Can AI help emerging economies leapfrog into the future of global trade? In this special episode of Below the Fold—recorded live at the Dubai AI Festival—Dr. Nora Dihel, Senior Trade Economist, explains how AI is transforming international trade, supply chains, and development models. From digitizing border processes to reshaping value chains, AI presents enormous opportunities—especially for developing countries. But infrastructure, regulation, and digital skills still stand in the way.
🎙️ Topics include:
Why AI won’t disrupt trade alone—geopolitics will
In collaboration with Date With Tech, Launch Foundry // AI Product Studio, Trescon, and the Dubai AI Festival at DIFC Innovation Hub.
[00:00:00]
Hi, ~ ~ this is Date With Tech, an association with Trescon, Launch Foundry, and Below the Fold. And I have the pleasure of being joined by Dr. Nora Dihel. ~ ~Dr. Nora Dihel. Sorry. ~ ~I botcher your name. I was trying not to, ~ ~ but, ~ ~ you didn't. I didn't. It's perfect. It's fine. It's fine.
Alright. Dr. Nora Dihel, senior Trade Economist. ~ ~we're here to talk about. ~ ~how AI is reshaping digital economies. And, ~ ~ and we are here, by the way, at the Dubai AI Festival. ~ ~by the way, ~ ~ we've set up a, a podcast t which is pretty exciting. ~ ~and,~ ~ we're lucky to be interviewing some of the, ~ ~ leaders in industry.
~ ~and yeah, I mean, I'm, I'm very excited to have you on this show, Dr. Nora or Nora. ~ ~and let's get started with, with some of the points that we want to talk about. The first one is, how is digital trade transforming,~ ~ global [00:01:00] value chains, particularly for emerging and developing economies? I. So first of all, really great to be here.
Really great to be part of your podcast, and I absolutely love the energy at the AI Dubai Festival, so it's wonderful to be here. ~ ~and AI is becoming increasingly important in my area. Yeah. Which is, ~ ~ trade, international trade. When we talk about trading goods and trading services, and of course the global value chains, which you ask because AI has the capacity to really transform how the value chains are being organized.
And this is also extremely important for the developing countries. I work a lot on developing countries. Yeah. And this means it means a lot for them. Yeah. And so we can look at some of the main, ~ ~elements that can have an impact on those global value chains. Yeah. And the first is that, ~ ~ many [00:02:00] services will become more accessible through ai.
So think about farmers in Kenya would be able to access certain technology related, ~ ~Inputs, which are needed for farming. Mm-hmm. And this can ma make farming more efficient and then they, it can facilitate their participation in value chains. Right. That was not accessible a few, ~ ~ years ago. ~ ~it can help, ~ ~small and micro-enterprises to become part of those value chains.
So just by making services more acce, ~ ~ accessible, ~ ~ we also know that. It's not only the good that is being sold. Yes. So think about, ~ ~garments produced in Bangladesh. It's also the whole value added that's embedded in that good, for instance, design. Yeah. Or for instance, ~ ~ how, how is it being transported?
So, and all these are being, make [00:03:00] more, ~ ~accessible, more efficient through access to AI and to different types of technologies. AI has also an important role in making these supply chains more efficient. So I worked quite a bit on trade facilitation and usage of AI in cross-border processes. So by by, by doing that, we can not only reduce some of the trading costs across borders, but we can make them also more rapid.
So, ~ ~it's, it's really increasing efficiency. So just some examples, you know, on how AI can transform global value chains, and most importantly, the, the positive impact it can have on developing countries. But I have to say. Certain fundamentals need to be in place for that to happen. So we need access to that type of technology.
We need the adequate infrastructure. Mm-hmm. We need skills to be able to, to, to use ai, and then we also need an [00:04:00] appropriate regulatory framework in place. Right. Yeah. I, I can see how supply could, could be boosted for farmers using AI to better, I guess harvest, for example, some of their crops. ~ ~but yeah.
I agree. Perhaps there needs to be the right education in place so that the, ~ ~ the way to use AI is accessible for everyone, not just for big enterprises, perhaps also for medium and small enterprises and businesses. Absolutely, absolutely. And that's why this educational programs are very important. And actually there are also talks about including AI in the, ~ ~curricular of schools.
