The Impact of Digital Financial Technology on Enhancing Financial Inclusion and Achieving Economic Stability in Arab Countries (An Econometric Study Using Panel ARDL Data for the Period 2011–2021)

Abstract

This research paper aims to estimate the impact of the use of digital financial technology on financial inclusion and the achievement of economic stability in Arab countries during the period (2011–2021). The study sample included eighteen Arab countries, and the Panel ARDL cross-sectional time-series analysis was applied. The study found that the use of the Internet in financial transactions has a positive effect on financial inclusion in Arab countries, with the Gulf Cooperation Council (GCC) countries generally leading the Arab region. Likewise, the use of automated teller machines (ATMs) has a positive and statistically significant effect on financial inclusion, as the number of users of these machines has increased in most Arab countries. Kuwait recorded 81 ATMs per 100,000 inhabitants, followed by Saudi Arabia with 62 ATMs, Qatar with 52 ATMs, and the United Arab Emirates with 51 ATMs per 100,000 inhabitants. At the bottom of the list are Mauritania, Iraq, Sudan, and the Comoros.