achieve moreefficient operations and finding ways toengage with new ecosystems. The ICTsector plays a key role in innovation andintegration to lay the foundation acrossthis journey from ambition toengagement.
• Ambition and scale: governments in the GCC are focused ondefining new horizons of play. It is criticalfor these governments to strike the rightbalance between ambition and scale interms of where they stand on the digitalmaturity scale and ICT adoption
• Experience and engagement:governments will re-think customer andcitizen engagements; customer-centricitywill be able to be put to use throughdesign thinking, technology and digitalbest practices
• Operational evolution:governments will continue to undertakelarge scale operational transformations.This will be driven by changes toorganizational DNA, employeeengagement and automation. ICT playerswill lead in innovation across digitaltechnologies to enable this evolution
• Engagement platforms:last but not least, the ecosystemdynamics of the Public Sector will changeprofoundly. Suppliers, customers,providers and governing bodies will
interact in ways that are seamless anddigital. Integrated national platforms that encompass emerging technologies,digital ecosystem players and the wholeof government will enable this newfuture.
The role of ICT in the Public Sector servicedelivery value chain will dramaticallychange in the digital age. This role is beingrapidly redefined from that of a passive,supporting enabler to that of a matrix thatfeeds the entire value chain while activelydriving how governments operate andserve their citizens. New technologies willbe closely embedded in the fulfillment ofcore government activties. This applies tothe entire value chain from policyformulation to service delivery.
5. Public Service in its broader ecosystem
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Public Sector Trends
Defense Key Themes
Smart City
Smart Tourism
Next Generation Care
Classroom of the Future
Smart Government
Future of Mobility
Target ICT Solutions
Data Analytics
AI
Robotics
5G
Integrated Platforms
Blockchain
AR / VR
Cloud Computing
Public Sector Technology Domain
Dat
a D
riven
Pol
icy
Soci
al
Mob
ility
Plat
form
s
Secu
rity
Education
Energy & Environment
Healthcare
Law & Justice
Human Services
Transport/ Tourism
Cross Sectors
Figure 53: ICT mapping to Public Sector domains
Embedding emerging technologies andcustomer-centricity in an agile, prototype-based approach will give regionalgovernments the opportunity to resolvecertain challenges faced when deliveringcore services. Such activites will increasethe GCC’s position as a leader in PublicSector innovation across the world.
Redefining the ecosystem: fromtechnology enablers to platformsThe emerging technologies layer in thenew Public Sector value chain is complexand rapidly evolving. Public Sectortechnology domains have emerged as acommon set of verticals that are highimpact with regard to ICT investmentareas. These include social, mobility, datadriven policy, platforms and security. Inturn, each of these domains consist of anumber of ICT solutions ranging fromanalytics to cloud. More often than not,such ICT solutions are also tailored to keythemes, or sectors, as discussed earlier inthis paper. For instance, plans to developsmart cities include the implementation ofnext generation infrastructure such as IoT,
5G and cloud services combined withapplications based on AI and analytics.
As expressed earlier in this paper,governments and regulators face adaunting task of coping with the fastmoving pace of emerging technologies,especially when it comes to identifyingtheir relevance in policy making or servicedelivery. Data analytics will likely shapepolicy and decision making throughpredictions of health diseases, consumerbehaviors and trends, and scenarios forthe likelihood of crimes. The use of cloudcomputing and blockchain solutions willemerge in response to the demand fordata sharing between the government andpublic. Cyber security and smart securityservices, in some cases are already beingimplemented to complement data sharingplatforms and safeguard user information,while cloud computing and blockchainalso have the potential to be used forintegrating medical records, tourismbundles, e-learning content and themajority of e-government services forcitizens.
Embedding emergingtechnologies andcustomer-centricity in anagile, prototype-basedapproach will giveregional governments theopportunity to resolvecertain challenges facedwhen delivering coreservices.
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Other examples include: AR and VR, whichcan be leveraged in education systems todrive immersive learning and a moreinclusive environment in digitalizedclassrooms. AI can be applied inclassrooms to develop better curricula aswell as in the development of autonomouscars. Robotics, an emerging technologythat exists in the form of Robotics ProcessAutomation reduces the rate of humanerrors and automates smart buildingsthrough remote-controlled electricalequipment that reduces energyconsumption.
How can governments overcome thecomplexity of fast evolving technologies as the digital ecosystem is becomingincreasingly complex (pure play digitalplayers, start-ups etc.)? How can they best address daunting stakeholdermanagement tasks with multiplegovernment agencies and scattered data?
One element of response is the concept of Platform of Platforms (figure 54). Byeasing the integration betweengovernment stakeholders, digital privatesector providers and technology players,the Platform of Platforms conceptaddresses a number of the key concernsoutlined earlier. Furthermore, it decreasesrisk in Public Sector investment by movingto a platform concept, it accelerates theadoption of data sharing between entities(through a data lake or service bus), itpromotes closer collaboration betweenpartners in the ecosystem, and lastly, itreduces the hurdles of technologyadoption by government players.
In a platform oriented world, supported bya new digital ecosystem, the flow of valueand relationships between governments,citizens and private entities will beredefined around the “government cloud”as described in figure 55.
Figure 54: Platform of Platforms
API
… …
Public Sector Applications
Future of Mobility
Classroom of the Future
SmartGovernment
SmartTourism
Smart Cities
Next Generation
Care
Digital Ecosystem Platform
Amazon
HorizontalVertical
Tourism:Airbnb,
Hoojoozat
Mobility:Uber,
Careem
Other Ministries
Hub
MoIHub
MoHHub
MoEHub
Other Platforms
Big DataPlatform
IoTPlatform
AIPlatform Noon
APIAPI
Whole of Government Platform Technology as a Platform
API
CloudPipeDevice
Deloitte | National Transformation in the Middle East | A Digital Journey
In a platform orientatedworld, supposed by a newdigital ecosystem, theflow of value andrelationships betweengovernments, citizensand private entities willbe redefined around the“government cloud”.
Figure 55: Flow of value in an ecosystem-based government services model161
Traditional Government Services Model
Application Platforms Industry Solutions Services Orchestration
Association
Association
Future Government Services Model: Ecosystem Curation
Flow of value
Government Government
Citizen Citizen
Third PartyGovernment
CloudPlatform
Ecos
yste
m 1 Ecosystem
2
Ecos
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m 4
Ecosystem 3
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The digital opportunity: from conceptto realityThe opportunities presented by digitaltechnologies are substantial and have thepotential to reshape Middle Easterneconomies. Governments have anextroardinary role to play in building theindustry organically. They have the powerto not only expand partnerships withmajor technology players, but also to rollout tailored incentives to encourage anecosystem of startups, accelerators, VCs,and other relevant players.
