Chapter 10 of the new Unified Arab Economic Report (2025) examines the vital role of digital technologies in achieving industrial growth within Arab countries, emphasizing how the Fourth Industrial Revolution has fundamentally transformed the global economy and the production landscape. The chapter notes that industrial revolutions have always been closely tied to economic prosperity, as each stage of technological advancement has led to higher productivity and rising per capita income. The First Industrial Revolution started from 1750 to 1850 marked the rise of mechanization through steam power, transforming textile and manufacturing industries. The Second Industrial Revolution launched in 1850 to 1914 was driven by electricity, steel, and mass production, ushering in rapid industrial expansion. The Third Industrial Revolution started in 1945 until 2010 introduced computers, electronics, information technology, and the internet laying the groundwork for automation and the digital era. In the case of the Fourth Industrial Revolution, digital technologies are not merely tools of automation but rather agents of deep transformation, altering the very structure of industries and economies. They have created interconnected systems that facilitate rapid innovation and adaptive production, allowing firms to integrate smart technologies into all stages of manufacturing and service delivery. Consequently, digitalization is now viewed as a core driver of sustainable industrial growth and competitiveness in Arab economies.
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The Role of Digital Technologies in Achieving Industrial Growth in Arab Countries