The aim of this study is to identify the overall degree of digital transformation and all the components of digital transformation in the research area. Additionally, it seeks to understand the nature of the correlational relationships between the components of digital transformation and its overall degree. The study also aims to identify the key factors that explain part of the total variance in each component of digital transformation, and the extent to which these components contribute to explaining the overall variance in the level of digital transformation within the Azhar region. Moreover, the study examines the correlational relationships between the components of work environment development and the degree of digital transformation in the Azhar region, investigates the challenges faced by the respondents during the implementation of digital transformation, and gathers suggestions from the respondents on how to solve these challenges. To achieve the objectives of the research, a sample representing 20% of the total employees in the Azhar region of North Sinai was selected, consisting of 529 employees. Thus, the total number of sample participants was 105 employees. The sample was chosen randomly using the "ideal case" method. The results showed that the four dimensions of the digital transformation scale explain 100% of the total variance in this variable. It was found that: the dimension of digital communication and the dimension of digital security and data protection alone explain 79.6% of the explained variance in the digital transformation variable, followed by the dimension of digital infrastructure and the dimension of digital systems and smart applications, which together explain 20.4% of the explained variance.