By catalyzing these changes, the potentialcontribution of digital to GDP coulddouble in the years to come if it were toreach that of more advanced countries.For the GCC only, this could represent aUS$50 billion increment, to be comparedwith the US$15 billion of yearly investmentin Digital Transformation enabling
technologies in these countries currently.This, in turn, fulfills the objectives ofincreased economic diversificationobjectives set out in national strategies.
Going forward, national digital strategiesmust be underpinned by four keyprinciples:
• Riding the disruption wave: PublicSector entities should adopt disruptionnot only as a mode of operation, but as a way of formulating policies.Governments should not consider thesechanges as threats to their businessmodel, but as an opportunity to redefinethemselves and their economies. Anexample would include breaking upeconomic bottlenecks in certainindustries which could ultimately helpattract new players and fosterinnovation.
Figure 56: Digital contribution to GDP*
Note: *As measured by digital share in privateconsumption, private investment, governmentexpenditure, imports & exports
Source: Deloitte research and analysis, based alsoon data from multiple sources: Euromonitor, IDC,UN, World Bank, others 162, 163, 164
4.1%
8.0%
United StatesMiddle East
Growth Potential
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Deloitte | National Transformation in the Middle East | A Digital Journey
Ecosystem
Technologies
Concept to Service
National government
Stateleadership
Businessand citizens
Telcos & service providers
Professional services
Feasibilityconcept
Buildprototype
Launch minimumviable product
Scale successfully
Concept Reality
Creation lab
Sensors Robotics SDN 3D printing AR/VR Blockchain Machine LearningArtificial Intelligence
Cloud Big Data Analytics Integrated platforms Internet of Things NextGen security 5G Data Dashboard
Figure 57: Delivering Digital Transformation from concept to reality165
By catalyzing these changes, the potential contribution ofdigital to GDP could double in the years to come if the regionwere to reach that of more advanced countries. For the GCC only, this could represent a US$50 billion increment,compared to the US$15 billion currently spent on DigitalTransformation enabling technologies.
• Creating new horizons: Making senseof new technologies is not always easy.Exponential technologies open up newavenues and applications that have thepotential to dramatically change the wayservices are being delivered. As opposedto other parts of the world, governmentsin the GCC play the role of a catalyst withregards to technology adoption. Rather,staying at the forefront of technologyadoption would incentivize regionalprivate sector companies to embracethe wave and increase their share ofdigital technology spending.
• Delivering an experience: Bringingcustomers into the heart of innovationwill change the entire service delivery
concept from that of traditional servicedelivery, to that of experience delivery.By doing this, governments will not onlybe able to enhance citizen satisfaction,but also have other indirect effects suchas an increased adoption of services andpopulation digital literacy rate.
• Fail fast, adjust quickly: Incorporatingstrategies for agile methods of “conceptto service” development (as detailed infigure 57) when designing a new servicetranslates into enhanced delivery speed,and greater service performance that ismore adapted to customer expectations,translating ultimately into greatersatifsaction and adoption.
Going forward, nationaldigital strategies must beunderpinned by four keyprinciples: riding thedisruption wave, creatingnew horizons, deliveringan experience and failfast, but adjust quickly.
6. Implications for Government and Industry
Digital maturity area
Key Issue Implication
Digital Business Model
Time lag in regulation of emergingtechnologies
Collaborate with ICT players to define next gen policiesfor emerging tech
Difficulty in launching initiatives based oncurrent funding models
Co-create with digital value chain players on government services
Translating exponential technologies intogovernment use cases
Digital Operating Model
Critical skills are not available internally
Promote digital literacy through tailored trainings.Develop incentive mechanisms to attract digital talent
Entities are not clear regarding the ownershipof digital initiatives
Create a governance body in charge of the digitalagenda and empowered to execute
Basic infrastructure is not always in place
Promote national infrastructure rollouts
Entities are reluctant to share data Create a governance body in charge of the digitalagenda and empowered to execute and developnational platforms to facilitate integration
Transition from a “conventional”to an “agile” organization
Instill a culture of innovation and start applying agile on pilot new/improved services
Lack of integration across systems and infrastructure inhibits agility and efficiency
Develop national platforms to facilitate integration
Cloud security and policies need to be adapted to current and future context
Develop national platforms to facilitate integration and develop overarching cloud policies on theseplatforms
Digital Customer Model
Services are not always built with a customer-centric perspective
Listen to customers in service design to create abespoke experience and favor adoption
Limited insight on and feedback from citizens
Implement systems to capture real-time data anddraw insights to enhance services
Customer data privacy is an increasing concern
Enforce data privacy legislations and includeanonymization rules in big data policies
83
AppendixAppendix 1: Deloitte National ICTIndex methodologyDeloitte’s National ICT Index is a metricthat indicates the Digital Governmentcapabilities of a country. It is an average ofa variety of specific ICT readiness factorsrelated to Digital Government:
• Infrastructure adoption (i.e.telecommunications infrastructureadoption)
• Political and regulatory ICT environment• Government ICT adoption• Social ICT impact• ICT knowledge
Each of the ICT readiness factors arecalculated as an average of ICT indicesthat are indicators of Digital Governmentcapability. These indices have beencompiled and averaged from global ICTreports and national government statisticsto calculate the National ICT Index.
This methodology, components andcalculation of the Deloitte National ICTIndex are illustrated in the following figure.
Figure 58: National ICT Index methodology, components and calculation
Note: No figures for the Tertiary education gross enrollment rate criteria were available for Canada as per the 2016 WEF Global Information Report. Consequently,the average index calculation did not include this criteria.
