Middle East AI: Driving Inclusive Growth & Economic Transformation

Artificial Intelligence (AI) is no longer a futuristic concept but a present-day reality rapidly transforming economies across the Middle East. Once a theoretical ambition, AI has firmly embedded itself as a pivotal driver of inclusive growth and economic diversification in the region. From the bustling metropolises like Dubai to the agricultural landscapes of Jordan, AI's influence is palpably shaping various sectors, positioning itself as a primary engine of economic progress. Projections from authoritative bodies underscore this trajectory; PwC, for instance, anticipates AI contributing over $300 billion to the region's economy by 2030. Furthermore, the World Economic Forum's "Future of Jobs Report 2025" highlights a global net gain of 78 million jobs attributable to AI, a significant portion of which is expected to materialize within the Middle East, a region home to substantial populations, such as Egypt's nearly 120 million inhabitants. This transformative journey is being orchestrated through strategic investments and targeted applications, fostering an environment where AI's potential is realized across a diverse socio-economic spectrum.

The Gulf's Bold Leap into AI

Pioneering Strategies and Investments

The nations comprising the Gulf Cooperation Council (GCC) — namely Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Bahrain, and Oman — are at the forefront of AI adoption, demonstrating an unwavering commitment to integrating advanced technological solutions into their national frameworks. The UAE's "AI Strategy 2031," initiated in 2017, exemplifies this commitment. This comprehensive strategy, overseen by the world's first Minister of AI, permeates critical domains such as education, healthcare, governance, and energy. A tangible manifestation of this ambition is Abu Dhabi's ongoing development of one of the globe's largest AI data centers, a testament to the nation's infrastructural investment in this cutting-edge technology.

Neighboring Saudi Arabia has similarly launched an ambitious "Data and AI strategy" in 2020, meticulously aligned with its overarching national transformation agenda, "Saudi Vision 2030." This strategy has already yielded remarkable initiatives, including the groundbreaking decision in 2017 to grant citizenship to a robot during its Future Investment Initiative (FII) Forum. More recently, Saudi Arabia has further solidified its position by unveiling HUMAIN, a national AI champion under the Public Investment Fund (PIF). Chaired by HRH Crown Prince Mohammed bin Salman, HUMAIN is poised to offer an extensive suite of AI services, products, and tools. This encompasses next-generation data centers, robust AI infrastructure and cloud capabilities, and sophisticated AI models and solutions. Notably, HUMAIN will also develop one of the world's most potent multimodal Arabic large language models (LLMs), signaling a strategic focus on region-specific AI advancements.

Emerging Economies: Leveraging AI for Development

National AI Initiatives

Beyond the affluent Arabian Gulf, other emerging economies within the Middle East are strategically harnessing AI to address their unique developmental challenges and unlock new opportunities. These nations are aligning AI integration with their respective national transformation programs, driven by both aspiration and necessity.

Egypt, for example, inaugurated its national AI strategy in January of the current year, with a clear objective to bolster key sectors such as healthcare and fintech. In the realm of financial technology, AI is specifically targeted at enhancing financial inclusion for both individuals and businesses, thereby fostering broader economic participation. Jordan has also embarked on its own five-year AI strategy, outlining 68 distinct projects designed to augment the nation's AI capabilities across diverse sectors, including but not limited to healthcare and logistics. These initiatives underscore a concerted regional effort to build robust AI ecosystems tailored to local contexts.

It is also pertinent to acknowledge the collective endeavors of North African countries like Morocco, Tunisia, Algeria, and Egypt, which, as members of the African Union (AU), are actively emphasizing the strategic importance of AI. This collaborative spirit culminated last year in July, when all 55 AU member states endorsed the comprehensive AU AI Continental Strategy, highlighting a unified vision for AI governance and development across the broader African continent, which includes a significant portion of the Middle East.

AI in Practice: Transforming Key Sectors

Diverse Applications Across the Region

The practical integration of AI extends far beyond governmental strategies aimed at macro-economic upliftment; its impact is profoundly felt across a multitude of sectors throughout the Middle East.

• Agriculture – In Morocco, the country stands as a prime example of smart farming implementation. The nation is increasingly employing AI-driven solutions to optimize agricultural yields, utilizing drones and sensors to meticulously analyze soil conditions, identify crop diseases, and recommend precise, data-backed interventions. This innovative approach is crucial for enhancing food security and economic stability in a key sector of Morocco's economy.
• Healthcare – The healthcare sector in the UAE has witnessed remarkable advancements through AI. The Emirates Healthcare System (EHS) reported accurate diagnoses for 532 patients over a three-year period, attributed to AI integration. Furthermore, AI-enhanced diabetes management systems have significantly reduced diagnosis and treatment times for diabetic patients, streamlining processes to just two days.
• Logistics – A vital component of global trade, logistics is also undergoing an AI-driven transformation. The Suez Canal in Egypt, one of the world's busiest maritime corridors, is leveraging AI to enhance operational efficiency for both ships and customers. This technology also contributes to improving the environmental sustainability of its surrounding areas, demonstrating AI's multifaceted benefits.
• Financial Services – The financial services industry is experiencing a seismic shift, with AI poised to contribute as much as 13.6 percent to the region's Gross Domestic Product (GDP) by 2030. This growth is particularly pronounced within financial technologies (fintech), where an increasing number of innovations, from wealth management solutions to payment systems, are either directly powered by or indirectly influenced by AI, fostering greater innovation and accessibility.
• Smart Cities – The development of Smart Cities represents a monumental leap forward. These urban environments seamlessly integrate AI with the Internet of Things (IoT) and blockchain technology to intelligently manage traffic flows, optimize energy consumption, and streamline public services. Prominent examples include Dubai's "Smart Dubai" initiative, Qatar's ambitious Lusail City, and Saudi Arabia's visionary NEOM project. Even Egypt's new administrative capital, designed to supersede Cairo, is being meticulously planned as a smart city, embodying the region's future-oriented vision.

The overarching narrative of AI in the Middle East mirrors global efforts to harness advanced technology for societal betterment. Despite the region's inherent social and economic diversity — spanning from the affluent Gulf states to more developing areas — a consistent theme emerges: AI is not merely a futuristic concept but a rapidly materializing force. Its ongoing implementation across various facets of daily life is demonstrably leading to positive transformations, underscoring its pivotal role in shaping a more prosperous and inclusive future for all.