Title: Digital Transformation and Its Impact on Economic Stability in the Arab World (2010-2025) An Analytical Study
Authors: Dr. HOWYDA ELTAHIR HASSAN TAHA and Dr. ABDELRAHMAN MANOFAL GORASHI MUSA
Volume: 9
Issue: 12
Pages: 125-153
Publication Date: 2025/12/28
Abstract:
This paper aims to analyze the impact of digital transformation on economic stability in the Arab world during the period (2010-2025), in light of rapid technological changes and the economic challenges facing Arab countries. The study adopts a descriptive-analytical approach, relying on a review of economic literature and official Arab reports issued by regional organizations and central banks, in addition to analyzing selected country experiences. The findings indicate that digital transformation has contributed significantly to enhancing economic stability by supporting economic growth, improving public finance efficiency, strengthening financial stability, and expanding financial inclusion, particularly in countries that adopted comprehensive digital strategies supported by institutional reforms. However, the study also reveals several challenges that limit the full benefits of digital transformation, including the digital divide, weak digital infrastructure in some countries, shortages in digital skills, and rising cybersecurity risks. Moreover, the results show that the impact of digital transformation on labor markets and social development has been dual in nature. While it created new employment opportunities and improved access to services, it also placed pressure on certain groups due to changes in the structure of labor demand. The paper concludes that digital transformation, if effectively managed within integrated economic and social policies, can serve as a key pillar for achieving economic stability and sustainable development in the Arab world.