Source: “Global Information Technology Report 2016”, World Economic Forum – for all components except smartphone penetration. Sources for smartphonepenetration include eMarketer, GSMA, Statista and GCC government statistics (e.g. Qatar Ministry of Transport and Communications in Qatar)
LLaawwss rreellaattiinngg ttoo IICCTT IInntteelllleeccttuuaall pprrooppeerrttyy pprrootteeccttiioonn
%% SSmmaarrttpphhoonnee ppeenneettrraattiioonn %% MMoobbiillee BBBB ppeenneettrraattiioonn %% FFiixxeedd bbrrooaaddbbaanndd
IImmppoorrttaannccee ooff IICCTT ttoo ggoovveerrnnmmeenntt vviissiioonn GGoovveerrnnmmeenntt oonnlliinnee sseerrvviicceess
IICCTT uussee aanndd ggoovveerrnnmmeenntt eefffificciieennccyy
IImmppaacctt ooff IICCTT oonn aacccceessss ttoo bbaassiicc sseerrvviicceess IInntteerrnneett aacccceessss iinn sscchhoooollss ee--ppaarrttiicciippaattiioonn iinnddeexx ((00--11))
IICCTT ppaatteenntt aapppplliiccaattiioonnss ppeerr mmiilllliioonn ppeeooppllee
TTeerrttiiaarryy eedduuccaattiioonn ggrroossss eennrroollllmmeenntt rraattee
QQuuaalliittyy ooff mmaatthh aanndd sscciieennccee eedduuccaattiioonn
SSeeccoonnddaarryy eedduuccaattiioonn ggrroossss eennrroollllmmeenntt rraattee
ICT indices that are indicators of Digital Government capability
ICT readiness factors
PPoolliittiiccaall aanndd rreegguullaattoorryy IICCTT eennvviirroonnmmeenntt
NNaattiioonnaall IICCTT iinnffrraassttrruuccttuurree
aaddooppttiioonn
GGoovveerrnnmmeenntt IICCTT aaddooppttiioonn
SSoocciiaall IICCTT iimmppaacctt
NNaattiioonnaall IICCTT kknnoowwlleeddggee
NNaattiioonnaall IICCTT IInnddeexx
Average
Average
Average
Average
Average
Average
Deloitte | National Transformation in the Middle East | A Digital Journey
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Appendix 2: Digital initiatives list
CCllaassssrroooomm ooff tthhee FFuuttuurree FFuuttuurree ooff MMoobbiilliittyy SSmmaarrtt TToouurriissmm NNeexxtt GGeenneerraattiioonn CCaarree SSmmaarrtt CCiittiieess SSmmaarrtt GGoovveerrnnmmeenntt
SSaauuddii AArraabbiiaa
• University e-services framework (Jame3a)
• Digital education for students & teachers
• ICT training centers
• Digital innovation contests for schools
• Guidance for ICT industry job seekers
• Modern curriculums
• Training for ICT industry job seekers
• Digital literacy program
• Education platform (Doroob)
• National e-Training program
• Digital government capability building
• Central national students database
• Expansion of Hajj & Umrah capacity
• e-transport customer services
• Info platform for Hajj & Umrah visitors
• e-Training for Hajj & Umrah workers
• e-Appointments and referrals
• Electronic Health Record
• e-Health program
• Yanbu Smart City • Automate customs procedures
• e-Service center for investors
• e-Services for SMEs
• New Authority for Yassere-Gov program
• Smart Government service center
• Charity platform (Namaa System)
• e-Commerce stimulus and support program
• New e-commerce council
• Civil Service information center
UUnniitteedd AArraabb EEmmiirraatteess
• Smart equipment for schools & universities
• Digital classroom platform
• Schools innovation libraries
• Smart learning and teaching technologies
• e-learning between government schools and ICT firms
• Educational apps accessible offline
• Training & learning solutions provider
• Smart school buses
• Adopt autonomous mobility technologies
• Integrated IoT based transport systems
• Driverless vehicles
• Unified transport & traffic control center
• Mobile passports & wallets for travelers
• Mobile biometric & facial recognition
• Integrated airline and partner services
• Automated border control (one gate)
• Electronic medical records (NUMR)
• e-Health checks
• Telemedicine center
• Mobile healthcare
• Integrated healthcare provision
• Develop talent for digital health sector
• Paperless hospitals
• e-store for medical equipment & supplies
• Develop e-Health solutions with ICT sector
• New integrated free zone technology park
• Integrated IoT-enabled city infrastructure
• Innovative business community services
• Remote, paperless & cashless e-Services
• Integrated gov. data & collaboration platform
• Smart government cloud infrastructure (CloudOne)
• Digitalize gov services with mPay platform
QQaattaarr
• ICT learning platform for elderly (Wasla)
• e-education learning & services program
• e-training program for graduates
• Integrated education infrastructure
• IoT-based smart parking solutions
• Connected transport network
• Digitally-enabled high quality taxi systems
• Intelligent transport systems
• Augmented reality city system for visitors
• Indoor navigation for key locations
• Single Transport Pass for universal ticketing
• Smart health services (TASMU)
• Healthcare innovation (Your Health First)
• eHealth solutions implementation
• Integrated system of healthcare providers
• Lusail Smart City
• Smart water network
• City pollution watch (data & analytics)
• Next generation broadband
• Automate government HR operations
• e-business program to connect businesses
• Integrated government data sharing platform
• Enrich ICT environment
• Expand e-Gov services
KKuuwwaaiitt
• e-learning platform for education system
• Smart education products and services
• Build ICT-enabled transport systems
• e-Health services & management system
• IoT-enabled personal health solutions
• Build Smart Cities • e-Government program
Deloitte | National Transformation in the Middle East | A Digital Journey
Note: digital initiatives list above is not exchaustiveSource: Official government websites and press releases, Monitor Deloitte research and analysis166
85
Appendix 3: Deloitte Digital Maturity Assessment framework
The tables below define each of the digital maturity stages across each organizational layer (business, operations, customers) andcriteria.