So. Yeah, we, we should learn it as kids. So, so I would love to hear more about, ~ ~from your time working across continents, how do perspectives on digital trade and AI differ defer between regions? So are you seeing perhaps some regions, ~ ~incorporate AI in curriculums, ~ ~ and, and education, ~ ~establishments and institutions more than [00:05:00] others? ~ ~not necessarily in education. So I would think about AI more broadly. Yeah. You know, on how countries approach access to ai. Yeah. And if I start with Europe, I would say that there is a big emphasis on privacy. Mm-hmm. Yes. In, in, in Europe. And so we have the, the general data protection regulation, which is a great example in Europe because it also protects consumers, so you have to give consent, you know, whenever you, you are using that.
If we move then to Asia, what we see, it's a more pragmatic approach. There is a lot of emphasis on building the necessary infrastructures. ~ ~making sure that more people get access to technology and ai, and it doesn't mean that privacy is not important, but it's, it's, it's, it, ~ ~ it's just, ~ ~it's a bit easier.
It's, it's, it's, yeah. It's, it's so, so the emphasis is on different Yeah. ~ ~aspects. Yeah. And then [00:06:00] if we. Move to Africa. Yeah. There is a very strong development angle there. Yeah. There is a lot of talk about how to leapfrog, ~ ~ legacy infrastructure. Yeah. How to make sure that, ~ ~AI becomes accessible in fundamental sectors such as health and education.
Yeah. So the development angle is very, very strong here. Mm-hmm. And then you can imagine all these different positions can have a. Can have an impact on how, ~ ~ negotiations on various AI related regulations are being undertaken. Right. You know, coming from, from, from all these different angles. Yeah. ~ ~what do you think are the biggest opportunities you see for countries to leapfrog traditional development models via ai?
So you mentioned Africa, ~ ~ being one of them. Yes. So, ~ ~you know, if we think about the traditional model, so development was, ~ ~really focused on building infrastructure, [00:07:00] then industrializing moving out of agriculture into services. So now with technology and with ai, we don't have to go through all these phases.
You can. Build, you can, ~ ~ become, you can develop services in parallel with manufacturing. You can create more value added in manufacturing immediately, so you don't have to go through, through, through those stages. And, ~ ~ if, if, I think also from a trade perspective, I just. See tremendous results from the use of AI in trade facilitation.
I think I already mentioned that this can make trade flows less costly and more rapid. And of course it can help with, ~ ~increased trade participation, increased participation in global value chains, which has big impacts on developments. Okay, fantastic. ~ ~and how do you think in [00:08:00] international trade form frameworks better support digital inclusion and equitable access to technology?
So, that's a very good question because there is a lot of emphasis on, ~ ~ trade agreements, on trade agreements covering goods, and I think it's time to, ~ ~ look more closely at services. So, so, so first of all, to look at. Trade trading services and especially look at digital aspects. Mm-hmm. So I like to bring the example of the digital economy partnership agreement, which is.
Pioneered by, ~ ~ Singapore, Chile, and New Zealand, and it, ~ ~went into force in 2021. So this is really an agreement that it makes it unique because it's not about traditional goods or tariffs, it's really about setting common rules. For how countries can collaborate digitally. Mm-hmm. And, ~ ~it's [00:09:00] also a very dynamic, so it's not like a static agreement, it's more like a process.
For instance, South Korea joined in 2023 and it's open to other countries to join as well. And we, if you look at some of the provisions, so we, we, we are looking at, ~ ~e-commerce, at digital identities, at FinTech, how to regulate cross border data flows, how to regulate ai, ~ ~ how to, to, to, to, to make it safe and ~ ~It's really about the appropriate regulatory framework for digital services. And I think this is a very good example on how we can tackle or, ~ ~ these, ~ ~digital issues on a cross-border basis and how we can also incorporate such elements into any other trade agreements that countries are negotiating at the.
Bilateral, regional, or also multilateral levels. Excellent. ~ ~and what role can regulatory [00:10:00] sandboxes play in enabling safe, ~ ~ and inclusive innovation? So that's, it's a, it's a very good point. Yeah. I, I, I really love sandboxes. Mm-hmm. And usually we think about them as being just, ~ ~ tech friendly regulation, but I think it's much more mm-hmm.
