A taxonomy for business news audiences in MENA: a step in reducing information asymmetries

Informed civic participation requires access to and understanding of information, particularly in business and finance. Information asymmetry, where some segments of society have greater access to financial information than others, is a significant problem. This is especially prevalent in the MENA region, characterized by pronounced inequalities in income and access to information. Low literacy rates, limited internet access, and the impact of the COVID-19 pandemic have exacerbated these disparities. Even within wealthier MENA nations, significant intra-national gaps exist, with migrant workers often having limited and constrained access. This study investigates the nature of business news audiences in MENA, examining how they access and engage with this information, their understanding of it, and its impact on their decision-making. The core question is how to address information asymmetry in this context.

Existing research highlights the importance of reducing information asymmetries to promote informed decision-making, particularly in finance. Studies show a global trend of shifting news consumption towards social media and mobile devices, leading to news avoidance and disengagement, especially among younger audiences and disadvantaged groups. In the MENA context, this shift threatens the viability of traditional media outlets. While specialized users (investors, analysts, etc.) have privileged access to financial information through platforms like Bloomberg and Reuters, the general public, especially low- and middle-income earners, lack both access and the necessary financial literacy to utilize available information effectively. This information dominance creates a significant barrier to economic empowerment and exacerbates existing inequalities. This study builds upon existing literature by focusing on the specific context of MENA and proposing a taxonomy of news audiences to address these challenges.

This qualitative study employed eight focus groups, two in each of Egypt, Kuwait, Qatar, and Lebanon. Each group consisted of five (or four in one case) participants representing a diversity of ages (20-56) and genders. Participants were recruited using a snowball sampling technique, aiming for stratification by gender, economic activity, and nationality. The focus groups were conducted online via Zoom, in Arabic (then translated to English using Alugha software and transcribed with Otter.ai). Discussions lasted approximately one hour and focused on participants' access to and engagement with business and financial news, their sources of information, their understanding of the news, and its relevance to their lives. Ethical considerations, including informed consent and anonymization of participants, were strictly adhered to. The study aimed for theoretical saturation to determine the number of focus groups needed.

The focus group data revealed that while most participants claimed limited engagement with financial news, they paradoxically acknowledged awareness of business and finance topics through news exposure. However, they demonstrated limited recall of specific current events. The most relevant topics identified were interest rates, house prices, and inflation, but even basic information about these areas was often lacking. News avoidance was evident, with many participants expressing feelings of discouragement and irrelevance. The term 'ghayr qabil lilniqash' ('unrelatable' or 'not for me') frequently surfaced when participants discussed their perception of business and financial news. Participants often cited a lack of connection between the news content and their personal lives as a reason for disengagement. While relevance played a role in engagement (e.g., news about local businesses or housing markets), it wasn't the sole determining factor. Emotional factors, such as the perceived negativity of the news, also significantly influenced engagement. Technology-related news consistently captured participants' interest. The primary source of news was mobile phones, with social media serving as a main conduit for information. Although many participants also consulted traditional news outlets, social media played a key role in information dissemination and access, even though participants acknowledged its limitations in providing complete or reliable coverage. A small subset of participants, primarily professional investors and entrepreneurs, utilized specialized media outlets and demonstrated a much higher level of engagement and understanding. These individuals represented a potentially lucrative market for advertisers and held significant influence within the focus group discussions.

The study's findings support the proposed taxonomy of news users, revealing a significant gap between those who actively engage with and understand business and financial news and those who exhibit low engagement and limited comprehension. While 'predictive users' were clearly identified, the distinction between 'common' and 'procedural' users was less distinct. The shift to social media as the primary news source presents both opportunities and challenges for addressing information asymmetry. Although social media facilitates greater access to information, its reliance on algorithms and individual networks can also contribute to filter bubbles and the spread of misinformation. The continued inclusion of business and finance sections in mainstream media primarily serves the interests of advertisers and influential individuals, rather than addressing the informational needs of the broader audience.

This study demonstrates a significant information asymmetry regarding business and financial news in the MENA region. The proposed taxonomy provides a framework for understanding the diverse engagement levels within the audience. Future research should incorporate large-scale surveys to quantitatively assess the distribution of audience categories and explore strategies for increasing engagement with business and financial news among the wider population. This could involve tailoring content to improve relevance and relatability, promoting media literacy, and developing targeted interventions to bridge the information gap.

The study's reliance on focus groups limits the generalizability of its findings to a larger population. The sample, while diverse, may not fully represent the heterogeneity of the MENA region. Further research employing quantitative methods is necessary to validate the findings and explore the underlying factors influencing news engagement in more detail. The online nature of the focus groups might have also influenced responses.