Figure 58: Digital business model
DDiiggiittaall BBuussiinneessss MMooddeell
DDiiggiittaall ssttrraatteeggyy
RReegguullaattiioonn
DDiiggiittaall eeccoossyysstteemm
A best in class regulatory framework has been implemented fostering innovation across all the
technology dimensions
A regulatory framework has been implemented favoring the
development of an innovation-driven ecosystem across certain
technology dimensions
A regulatory framework is being developed by consulting partners
across the ecosystem
An organized framework is in place to ensure that broader stakeholders are involved in
implementing digital initiatives
Specific digital initiatives are built in cooperation with the private sector and other governmental
entities
No or very limited supporting digital ecosystem in place (i.e. the
organization is not leveraging digital ecosystem players to
enhance their business)
EExxpplloorriinngg DDooiinngg BBeeccoommiinngg BBeeiinngg
No regulatory framework is in place and organizations that do
have this in place have not adapted it to current needs
The private sector and other entities play an integral role in the digital initiatives being undertaken
by the organization to ensure success
Clear and ambitious strategy with initiatives being implemented
placing the country at the forefront of digital
A clear digital strategy is in place with key digital initiatives under
implementation
Digital initiatives are undertaken in a siloed way with no clear
strategic framework to follow that cuts across the organization
Digital is not seen as a priority and very limited initiatives are being
undertaken
Figure 59: Digital operating model
DDiiggiittaall OOppeerraattiinngg MMooddeell
EExxpplloorriinngg DDooiinngg BBeeccoommiinngg BBeeiinngg
DDiiggiittaall ooppeerraattiioonnss
Organization is an industry leader through its universal
embracement of agility as the way of getting things done
Significant application of agile processes, technology &
operations for greater flexibility and performance
Some functions/aspects are looking to embrace agility and are more agile in their approach than
others
Internal processes are mainly manual
DDiiggiittaall ttaalleenntt
Some digital talent is already in-house and an agile learning
approach is increasingly used to train current and new employees
Limited talent available but the organization is seeking to enhance
its digital capability with digital talent recruitment plans in place
No digital talent available in-house
The organization has a very strong digital talent force both in terms
of size and the wide range of digital skills it commands
TTeecchhnnoollooggyy
The organization is leveraging exponential disruptive
technologies (e.g. AI, AR, blockchain, machine learning, 5G)
to be an industry leader
Digital technologies are enabling agility, efficiencies, flexibility, and the benefits are transforming the
organization’s business
Digital technologies are being deployed and integrated with the organization’s systems (legacy and
new)
Very few applications of digital technologies and very limited
exploration of use cases through proof of concepts
DDiiggiittaall ggoovveerrnnaannccee
A central digital entity/function is in place with a governance body allowing it to explore and pursue
Digital Transformation efforts
A digital entity/function is being set up but is not yet empowered with the right mandate to truly
embark on Digital Transformation
No dedicated entity/function related to digital
A central digital entity/function is in place with a strong governance body with the authority to push and drive Digital Transformation
across the organization
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86
Figure 60: Digital customer model
DDiiggiittaall CCuussttoommeerr MMooddeell
CCuussttoommeerr IInnvvoollvveemmeenntt
CCuussttoommeerr FFeeeeddbbaacckk
The organization across all functions adopts iterative
processes to incorporate customer feedback from a wide range of
sources (e.g. social medial, survey) to continuously improve product
and service quality
Customer feedback processes and mechanisms are centralized in one
place to capture real-time and infrequent feedback which is used
to drive customer insight based improvement in the organization’s
offerings
The organization has a defined customer feedback process and mechanism in place to receive
feedback and complaints. Customer feedback is
incorporated to identify opportunities to improve offerings
EExxpplloorriinngg DDooiinngg BBeeccoommiinngg BBeeiinngg
No initiative / process in place for improving digital services based
on customer feedback
The organization is fundamentallycustomer-centric, placing the customer at the heart of the
design process of all products and services. Customers express loyalty
and are highly satisfied with the experience
The organization actively engages with customers to solicit first hand
customer feedback, involving them in the design process to
shape the organization’s products and services together
Digital services are designed for customers to an extent. Second hand customer behaviors and feedback are analyzed (e.g. via analytics and social
sensing) to develop an understanding of the customer’s
needs in the design stage
Customers are taken for granted and their needs are not gauged. The organization does not offer
digital services of value to customers
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Glossary aeCERT UAE Computer Emergency
Response TeamAI Artificial IntelligenceAPI Application Programmable
InterfaceAR Augmented RealityATS Dubai Autonomous
Transportation StrategyCAGR Compound Annual Growth RateCAPEX Capital Expenditure CIO Chief Information OfficerCITRA Kuwait Communication and
Information TechnologyRegulatory Authority
DCAA Dubai Civil Aviation AuthorityDEWA Dubai Electricity & Water
AuthorityDSOA Dubai Silicon Oasis AuthorityDTCM Dubai Department of Tourism
and Commerce MarketingDVO Digital Value OfficeEC3 Enterprise Command Control
CentreEHR Electronic Health RecordFN Federal NetworkG2B Government-to-BusinessG2C Government-to-CitizenG2G Government-to-Government GCC Gulf Cooperation CouncilGDP Gross Domestic ProductHAAD Health Authority of Abu DhabiICT Information & Communications
TechnologyIIS Qatar Integrated Intelligence
