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The article aimed to investigate the most important challenges facing municipalities in their transition from traditional administration to electronic administration. The descriptive analytical approach was adopted to study the study population (managers and heads of departments in municipalities working in supervisory positions) and a purposive sample (121 respondents) from various municipalities of the central, northern and southern regions. It was found that organizational and administrative challenges are the highest, then societal challenges are in second place, financial challenges are next, and human challenges are the least. The study recommended that the electronic transformation in administration be given all attention in terms of technology and in terms of the human resources necessary for the success of this transformation. It is also necessary to focus on educating the local community and empowering it with technology so that it is ready to accept and keep up with this transformation. [ABSTRACT FROM AUTHOR]