The Middle East’s interest in digital tools that fall under the umbrella of the 4th Industrial Revolution has been gradually increasing and the energy stakeholders not investing in digitalisation are fast becoming outliers, according to Badar Chaudhry, senior vice-president, sector head – energy, Mashreq Bank
According to him, there’s a high volume sum of US$2.6 trillion that can be unlocked via digitalisation in the Middle East and North Africa (MENA) by 2025. That volume has identified key functional areas of certain industry sectors for digital transformation, and correlated digital tools befitting transformation requirements of those functions.
Oil prices continue to increase in the US$50s per barrel range, and the report of the International Energy Agency published that at least US$1bn must be spent per year in the near-term to create an environmentally friendly energy economy. IMF too reproaches ‘long and difficult ascent’ are being squeezed up during the global COVID-19 pandemic. It is very realistic particularly to the countries restricted with travel and is facing a downturn movement on their economics and operational norms during the lockdown situation.
So, now it is a bounce-back strategy to invest in digitalisation to hit the stuck-up condition due to pandemics. Of course, the integration of digital technologies with functional areas will bring metamorphosis in the process of conducting business operations with the ultimate objective of improving stakeholders’ relationships and experience management. Lots of companies face the unpredictability of the COVID-19 situation and it drags many energy companies on a level playing field in the Middle East and beyond.
Conducting experiments with digital technologies to assess suitability vis-à-vis the specificities of the needs of business and its stakeholders is the ultimate objective for lots of companies of incremental contributions for-profit and profitability. So, they are taking a walk into the stage of the digital revolution with the latest technologies. Like Dammam 7, a new supercomputer, launched by Saudi Aramco. That means digitalisation is getting focused by Saudi Arabia and the broader MENA.
ADNOC has saved US$2bn over the past five years by adopting advanced technologies and the digital aura of digitalisation. Petroleum Development Oman (PDO) has concluded its information management digital transformation journey with Hexagon.
However, given that cyber threats are a challenge of digital transformation, Chaudhry reiterated that cybersecurity is a must-do thing to adopt for maintaining companies’ cyber walls and also to prevent companies from cyber attacks.