ServicesIoT Internet of ThingsIT Information TechnologyKDP Kuwait Development PlanKPI Key Performance IndicatorKSA Kingdom of Saudi ArabiaM2M Machine-to-MachineMENA Middle East & North Africa
MOCI Saudi Ministry of Culture andInformation
MOE Ministry of EducationMOH Ministry of HealthMOHAP UAE Ministry of Health and
PreventionMOLSD Saudi Ministry of Labor and
Social DevelopmentMOMRA Saudi Ministry of Municipal and
Rural AffairsMOOC Massive Open Online CourseMOTC Qatar Ministry of Transport and
CommunicationMoU Memorandum of UnderstandingMVP Minimum Viable ProductNFC Near Field CommunicationNGO Non-governmental OrganizationNTP Saudi National Transformation
PlanNUMR UAE National United Medical
Record ProjectQNeDP Qatar’s Updated National E-
Health and Data ProgramOPEX Operating ExpensesPIF Saudi Public Investment FundPMO Project Management OfficePPP Public-Private PartnershipRTA Road and Transport AuthorityR&D Research and DevelopmentSME Small & Medium-Sized
EnterprisesSTEM Science, Technology, Engineering
and MathTMMS Abu Dhabi Transportation
Mobility Management StrategyTRA UAE Telecommunications
Regulatory AuthorityUAE United Arab EmiratesUN United NationsUS$ United States DollarsVR Virtual Reality
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Endnotes1. “Gov2020: Explore the Future of Government
2020” website, Deloitte University Press:http://government-2020.dupress.com/
2. “Illiteracy will cost global economy $1.2tn in2015”, Guardian (25 Aug 2015):www.theguardian.com/global-development/2015/aug/25/illiteracy-will-cost-global-economy-1-trillion-dollars-in-2015
3. “Gov2020: Explore the Future of Government2020” website, Deloitte University Press:http://government-2020.dupress.com/
4. “IDC Forecasts $1.2 Trillion in WorldwideSpending on Digital TransformationTechnologies in 2017”, IDC (23 Feb 2017):www.idc.com/getdoc.jsp?containerId=prUS42327517
5. “Understanding the impact of digitalization onsociety” report, World Economic Forum:http://reports.weforum.org/digital-transformation/understanding-the-impact-of-digitalization-on-society/
6. “The Journey to Government's DigitalTransformation” report, Deloitte UniversityPress (2015)
7. “Digital Government Transformation” report,Deloitte commissioned by Adobe (2015)
8. “The Journey to Government's DigitalTransformation” report, Deloitte UniversityPress (2015)
9. “Tech Trends 2016, Innovating in the digital era,A Public Sector perspective”, Deloitte (2016)
10. “Tech Trends 2016, Innovating in the digital era,A Public Sector perspective”, Deloitte (2016)
11. “Better public services for business, betterpublic services result 9, Business gains valuefrom easy and seamless dealings withgovernment, Result action plan, Ministry ofBusiness, Innovation and Employment, (2015):www.mbie.govt.nz/info-services/business/better-for-business/documents-image-library/result-action-plan.pdf
12. “Gov2020: Explore the Future of Government2020” website, Deloitte University Press:http://government-2020.dupress.com/
13A. Official government websites and pressreleases. See: Saudi Arabia Vision 2030 –www.vision2030.gov.sa/en ; UAE Vision 2021 –www.vision2021.ae/en ; Qatar Vision 2030 –http://www.mdps.gov.qa/en/qnv1/Pages/default.aspx ; Kuwait vision and plans –www.newkuwait.gov.kw/en/
13B. “Waking up to new reality, Middle Eastundergoes massive transformation”,TrendsMENA.com, Trends Magazine (12 Apr2017): https://trendsmena.com/social/waking-new-reality-middle-east-undergoes-massive-transformation
14. Official government websites and pressreleases. See: Saudi Arabia Vision 2030 –www.vision2030.gov.sa/en; UAE Vision 2021 –www.vision2021.ae/en; Qatar Vision 2030 –http://www.mdps.gov.qa/en/qnv1/Pages/default.aspx ; Kuwait vision and plans –www.newkuwait.gov.kw/en/
15. “UAE achieves 96.3 percent success rate in m-Government”, Emirates 24/7 (24 May 2015),http://www.emirates247.com/news/government/uae-achieves-96-3-success-rate-in-m-government-mohammed-2015-05-24-1.591686
16. Official government websites and pressreleases. See: Saudi Arabia Vision 2030 –www.vision2030.gov.sa/en; UAE Vision 2021 –www.vision2021.ae/en; Qatar Vision 2030 –http://www.mdps.gov.qa/en/qnv1/Pages/default.aspx ; Kuwait vision and plans –www.newkuwait.gov.kw/en/
17. Healthcare Section, TASMU - Smart Qatarwebsite: http://Tasmu.gov.qa/en
18. “What is the UAE doing right with healthcarethat the rest of the world can learn from”,Future Health Index (24 Jan 2017):https://www.futurehealthindex.com/2017/01/24/uae-right-healthcare-rest-world-can-learn/
19. “UAE e-health week 2016 showcased bestpractice award winning hospitals and bestinnovation for UAE Vision 2021”, UAE HealthWeek (8 Nov 2016): http://emirates-business.ae/medical-it-spend-in-mena-hits-3bn/
20. Healthcare Section, TASMU - Smart Qatarwebsite: http://Tasmu.gov.qa/en
21. Strategic Objective and KPI for the Ministry ofHealth, Saudi Arabia National TransformationPlan 2020 Document
22. QNeDP - Qatar National E-Health and DataProgram (30 Sep 2015):http://www.nhsq.info/app/media/3999
23. “Emirates ID can be used as health insurancecard”, Emirates 24/7 (8 Mar 2017):www.emirates247.com/news/emirates/emirates-id-can-be-used-as-health-insurance-card-2017-03-08-1.649331
24. “Experimental phase of ‘Mabrouk Mayak’service concludes”, Gulf Today (31 Jul 2017):http://gulftoday.ae/portal/349e86b5-884e-4cb9-adbd-3a19cf650970.aspx ; “Ministry ofHealth and Prevention completesExperimental Phase of ‘Mabrouk Mayak’ at AlQassimi Hospital”, Day of Dubai (30 Jul 2017)www.dayofdubai.com/news/ministry-health-prevention-completes-experimental-phase-percentE2 percent80 percent98mabrouk-mayak percentE2 percent80 percent99-al-qassimi-hospital
25. “Rashaka’ launched to combat obesity amongstudents in KSA”, Saudi Gazette (Feb 2017):http://saudigazette.com.sa/article/173865/Rashaka-launched-to-combat-obesity-among-students-in-KSA
26. “What is the UAE doing right with healthcarethat the rest of the world can learn from”,Future Health Index (24 Jan 2017):www.futurehealthindex.com/2017/01/24/uae-right-healthcare-rest-world-can-learn/
27. Healthcare Section, TASMU - Smart Qatarwebsite: http://Tasmu.gov.qa/en
28. Sports Section, TASMU - Smart Qatar website:http://Tasmu.gov.qa/en
29. UAE Innovation Strategy