Because this, I, I think these are very powerful tools for public private learning space. So it's a good opportunity to exchange information in a safe space and to make sure that we create the, the, the adequate Yeah. Regulations. Yeah. And you also have the private sector input. Yeah. So it's a safe space, space where you can experiment with different, ~ ~regulatory measures before rolling them out on a more larger, broader scale. Yeah, yeah. And, and it's not something that stalls, I guess, the development. No, I, no, no, it actually [00:11:00] helps. It's so, so we are experimenting there, you know, so it's not a rigid framework. Right. So that's why I'm, I also call it a safe space.
Yeah. And a great opportunity to, to, to, ~ ~for partnership between private and public sector. Awesome. ~ ~we have a couple more questions. Okay. ~ ~so do you think current global trade policies are adapting fast enough to the scale and speed of AI driven disruption? Things are moving very quickly. Yes.
And are we, and so are we moving at the right speed, ~ ~ to make the most of, of this ai ~ ~disruption? Well, I think, ~ ~Governments are becoming increasingly aware that it's absolutely necessary to, to, ~ ~ incorporate digital related issues and AI in trade agreements. Yeah. And we see progress in this area.
I do not know if it is fast enough, but definitely we see progress. [00:12:00] Yeah. In this area there is. Increased interest also from countries to get guidance on how to do it. Yeah. ~ ~but, ~ ~ there is room, there is room for, for, for more Absolutely. There's room for more, which is, which is exciting. Which is, makes it even more exciting.
Yeah. Yes, yes. ~ ~I have a couple of quick fire. Okay. Closing question. ~ ~Three, actually, the first one is, what's one policy trend you think we'll be taking about? We'll be talking about a lot more next year.
A policy trend. Yeah. ~ ~well, definitely ai. Ai, yeah, definitely ai. Yeah. So definitely ai. AI is a trend that's here to stay for years to come. Yes, and we will probably focus on different aspects. Related to ai? Yes. Is it more access? Is it perhaps safety related issues? Is it sovereignty? So, ~ ~but definitely AI is, is, is here to stay.
[00:13:00] Okay.~ ~next one. If you could fix one bottleneck in digital trade today, what would it be? Skills. Skills, I think we have to focus quite a bit on on skills. Skills at what level? At what? ~ ~for like even basic skills. Yeah, even basic skills. Yeah. So, because when we are talking about skills, of course we have basic and specialized skills.
Yeah. But even basic skills, and especially looking at it from a developing country angle. Yeah. ~ ~in. Looking at how AI can, ~ ~ facilitate the development process. Yeah, I think, ~ ~ the necessary skills and information about ai Yeah. Is fundamental for, for for what stakeholders? Everyone. I suppose everyone.
I think it's true for everyone. It's true for,~ ~ private sector, for the public sector. ~ ~it's for the end consumer. End user. Absolutely. [00:14:00] Yeah. And that's why perhaps we should start in schools. Yeah, I think we should start, we should start teaching AI in schools as soon as possible. Yeah. ~ ~finish this sentence.
This is the last one. Oh, wow. It's pretty interesting. It's a pretty interesting one. That's cool. This is why it's the last one. ~ ~finish this sentence. The future of global trade will be powered by
geopolitics. Geopolitics. Yeah. Interesting. Yeah, I was, I was hoping that you wouldn't say ai, that would've been a little bit, ~ ~ cheesy. ~ ~but at the end of the day, yeah, if we look at the current, ~ ~ global context, yeah. I think it's clear that, ~ ~ geopolitical issues are extremely important. Yeah. Yeah.
Yeah. So, ~um, ~and, and yeah, I mean, regardless of what technology, ~ ~comes into play. I guess at the end of the day, it's about, ~ ~ what, what moves are happening around the world, right? Who is taking advantage of this technology? It's about dynamics. It's about power dynamics. Yeah. Technology will [00:15:00] obviously have a role to play here.
Yeah. Yeah. In strengthening or weakening certain positions. Yeah. But broadly speaking, it's really about power dynamics, right? Yeah. Yeah. Interesting. Thank you so much, Dr. Nura. I have to say, doctor, this has been amazing. ~ ~thank you. It's been fun. Yeah, it's been fun for, for me as well. And,~ ~ for the audience.
Of course. I hope they find it interesting. Yeah. Thank you. Thank you so much. Thank you.