Digital Marketing’s Effect on Middle East and North Africa (MENA) Banks’ Success: Unleashing the Economic Potential of the Internet

Robert Gharios and Bashar Abu Khalaf ()
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Robert Gharios: Digital Marketing Department, University of Doha for Science & Technology, Doha P.O. Box 24449, Qatar
Bashar Abu Khalaf: Accounting & Finance Department, University of Doha for Science & Technology, Doha P.O. Box 24449, Qatar

Sustainability, 2024, vol. 16, issue 18, 1-20

Abstract: One new factor driving the banking industry towards long-term, high-quality growth is digital marketing, which has arisen within the framework of the digital economy. The purpose of this research is to examine the effect of digital marketing on the financial results of MENA banks from 2010 to 2023. The research examines the impact of digital marketing techniques on the effectiveness of financial institutions through Tobit regression analysis, taking into account and controlling for sustainable practices (ESG), bank-specific characteristics (capital adequacy, bank size, liquidity, and cost efficiency), and macroeconomic variables (GDP and inflation). This empirical paper managed to collect the data for eleven countries in the MENA from the Refinitiv Eikon platform, world bank database, and the annual reports of relevant banks in the different stock markets. The final sample included 78 banks out of 120 listed banks. The results show that there is a clear association between the presence of digital marketing campaigns and improved profitability and market share growth for banks. Aligning digital initiatives with ESG principles is crucial for long-term value development, and sustainable practices increase these beneficial benefits even more. The research also shows that macroeconomic factors and bank-specific characteristics affect how effective digital marketing campaigns are. The significance of digital transformation and ESG integration in promoting competitive advantages and long-term growth in the MENA banking sector is highlighted by these findings, which have important implications for policy, investors, and bank executives.

Keywords: digital marketing presence index; ESG; market share; performance; Tobit regression; maximum likelihood estimator; MENA (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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