30. “Dubai 100 accelerator helps health tech ontothe scale”, The National (18 Jun 2017):www.thenational.ae/business/dubai-100-accelerator-helps-health-tech-onto-the-scale-1.28507 ; “Dubai 100: the emirate launchesnew generation of health start-ups”, Vision.ae(Aug 2016): https://vision.ae/innovation-learning/Dubai-launches-new-generation-of-health-start-ups ; “Dubai 100: the new faces ofdigital health”, Vision.ae (Oct 2016):https://vision.ae/business/dubai-100-the-new-faces-of-digital-health
31. “Dubai 100 accelerator helps health tech ontothe scale”, The National (18 Jun 2017):www.thenational.ae/business/dubai-100-accelerator-helps-health-tech-onto-the-scale-1.28507; “Dubai 100: the emirate launchesnew generation of health start-ups”, Vision.ae(Aug 2016): https://vision.ae/innovation-learning/Dubai-launches-new-generation-of-health-start-ups; “Dubai 100: the new faces ofdigital health”, Vision.ae (Oct 2016):https://vision.ae/business/dubai-100-the-new-faces-of-digital-health
Deloitte | National Transformation in the Middle East | A Digital Journey
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32. “First Live London/Riyadh Hackathon SeesEnterprising Youth Start Up Tech Innovationsto Aid World Health”, PR Newswire (30 Sep2016): www.prnewswire.com/news-releases/first-live-londonriyadh-hackathon-sees-enterprising-youth-start-up-tech-innovations-to-aid-world-health-595368631.html
33. National Transformation Plan Document, SaudiArabia
34. National Transformation Plan Document, SaudiArabia
35. “‘MOH and GE Sign MoU on Digitization”,Ministry of Health (12 Oct 2016):www.moh.gov.sa/en/Ministry/MediaCenter/News/Pages/News-2016-10-12-002.aspx
36. “‘MOHAP and Purehealth to develop UAEnational health records”, Arabian Business (29Jan 2017):www.arabianindustry.com/technology/news/2017/jan/29/mohap-and-purehealth-to-develop-uae-national-health-records-5610566/
37. Industry Interviews, Ministry of Transport andCommunications (MoTC), Qatar (20 Sep 2017)
38. Gartner estimate. See: “Medical IT spend inMENA hits $3bn”, Emirates Business (2016-2017): http://emirates-business.ae/medical-it-spend-in-mena-hits-3bn/
39. “Envisioning an ICT led Approach to theNational Transformation Program for theKingdom of Saudi Arabia”, IDC (2016-2017):www.idcntpreport.com
40. “UAE Cabinet approves Dh248b federal budgetfor 2017-2021”, Gulf News (30 Oct 2016):http://gulfnews.com/news/uae/government/uae-cabinet-approves-dh248b-federal-budget-for-2017-2021-1.1921185 ; See also: UAEInnovation Strategy
41. “TPP signs first Middle East contract in Qatar”,TPP Press Release (25 July 2016):http://www.tpp-uk.com/latest-news-stories/tpp-signs-first-middle-east-contract-in-qatar
42. Gartner estimate. See: “Medical IT spend inMENA hits $3bn”, Emirates Business (2016-2017): http://emirates-business.ae/medical-it-spend-in-mena-hits-3bn/; “Health care headsfor the cloud”, The National (1 Jan 2015):https://www.thenational.ae/business/health-care-heads-for-the-cloud-1.111918
43. Mohammed Bin Rashed Smart LearningProgram website: http://smartlearning.gov.ae/
44. Institute of Public Administration in SaudiArabia website:www.ipa.edu.sa/English/Pages/index.aspx
45. “Cyber security becomes core part of UAEcurriculum”, Edarabia (April 2013):www.edarabia.com/76234/cyber-security-becomes-core-part-of-uae-curriculum/
46. “Toolkits for the Elderly | Ministry of Transportand Communications”, Ministry of Transportand Communications Qatar:www.motc.gov.qa/en/ditoolkit/older-people
47. “Microsoft, Etisalat and Education Ministry joinforces to upgrade online lessons”, TheNational (27 January 2014):www.thenational.ae/uae/education/microsoft-etisalat-and-education-ministry-join-forces-to-upgrade-online-lessons-1.316102
48. Doroob Section, EdX website:www.edx.org/school/doroob
49. The National Center for e-Learning andDistance Learning Section, Ministry ofEducation website:www.moe.gov.sa/en/TheMinistry/Education/Institutions/Pages/TheNationalCenterfore-LearningandDistanceLearning.aspx
50. “UAE launches $272m 'smart learning'initiative”, Arabian Business (10 April 2012):www.arabianbusiness.com/uae-launches-272m-smart-learning-initiative-453466.html
51. “Saudi schools to go digital by 2020”, GulfNews (30 March 2017):http://gulfnews.com/news/gulf/saudi-arabia/saudi-schools-to-go-digital-by-2020-1.2002790
52. “UAE to spend $2.72bn on education, focus onIT”, GESS Dubai website (14 August 2017):www.gessdubai.com/news-center/news/uae-spend-272bn-education-focus-it
53. Mohammed Bin Rashed Smart LearningProgram website: http://smartlearning.gov.ae/
54. “Saudi schools to go digital by 2020”, GulfNews (4 October 2017):http://gulfnews.com/news/gulf/saudi-arabia/saudi-schools-to-go-digital-by-2020-1.2002790
55. “2016 Digital Education Survey, After the bellrings: expanding the classroom”, DeloittePublicationwww2.deloitte.com/content/dam/Deloitte/us/Documents/technology-media-telecommunications/us-tmt-digital-education-survey.pdf
56. “The United Arab Emirates: Investing inEducation”, Education Business website:www.educationbusinessuk.net/features/united-arab-emirates-investing-education
57. Abu Dhabi Vision 2030 document
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59. “Sharjah Tourism Vision 2021”, SharjahCommerce and Tourism DevelopmentAuthority (accessed on 23 Sep 2017):http://beta.government.ae/en/about-the-uae/strategies-and-plans/local-governments-strategies-and-plans/sharjah-tourism-vision-2021
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62. “Five goals of Saudi Arabia’s ambitioustransformation plans”, Financial Times (10 Jun2016): www.ft.com/content/cbb86ed2-2e38-11e6-a18d-a96ab29e3c95; Saudi ArabiaNational Transformation Plan 2020 document
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64. “Dubai Culture app wins ‘Best M-GovernmentService’ Award in Tourism Sector”, Eye of Dubai(13 Feb 2015):www.eyeofdubai.net/news/details/dubai-culture-app-wins-best-m-government-service-award-in-tourism-sector
65. “Visit Abu Dhabi mobile App wins at the WorldGovernment Summit Awards”, Go Dubai (15Feb 2017):www.godubai.com/citylife/press_release_page.asp?pr=118620; “'Visit Abu Dhabi' mobile app”,Visit Abu Dhabi website (accessed on 23 Sep2017):https://visitabudhabi.ae/en/mobile.apps.aspx
