At GITEX GLOBAL 2024, Huawei unveiled a significant report titled “The Digital Dividend – ICT Maturity Fuels Economic Growth,” which explores the profound impact of digital transformation on global economic growth. The report emphasizes that as our physical and digital worlds become increasingly interconnected—driven by advancements in artificial intelligence (AI), 5G-A, and cloud computing—we are witnessing a new era known as the Fourth Industrial Revolution. This convergence is set to contribute to an astounding 70% of total global economic growth over the next five years.
The report outlines how smart cities, enhanced by digital technologies, are optimising energy usage, while AI-powered medical diagnostics are reshaping healthcare systems. Recognising these transformative opportunities, over 170 nations have developed national strategies aimed at fostering AI-driven digital transformation.
Historically, the link between technological advancement and economic prosperity has been well established. From the steam engine to the assembly line, each industrial revolution has reshaped economies. However, the current digital revolution is characterised by a rapid pace of innovation, fundamentally altering how companies operate.
Huawei’s report introduces the Global Digitalization Index (GDI), developed in partnership with IDC, to assess the progress of digital transformation across 77 countries, accounting for 93% of global GDP and 80% of the world’s population. The GDI categorises countries into three clusters: Frontrunners, Adopters, and Starters, each representing different stages of digital maturity. Frontrunners like the USA, China, and Singapore excel in connectivity and digital infrastructure, while countries such as Spain and Malaysia are quickly expanding their digital capabilities, and Starters like Vietnam are laying the groundwork for their digital futures.
A notable finding from the report is the widening investment gap in digital infrastructure. Between 2019 and 2023, the investment growth ratio among Frontrunners, Adopters, and Starters stood at 18:3:1. Research indicates that for every $1 invested in digital transformation, there is an estimated $8.30 return for a nation’s digital economy.
The report highlights the “digital dividend effect,” revealing that for Frontrunner countries, each point increase in the GDI score correlates with a $945 increase in GDP per capita. This economic impact is 2.1 times greater for Adopters and 5.4 times greater for Starters. Mature digital economies foster ecosystems where technologies interoperate, amplifying value and driving innovation through intelligent data utilisation.
Huawei cited the Port of Tianjin in China as a prime example, where the integration of 5G, cloud, AI, and green energy has reduced container transshipment time by 50% while cutting energy consumption by 17%.
To close the gap, the report urges Starter and Adopter nations to accelerate their digital transformation efforts. This includes enhancing connectivity infrastructure and investing in digital foundations such as data centres and cloud services.
As the digital economy evolves, emerging technologies like quantum computing are poised to further magnify the digital dividend effect. The decisions made today regarding digital investment will shape the economic trajectories of nations for years to come. Huawei’s findings underscore the importance of digital maturity in unlocking economic potential, presenting both challenges and opportunities in the pursuit of a more interconnected global economy.
