SUMMARY AND KEY FINDINGS

This policy brief accompanied discussions at the regional workshop “Integrating digital tools and solutions into MENA IPA activities”, organised on 14 October 2021 by the EU-OECD Programme on 
Investment in the Mediterranean1, in collaboration with the OECD IPA Network. The workshop gathered IPA practitioners from MENA and peer countries (including Estonia, the United Kingdom and Dubai, UAE) to share specific digital practices and tools adopted, as well as challenges and opportunities faced by IPAs in digitalising activities. This brief sets out points for discussion, drawing on the results of the OECD Survey on Investment Promotion & Digitalisation. The survey was completed online by IPAs from Egypt, Jordan, Morocco, Palestine, Libya and Tunisia2 in summer 2021, as well as by IPAs from 36 OECD countries for comparative analysis. The brief was updated after the workshop to incorporate key points shared by MENA and peer IPAs.

Notable findings from the survey and interactive discussions between MENA and peer IPAs include:

• Many MENA IPAs use, and have recently expanded, digital tools to support investors throughout the investment process, from investment promotion (i.e. targeting and attracting 
  investors) to investment facilitation (i.e. supporting entry of operations); some have also introduced tools to provide aftercare services following project establishment. MENA IPAs use 
  digital tools for internal processes, but noted that maintaining consistent use for customer relationship management is a challenge.
• MENA IPAs seem to use digital tools for a wider range of activities than OECD agencies. This may reflect advancements to ease administrative procedures for investors in jurisdictions where steps to invest can be lengthy and cumbersome. Compared to OECD countries, a greater proportion of MENA economies have digitised most procedures to invest and set up a business.
• The types of digital tools MENA IPAs offer are not always technologically complex; though hightech solutions are not necessarily required to support investors. There is also wide variation in the digital skills of MENA IPAs, reflecting in part their different national digital advancements.
• The COVID-19 pandemic accelerated a digital shift for IPAs. All MENA agencies said that they increased their use of digital tools during the crisis, and all reported that they plan to extend their use of digital tools and processes in the future, including to showcase potential opportunities and to ease procedures for investors. Expanding digitalisation is in turn prompting MENA IPAs to reassess their strategies and the nature of services offered.
• Realising these digital shifts will require resources and wider political support. Most MENA agencies said that the greatest challenges to integrating digital tools are changing corporate culture and coordinating with other government agencies. Peer agencies at the workshop noted the importance of educating staff on the benefits of digital tools, and securing political support for digitalisation.
• MENA and peer IPAs agreed that while the pandemic rendered digital tools essential, these tools cannot replace all IPA activities. Digitalisation can provide opportunities for IPAs to reach more investors, and conduct operations more efficiently. But adopting digital tools also has costs, and requires strategy on where tools can be most effective.