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67. ““Sauditourism” App on smartphone wins BestM-Government Service Award at the Arabworld level”, Saudi Commission for Tourismand National Heritage (23 Feb 2015):www.scta.gov.sa/en/mediaCenter/News/GeneralNews/Pages/z-g-1-23-2-15.aspx
68. National Transformation Plan 2020 document,Saudi Arabia
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69. Tourism Section, TASMU - Smart Qatarwebsite: http://Tasmu.gov.qa/en
70. Transportation Section, TASMU - Smart Qatarwebsite: http://Tasmu.gov.qa/en
71. “Dubai launches scheme to turn smartphoneinto passport”, Arabian Business (7 Jun 2017):www.arabianbusiness.com/dubai-launches-scheme-turn-smartphone-into-passport-677121.html
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73. “The Impact of Technology on Dubai’s SmartCity Initiatives”, Urbanise (28 Feb 2017):https://urbanise.com/knowledge-center/articles/role-technology-impact-dubais-smart-city-initiatives/
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99. Ministry of Transport KPIs, NationalTransformation Plan 2020 Document, SaudiArabia
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105. “Global Smart Cities and Dubai’s path fordigital transformation”, Smart Dubai website(Jul 2017):http://www.smartdubai.ae/story0627.php
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114. “Uber attracts $3.5bn from Saudi PublicInvestment Fund”, BBC (2 Jun 2016):www.bbc.com/news/business-36430850
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124. “Smart move: Automated transport in theGulf”, Arabian Business (15 Oct 2016):www.arabianbusiness.com/smart-move-automated-transport-in-gulf-648982.html
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128. “AED 4.3billion Savings for Dubai Governmentfrom Smart Services over 12 years”, SmartDubai ( June 2016):www.smartdubai.ae/story0629.php
129. “Dubai Now is the app of the year”, KhaleejTimes (5 June 2016)www.khaleejtimes.com/nation/general/dubai-now-is-the-app-of-the-year
130. “Smart robots to offer 100 UAE governmentservices”, Gulf News (9 September 2017):http://gulfnews.com/news/uae/government/smart-robots-to-offer-100-uae-government-services-1.2087427
131. “New Generation E-government PortalHukoom 3 Lauched”, Internet Qatar website:www.internetqatar.com/new-generation-e-government-portal-hukoomi-3-launched/
132. Global Rankings Section, Open Barometerwebsite:http://opendatabarometer.org/2ndEdition/analysis/rankings.html
133. Dubai Data Section, Smart Dubai website:www.smartdubai.ae/dubai_data.php
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136. “Sheikh Hamdan launches Smart Dubai 2021and ‘Dubai Pulse’”, Emirates 24/7 (17 April2017):www.emirates247.com/news/government/sheikh-hamdan-launches-smart-dubai-2021-and-dubai-pulse-2017-04-17-1.651418
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139. “Gulf countries could add billions to GDP withdigital action plan”, Arabian Business (22February 2016):www.arabianbusiness.com/gulf-countries-could-add-billions-gdp-with-digital-action-plan-622496.html
140. UN E-government Survey 2016 Document:https://publicadministration.un.org/egovkb/en-us/reports/un-e-government-survey-2016
141. “Dubai Now is the app of the year”, KhaleejTimes (5 June 2016)www.khaleejtimes.com/nation/general/dubai-now-is-the-app-of-the-year
142. “Mohammad opens Enterprise Command andControl Centre”, Gulf News (4 October 2017):http://gulfnews.com/news/uae/transport/mohammad-opens-enterprise-command-and-control-centre-1.2031307
143. “Global Smart Cities and Dubai’s Path forDigital Transformation”, Smart Dubai ( July2017)” www.smartdubai.ae/story0627.php
144. “Etisalat and du open doors on smart homesin the UAE”, The National (18 October 2014):www.thenational.ae/business/etisalat-and-du-open-doors-on-smart-homes-in-the-uae-1.323003
145. “Etisalat to invest more than Dh3b in 2017”,Gulf News (4 October 2017):http://gulfnews.com/business/sectors/telecoms/etisalat-to-invest-more-than-dh3b-in-2017-ceo-says-1.1987939
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146. “Dubai's Silicon Park set for Q4 2018completion”, Construction Week Online (27February 2017):www.constructionweekonline.com/article-43226-dubais-silicon-park-set-for-q4-2018-completion/
147. “Saudi Arabia Invests US$70 Billion inEconomic Cities Project”, Cisco:www.cisco.com/c/dam/en_us/about/ac79/docs/success/Saudi_Arabian_General_Investment_Authority_SAGIA_Engagement_Snapshot.pdf
148. IESE Cities in Motion Index 2016 Document:www.iese.edu/research/pdfs/ST-0396-E.pdf
149. “School buses to get smart system devices”,Emirates 24/7 (23 June 2017):www.emirates247.com/news/emirates/school-buses-to-get-smart-system-devices-2017-06-23-1.654978
150. “Smart home systems on the rise in the UAE”,Construction Week Online (27 October 2016):www.constructionweekonline.com/article-41427-smart-home-systems-on-the-rise-in-the-uae/
151. “Recent smart city trends: empowered citizenson the rise” report, Deloitte (2015) ;“Measuring the Information Society Report2016”, ITU (2016) ; “New $350m Dubai ‘smartcity’ set for Q4 2018 completion”, ArabianBusiness (28 Feb 2017):www.arabianbusiness.com/new-350m-dubai-smart-city-set-for-q4-2018-completion-665161.html
152. “Saudi society is rigid, its youth restless. Theprince’s reforms need to succeed”, TheGuardian, 2017, See more:www.theguardian.com/world/2017/sep/02/saudi-prince-reforms-society-rigid-youth-restless
153. Official government websites and pressreleases. See: Ministry of Education website:www.moe.gov.sa/en/TheMinistry/Education/Institutions/Pages/TheNationalCenterfore-LearningandDistanceLearning.aspx;“Gov2020, Explore the Future of Government2020”, Deloitte University Press:http://government-2020.dupress.com/
154. Official government websites and pressreleases. See: Smart Dubai Roadmap:http://roadmap.smartdubai.ae/highlights.php;“Dubai Silicon Oasis Authority and Smart DubaiOffice Sign Strategic Partnership”, DSOA,(2017): www.dsoa.ae/en/news/dubai-silicon-oasis-authority-and-smart-dubai-office-sign-strategic-partnership/,“IESE Cities in Motion Index”, IESE, (2016):Smart Dubai: www.smartdubai.ae/about.php.Smart Dubai launches its developmentroadmap for artificial intelligence, Smart Dubai,(2017): www.smartdubai.ae/story0328.php,Introducing a citywide tool for quantifyinghappiness, Smart Dubai, (2014):
