THE DIGITAL ECONOMY AND ITS IMPACT ON SUSTAINABLE ECONOMIC GROWTH: EVIDENCE FROM THE UNITED ARAB EMIRATES AS A MODEL FOR EMERGING ECONOMIES
Keywords:
AI, UAE, innovation, sustainable growth, digital transformation, digital economy, economic developmentAbstract
Global economic systems have changed as a result of the quick development of digital technology, which have also opened up new avenues for long-term economic expansion. Because it makes it possible for companies and governments to use cutting-edge technologies like artificial intelligence, financial technology, big data, and digital platforms, the digital economy has emerged as a crucial force behind innovation, productivity, entrepreneurship, and competitiveness. Using the United Arab Emirates (UAE) as an example of an emerging country that has effectively included digital transformation into its national development strategy, this study investigates the effects of the digital economy on sustainable economic growth.
The study uses a qualitative research approach based on secondary data analysis, which includes scholarly literature, government plans, and international reports. The results show that the UAE has made major contributions to economic diversification, increased corporate efficiency, and improved global competitiveness through its investments in digital infrastructure, artificial intelligence, smart government programs, and innovation ecosystems. However, issues with digital skill development, cybersecurity, and technological inclusiveness continue to be significant factors.
The study comes to the conclusion that digital transformation is a strategic economic tool that promotes sustainable growth in addition to being a technological advancement. The UAE's experience shows that robust governance, human capital investment, and ongoing innovation are necessary for successful digital economy.
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