Even before the pandemic, the Middle East demanded lots of highly qualified software development talents. As the pandemic began and businesses called for digitization, the demand rose even higher.
Impact of COVID-19 on digitization in the Middle East
The COVID-19 pandemic has altered the way UAE consumers shop and pay and has boosted their dependence on and fondness for online shopping. In the UAE, a survey by Visa claims that 49% of interviewed consumers shop online more since the beginning of the pandemic, and 61% of these consumers now use digital wallets and cards more often than cash on delivery.
43% of consumers say they will keep using contactless payments post-pandemic, and 48% say they’ll choose to make digital payments online over paying cash on delivery for future eCommerce purchases.
During the pandemic, UAE consumers moved to online shopping to purchase essential goods and to access products from retailers whose stores closed when restrictions were imposed. Studies also note an accelerated switch to eCommerce and the adoption of cashless payment options during the COVID-19 pandemic compared to pre-pandemic times.
Middle East Software Development
SOURCE: VISA
To businesses, these statistics point to the growing need for digitization. Sellers, aware of increasing demand, have strengthened their digital presence, and the pandemic has driven the acquisition of eCommerce platforms according to Visa’s 2020 Report. For instance, in Saudi Arabia, 38% of eCommerce platforms were acquired due to the COVID-19 crisis.
Middle East Software Development
SOURCE: VISA
However, there are a couple of challenges that companies face on the way to digitization.
Software development for MENA region: Major challenges
The first major challenge that is constantly talked about is the lack of software developers in the MENA region.
Global publications like CIO have been discussing this issue for a while. Cristina Lago writes that the Middle East’s business and tech landscape is growing. However, a shortage of educational options in fields connected to IT and a proclivity for traditional occupations contribute to a widening skills gap.
The MENA region is experiencing a lack of talent alongside high youth unemployment rates, as the demand for skilled workers surpasses the supply.
Despite the MENA region having one of the youngest populations in the world, lots of young workers don’t have the required medium- and high-level skills. The youth unemployment rate reaches 28.2% in the Middle East and 30.5% in North Africa according to the International Labour Organisation.
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