How does the Egyptian government promote the digital economy? An analytical study by researcher Dr. Ahmed Karkit
Within the framework of the Egyptian state’s transformation to “digitalize services,” many people are wondering about this meaning, which simply indicates that digital transformation is the process that an organization applies to integrate modern technology into all areas of business, and this process changes fundamentally according to the way the organization provides value to customers, as companies adopt innovative digital technologies to make cultural and operational transformations that better align with changing customer requirements, and given the importance of this topic, which will be part of the public and private work culture in a few years.
The leading researcher, Dr. Ahmed Ibrahim Karkit, was keen to have his master’s thesis on this matter in a broader and more comprehensive sense through a research study on “the role of developing electronic services in enhancing the digital economy in Egypt.” And establishing knowledge of financial technology tools that lead to strengthening the digital economy.
The discussion and arbitration committee included Dr. Essam Mohamed El Gohary, Dr. Mohamed Hassan Tawfik, and Ph.D. Reham Ansi Abdel Aziz, Assistant Professor of Business Administration at the Delta Institute.
The study aims to analyze the role of developing electronic services in enhancing the digital economy in Egypt, and to establish knowledge of financial technology tools that lead to enhancing the digital economy and to identify the strategy of the state sectors for digital transformation, and to monitor the sectors that have adopted digital transformation policies and to conduct an analysis to assess the current situation of opportunities and challenges to determine the readiness of those sectors and institutions to support the Egyptian digital economy.
The study relied on the descriptive analytical approach by collecting and analyzing data from various sources using a field study, to provide scientific evidence that supports the study hypotheses and then its objectives or not. Accordingly, the applied study of this research will take the field study path, in order to test the hypotheses that were derived in the theoretical structure of the research. The study is conducted on a sample size of (500) five hundred individuals from employees in the Egyptian government with a digital financial specialization and digital and administrative transformation in the following ministries: "Communications and Information Technology – Trade and Industry – Social Solidarity – Justice – Transportation – Electricity and Renewable Energy – Aviation – Tourism and Antiquities – Military production – Agriculture and land reclamation – Manpower – Culture – Health – Supply and internal trade – Education – Petroleum and mineral wealth – Housing and utilities – Administrative development – Cabinet – Endowments.
The results of the study showed that there is a statistically significant relationship between the development of e-government services and the promotion of the digital economy in Egypt, through the following dimensions (availability of financial technology, networks, infrastructure, information systems, human resources). The study recommends the necessity of adopting government policies that support the development of electronic and financial government services and the development of technological infrastructure, in addition to encouraging cooperation between the public and private sectors to achieve integration in the provision of electronic services. It also stresses the importance of raising citizens’ awareness of the importance of these services and how to use them to achieve maximum benefit from them in promoting the digital economy and sustainable development in Egypt.
The study proved that there is a statistically significant relationship between the adoption of financial technology tools and their contribution to promoting the digital economy in Egypt. However, the success of the e-government experience depends on facing the existing challenges and obstacles.
There is also a statistically significant relationship between the application of e-government services and the promotion of the digital economy, through multiple dimensions such as the availability of financial technology, networks, infrastructure, information systems, and human resources.
The technological and digital transformation contributed to improving the level of insurance services during the global pandemic crisis, “Corona.” 78% of executives acknowledged the importance of financial technology in improving the experiences of employees and citizens.
The results of the study indicate that 50% of the study sample have a higher qualification, 32% have a master’s degree, and 17% have a doctorate degree, which reflects the state’s orientation towards institutional excellence and interest in the scientific advancement of the administrative apparatus.
The results showed that 42% of the study sample have practical experience from 5 to 15 years, 38% have experience of more than 15 years, while 20% have experience of less than 5 years. This shows the state’s trend in rationalizing new appointments in various ministries.
The results confirmed that 48% of the study sample indicated that the application of technology began less than 3 years ago, 36% 3 to 5 years ago, and 16% more than 5 years ago.
The application of technological and digital transformation contributes to building a unified standard shared by all ministries and agencies in the administrative apparatus, which ensures the achievement of goals and the unification of common concepts.
Investing in financial technology contributes to facilitating administrative procedures and processes and raising their quality to reach the stage of digital maturity, which saves time and effort, reduces costs, and achieves greater flexibility and efficiency.
Developing platforms and changing the organizational structure in government institutions requires significant time and financial resources, and long-term strategic plans must be developed to build organizational capabilities.
The transformation contributes Technology and digital technologies support decision-making and achieve comprehensive quality, which improves operational efficiency and creates opportunities to provide innovative services.
The activation of the Anti-Cybercrime Law enhances digital transformation and the expansion of the use of electronic payment tools, which contributes to improving the level of insurance services.
One of the most prominent challenges is developing clear plans for technological and digital transformation, as this requires strategies from the Ministry of Communications and the transition to a digital economy, considering that implementing digital business may be costly and technically difficult.
It also enhances innovation through institutional cooperation that should encourage employees to work together and explore new ideas, although the current culture in some institutions may hinder this cooperation.
The decline in the value of the currency against the dollar represents a major challenge facing the communications and information technology sector and other economic sectors, which affects the cost of services and products.
The results reflect positive trends in the study sample towards Developing government and financial services, with a strong awareness of the importance of infrastructure, networks, human resources, information systems and financial technology in enhancing the digital economy, as well as the relative importance and high agreement rates in awareness of the importance of these factors in improving institutional performance and supporting digital economic growth in Egypt.
