AI to Reshape the Middle East Economy with a $320 Billion Contribution by 2030

A recent report by PwC has revealed that artificial intelligence (AI) will drive a significant economic transformation in the Middle East, with its contribution expected to reach $320 billion by 2030.

Saudi Arabia and the UAE Leading the Way

According to the report, Saudi Arabia is set to gain the most in absolute terms, with AI expected to contribute over $135.2 billion to its economy, accounting for 12.4% of its GDP.

Meanwhile, the UAE is projected to experience the highest relative impact, with AI contributing approximately 14% of its GDP, equating to $96 billion, making it the second-largest AI beneficiary in the region.

Egypt and Regional Competition

Egypt ranks third in AI-driven economic impact, with an anticipated $42.7 billion contribution by 2030. Additionally, the economies of Kuwait, Bahrain, Oman, and Qatar are expected to collectively gain $45.9 billion from AI advancements.

AI’s Role in the Global Economy

The report highlights AI as a key driver of global economic growth, with its contribution expected to reach a staggering $15.7 trillion by 2030—a figure surpassing the combined GDP of China and India.

Of this amount, $6.6 trillion is projected to come from productivity gains, while $9.1 trillion will be derived from consumer benefits through enhanced products and services.

Gulf Countries’ Commitment to Digital Transformation

As part of the Fourth Industrial Revolution, governments and businesses across the Middle East are recognizing the importance of AI and digital transformation. The report highlights that countries such as the UAE, Saudi Arabia, and Qatar have demonstrated a strong commitment to AI adoption and development, with companies in these nations making significant investments in cutting-edge technologies, backed by government support as early adopters.

A Golden Opportunity for the Middle East

The Middle East is expected to capture 2% of the total global AI benefits, equating to $320 billion. The report suggests that AI has the potential to revolutionize regional markets by creating innovative services and introducing entirely new business models, further solidifying the region’s position in the global economic landscape.

source : Al-Arabiya Business