Information and Communication Technology as a Resource for Revitalising the Arab World Economy in the Modern Digital Era

In the modern digital era, Information and Communication Technology (ICT) has become a core driver of economic prosperity. Therefore, this study examines the role and impact of ICT in enhancing the GDP per capita while controlling for inflation and Foreign Direct Investment (FDI) in the context of Arab countries from 2012 to 2021. We utilized a two-step system Generalized Method of Moments (GMM) to analyse dynamic panel data in both the short and long run. The findings of this research suggest that, apart from the number of mobile cellular subscriptions, other ICT indicators such as the number of individuals using the Internet and the quantity of fixed telephone lines have made significant contributions to GDP per capita. Notably, in both the short and long term, fixed telephone lines have shown a strong positive effect on GDP per capita in Arab countries. Therefore, a crucial policy priority should be the long-term development and maintenance of ICT infrastructure to enhance GDP per capita and mitigate the negative effects of macroeconomic crises, such as those caused by the closure of the economy due to COVID-19.