Digital tokens could transform the economies of the Middle East and North Africa

March 24th, 2021 – The Covid-19 pandemic has been a disruptor like no other and its economic and social consequences are expected to outlast the health emergency.

As reported by the IMF, the Middle East and North Africa GDP contracted by 3.1% in 2020, putting the region’s already fragile resilience under pressure. Governments have taken unprecedented fiscal efforts to protect their private sectors and to mitigate the consequences of the pandemic.

Some examples are the $27 billion stimulus plan that the United Arab Emirates has deployed to facilitate lending, the $61 billion support package targeting the private sector or Egypt’s $6 billion economic relief plan focusing on Small and Medium Enterprises (SMEs) and consumer liquidity.

In this context, the World Economic Forum’s Regional Action Group on the Middle East and North Africa, a community of over 70 leaders from private and public sectors, has been working under the guiding framework of the 7 Principles for Stakeholder Capitalism to develop ideas that could tangibly transform the post-pandemic future of the region.

Small and Medium Enterprises (SMEs) have been severely affected by the pandemic both on the supply and on the demand side. The substantial loss of revenue, coupled with a drastic drop in capacity, has dramatically affected their ability to function properly and has created a large liquidity shortage for their operations, meaning many SMEs face closure.

More…https://www.weforum.org/agenda/2021/03/digital-tokens-could-transform-the-economies-of-the-middle-east-and-north-africa/

Written by World Economic Forum
Photo: Entrepreneur

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