www.smartdubai.ae/story_one.php;“Singapore Smart Nation Smart City”,Engadget, (2016):www.engadget.com/2016/11/03/singapore-smart-nation-smart-city/;“Singapore is taking the Smart City to a wholenew level”, Wall Street Journal, (2016):www.wsj.com/articles/singapore-is-taking-the-smart-city-to-a-whole-new-level-1461550026
155. Official government website and pressreleases. See: “Mohammed reviews m-Government”, Emirates 24|7, (2015):www.emirates247.com/news/government/mohammed-reviews-m-government-2015-05-24-1.591634; “TRA launches the new cycle ofSmart Government Enabler”, (2017):www.tra.gov.ae/en/media-hub/press-releases/2017/3/28/tra-launches-the-new-cycle-of-the-smart-government-enabler.aspx;United Nations E-Government Survey,Department of Economic and Social Affairs,(2016); “UAE to introduce start rating forgovernment departments”, Gulf News, (2017):http://gulfnews.com/news/uae/general/uae-to-introduce-star-ratings-for-government-departments-1.1289766; “Delivering ondigital”, William D. Eggers, duPress
156. Official government website and pressreleases. See: The Global CompetitivenessReport 2016-2017, World Economic Forum;“RTA, Smart Dubai ink MoU for using NOL cardsmart payment model”, Zawya, (2016):www.zawya.com/mena/en/story/ZAWYA20160712065214;“RTA’s Innovation lab mulls 240 ideas toenhance employees’ happiness”, Zawya,(2017): www.mediaoffice.ae/en/media-center/news/23/7/2017/rta-innovation-lab.aspx/; “RTA Call Centre receive 1 millioncalls”, Khaleej Times, (2017):www.khaleejtimes.com/nation/dubai/rta-call-centre-receives-1-million-calls;“Mobility”, Smart Nation Singapore,https://www.smartnation.sg/apps/Mobility/page/1#1
157. Official government website and pressreleases. See: TASMU website:http://tasmu.gov.qa/en; TASMU website:http://tasmu.gov.qa/en; E-estonia: https://e-estonia.com/
158. Official government website and pressreleases. See: International Tourism, Numberof Arrivals World Bank:https://data.worldbank.org/indicator/ST.INT.ARVL; “Saudi Arabia launches digital platformsview hajj”, (2017):www.vanguardngr.com/2017/08/saudi-arabia-launches-digital-platforms-view-hajj/;“Saudi Arabia launches new tourism initiativeswithin vision,” Gulfnews, (2017):http://gulfnews.com/business/sectors/tourism/saudi-arabia-launches-new-tourism-initiatives-within-vision-2030-1.2060934
159. “Dubai government saved Dh4.3b throughsmart services”, Gulf News (28 Jun 2016):http://gulfnews.com/news/uae/government/dubai-government-saved-dh4-3b-through-smart-services-1.1854184
160. “Smart Cities - How 5G Can Help MunicipalitiesBecome Vibrant Smart Cities”, Accenture(2017): www.ctia.org/docs/default-source/default-document-library/how-5g-can-help-municipalities-become-vibrant-smart-cities-accenture.pdf
161. Monitor Deloitte research and analysis ;Huawei concept to service lab: “Building anopen and diverse ecosystem for sharedsuccess in the Middle East”, Huawei (Oct 32017): www.linkedin.com/pulse/building-open-diverse-ecosystem-shared-success-middle-charles-yang/?trackingId=csiZysQOGhsmwCMGseJfkQ%3D%3D
162. “How Can Companies Tap Into Middle East’sBillion Dollar Digital Market?”, Forbes, 2017,See more:https://www.forbesmiddleeast.com/en/how-can-companies-tap-into-middle-easts-billion-dollar-digital-market/
163. “Dubai set to be the smartest city: Dubai Plan2021”, International Quality & ProductivityCenter, 2016
164. “Mohammed bin Rashid approves DubaiAutonomous Transportation Strategy”, DubaiFuture, 2016, See more:http://www.dubaifuture.gov.ae/mohammed-bin-rashid-approves-dubai-autonomous-transportation-strategy/
165. Monitor Deloitte research and analysis;Huawei research and analysis; “Huawei’s cloudvison unfolds as it hosts annual showcase”, ITP(Sep 6 2017): www.itp.net/614562-huaweis-cloud-vison-unfolds-as-it-hosts-annual-showcase
166. Official government websites and pressreleases. See: Saudi Arabia Vision 2030 –www.vision2030.gov.sa/en; UAE Vision 2021 –www.vision2021.ae/en; Qatar Vision 2030 –http://www.mdps.gov.qa/en/qnv1/Pages/default.aspx; Kuwait vision and plans –www.newkuwait.gov.kw/en/
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Deloitte contacts
AuthorsEmmanuel DurouTMT ME Industry Leader and Partner at Monitor DeloitteDeloitte & Touche (M.E.)[email protected]
Hasan IftikharSenior Manager, TMTDeloitte & Touche (M.E.)[email protected]
Adil ParvezManager, TMT, Monitor DeloitteDeloitte & Touche (M.E.)[email protected]
Guilherme OliveiraManager, TMTDeloitte & Touche (M.E.)[email protected]
Researched and written by:Jean Louis PrevostSenior Consultant, TMT, Monitor DeloitteDeloitte & Touche (M.E.)[email protected]
Yasmeen SalahSenior Consultant, Monitor DeloitteDeloitte & Touche (M.E.)[email protected]
Laura ShuppConsultant, Monitor DeloitteDeloitte & Touche (M.E.)[email protected]
Qusay AlonaizanBusiness AnalystDeloitte & Touche (M.E.)[email protected]
ContributorsAydin AkcaPartner, Monitor DeloitteDeloitte & Touche (M.E.)[email protected]
Mounir ArissPartner, Monitor DeloitteDeloitte & Touche (M.E.)[email protected]
Muhannad TayemPartnerDeloitte & Touche (M.E.)[email protected]
Jamil HamatiSenior ManagerDeloitte & Touche (M.E.)[email protected]
Huawei contacts
Thought LeadersLi HuanSenior Vice PresidentStrategy & MarketingHuawei Technologies - Middle [email protected]
Safder NazirVice President, Digital IndustriesStrategy & MarketingHuawei Technologies - Middle [email protected]
ContributorsMuhammad Atif JamilDirector, Digital Solutions ArchitectStrategy & MarketingHuawei Technologies - Middle [email protected]
Yangsheng ZhouBusiness ArchitectStrategy & MarketingHuawei Technologies - Middle [email protected]
ReviewersRaghavendra ThalabhaktulaDirector, Digital SolutionsStrategy & MarketingHuawei Technologies - Middle [email protected]
Yasser A ElfoulyDirector, Digital SolutionsStrategy & MarketingHuawei Technologies - Middle [email protected]
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Deloitte marketing contacts
CommunicationsDeloitte & Touche (M.E.)Block D, Gefinor Center,Clemenceau Street, Beirut, [email protected]
Huawei marketing contacts
MarketingHuawei Technologies - Middle EastF4, Thuraya Tower 1,Dubai Media City, Dubai, [email protected]
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