The Covid-19 pandemic has further highlighted the need to bridge the digital divide, as 3.7 billion people now live without basic internet connectivity, experts say.
The health crisis has exposed the structural weaknesses in the global digital inclusion agenda, bringing to the fore increasing inequalities between and within the countries, according to experts at an online panel discussion at the World Economic Forum’s Global Technology Governance Summit.
“In the past months, we have witnessed the essential role that access to good connectivity and digital services play during a crisis situation,” Bocar Ba, chief executive of the South Asia, Middle East and North Africa (Samena) Telecommunications Council, said.
“Nearly 47 per cent of the world population is still excluded from connectivity and this exclusion accelerated during the crisis … Covid-19 is not likely the last crisis and more could come … this is a new normal that relies heavily on technology.”
The coronavirus pandemic forced countries last year to impose widespread movement restrictions and prompted offices and schools to transition to remote working. However, the outbreak also exposed the steep digital divide between the countries, as those with poor connectivity lagged behind developed ones.
In the developed countries, the internet penetration rate is 87 per cent but just 47 per cent in developing countries and 19 per cent in the least developed countries, according to a report by the International Telecommunication Union.
Samena estimated that an investment of $428 billion is required to connect those without internet.
“The digital participation gap that we are trying to fulfil requires investment and no one group or entity can possibly meet the requirement [alone] … if we don't act promptly enough, digital gaps may take on other, more challenging forms,” said Mr Ba.
It is important to identify existing digital gaps and be vocal about their impact if left unattended, panellists said.
The pandemic has shown the significance of digital inclusion and technologies, S Iswaran, Singapore’s Minister of Communications and Information, told the panel.
“This is important not only from the point of view of strengthening our resilience against the pandemic but also for having a strong foundation for our post-pandemic recovery.”
“The digital divide is a global challenge that we must take seriously … as seriously as we take the challenge that digitalisation poses to our competitiveness from an economic point of view,” Mr Iswaran said.
Industry experts said if the countries want to reap the future dividends of a digital economy, they have to ensure that “digital divide is at least minimised, if not eliminated”.
“Digital divide manifests urban and rural divide, developed and developing countries divide … and also [the divide] within the developed countries,” Mr Iswaran said.
In the US, nearly 97 per cent of people in urban areas have access to a high-speed, fixed-line internet service. In rural areas, that number falls to 65 per cent and on tribal lands to 60 per cent, according to the Federal Communications Commission, an independent agency of the US government.
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The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
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The Bio
Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
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The past winners
2009 - Sebastian Vettel (Red Bull)
2010 - Sebastian Vettel (Red Bull)
2011 - Lewis Hamilton (McLaren)
2012 - Kimi Raikkonen (Lotus)
2013 - Sebastian Vettel (Red Bull)
2014 - Lewis Hamilton (Mercedes)
2015 - Nico Rosberg (Mercedes)
2016 - Lewis Hamilton (Mercedes)
2017 - Valtteri Bottas (Mercedes)
Match info
Liverpool 3
Hoedt (10' og), Matip (21'), Salah (45 3')
Southampton 0
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
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- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Company profile
Name: Thndr
Started: October 2020
Founders: Ahmad Hammouda and Seif Amr
Based: Cairo, Egypt
Sector: FinTech
Initial investment: pre-seed of $800,000
Funding stage: series A; $20 million
Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC, Rabacap and MSA Capital