Rethinking Economic Development in Muslim Societies in the Context of the Fourth Industrial Revolution

Abstract

Economic development is a process of structural transformation not only involves productivity growth, but also improvement in the quality of life. In most developing countries, including Muslims, economic productivity remains low to foster growth and meet the challenges of the 21st century. The new economy, driven by the Fourth Industrial Revolution, underscores the importance of investment in human capital, knowledge creation and innovation so that to increase competitiveness and deepen integration in the global markets. Digitization facilitates connectivity and enhances the country capabilities to gain access to technology and skills needed for promoting innovation and diversifying output. Rethinking development requires adapting new strategies for development to support labor market flexibility and strengthen digital readiness.

With the exception of a few countries, economic productivity in the Muslim world remains low to foster rapid growth and catch up with the rest of the world. In Muslim countries, economic development is driven by traditional sectors, mainly agriculture, with little contribution of manufacturing production. The Fourth Industrial Revolution requires investment in digital technologies, artificial intelligence, nanotechnology, green energy and robotics to increase the country innovative capabilities and diversify output. The Muslim world should rethink development to develop strategies that strengthen connectivity, collaboration, technological learning and digitization. The aim of this paper is to highlight the importance of knowledge and technology for economic development in Muslim countries. The paper focuses on the challenges facing Muslim countries in the 21st century and benefit from the Fourth Industrial Revolution.