Many articles and books have been devoted to exploring the emergence of smart cities. However, the editing of articles published in the book reaches a critical juncture in the development of this concept, accompanied by a new development of the current situation. Smart cities are no longer distant concepts supported by pioneering experiences but have become an integral part of urban planning and policy in both developing and developed countries [6]. This paper examines the influence of the digital economy on reorganization industrially and investigates the arbitrating effects of various relevant factors. By analyzing how the advancement of the digital economy drives reforms in industrial structures, a refined measurement indicator approach for the digital economy has been developed. This system encompasses aspects such as digital infrastructure, digital manufacturing, and industrial digitization. Furthermore, the digital economic growth within the region is assessed through data from seven smart cities, as provided by the Middle East Government Commission.. The findings indicate that growth in the digital economy significantly enhances both the pace and effectiveness of structural reforms and the rationalization of industrial structures. [7]. It demonstrates that the expansion of the digital economy can affect the overall growth of the digital sector. Additionally, the digital economy fosters industrial reorganization indirectly by influencing individual funds, technical advancements, and financial progress. The findings of this research clarify how digital economic growth impacts the reform of industrial structures, offering theoretical insights that can aid in the decision-making concerning industrial restructuring and upgrades in the economy.