Accelerating Towards the Future: The Growth of AI in the Middle East

Economic Focus looks into the adoption of AI by forward thinking Arab governments and the potential that this opens up for investment and collaboration.

In the vanguard of the technological revolution, countries in the Middle East have been transforming the region into a dynamic arena for the adoption and integration of artificial intelligence (AI). This region, with its rich tapestry of cultures and histories, is now crafting a new narrative, one where AI acts as a catalyst for economic innovation, governmental efficiency, and societal advancement. Saudi Arabia, in particular, stands as a paragon of this transformation, embodying an ambitious drive towards leveraging AI to forge a future filled with promise and potential.

Strategic Investments: The Engine of AI Advance

The propulsion towards AI in the Middle East is powered by strategic and substantial investments. Both government entities and private sectors are investing heavily in AI research, infrastructure, and startups, laying down the groundwork for a future where innovation flourishes. In the UAE, a government strategy aims to double the contribution of the digital economy to non-oil GDP to over 20 per

cent by 2031 with the aim of making the UAE a world leader in the use of AI.

The UAE has a Minister of Artificial Intelligence and has set up a Council for Artificial Intelligence and Blockchain tasked with proposing policies to create an AI-friendly ecosystem in the emirates including advancing research and promoting public-private sector collaboration, including working with international institutions and investors, to accelerate the adoption of AI across sectors.

Meanwhile, AI forms part of Qatar’s longterm objectives as embodied in the Qatar National Vision 2030 development plan. The vision recognises that AI can serve as a powerful technological enabler for achieving its key objectives described as pillars. For example, the vision’s economic pillar calls for the development of a “knowledge-based economy and by investing in AI education and homegrown AI solutions, the effort to build an economy based on knowledge capital can be accelerated. Similarly, developing AI-based technology to improve transport efficiency can help reduce

pollution and foster an environmentfriendly development.

Qatar is determined not to miss out on the AI revolution whose scale of transformation has been compared to the industrial revolution in Europe. As a response, Qatar is taking steps to influence the evolution of AI technology.

Notably, Saudi Arabia’s Vision 2030 highlights a commitment to positioning the kingdom as a global epicentre for AI and data-driven industries, reflecting a broader regional ambition to transcend traditional economic models in favour of knowledge and innovation-driven economies.

A Lighthouse Project in Saudi Arabia

The “Neom” project, a visionary $500 billion endeavour, is emblematic of Saudi Arabia’s forward-looking ethos. This initiative aims to construct a mega-city at the nexus of AI and renewable energy, showcasing the kingdom’s aspiration to be at the forefront of futuristic

urban living, healthcare solutions, and environmental sustainability. Neom is poised to set a global standard for the integration of AI in social development, highlighting the transformative potential of such technologies in shaping our collective future.

The Horizon Ahead: A Landscape of Innovation

Looking forward, the trajectory of AI across the Middle East is characterised by boundless opportunity and potential for investors and companies of all sizes. With robust investment and a nurturing ecosystem for innovation, the region has put itself on a fast track to widespread adoption of AI across diverse sectors. The anticipated transformations in education, healthcare, transportation, and energy, among others, promise not only to enhance service delivery and efficiency but also to open new avenues for economic and social growth.

The Ripple Effect: Benefits Across the Board

The impact of AI’s rollout in the Middle East extends far beyond economic metrics alone. It harbours the potential to significantly uplift public services, making them more efficient and accessible. In

healthcare, AI can revolutionise patient care through personalised treatments, early diagnostics, and expanded remote care capabilities. In the area of education, AI-powered personalised learning experiences can bridge the gap between traditional educational models and the demands of a digital-first global economy.

Embracing a Future Shaped by AI

As the Middle East strides confidently into the AI era, the sentiment is overwhelmingly optimistic. The region is not merely adopting new technologies; it is wholeheartedly embracing the transformative potential that AI brings. Through a commitment to innovation, investment in human capital, and the ethical deployment of AI, the Middle East is positioning itself as a frontrunner in the global AI landscape.

The enthusiastic embrace of AI, exemplified by landmark projects like Neom, reflects a wider regional aspiration towards progress, innovation, and a brighter future. As AI technologies continue to evolve, the Middle East’s strategic approach—marked by visionary leadership, significant investments, and a deep faith in the transformative power of technology—promises to pave the way for a future that is not just prosperous but also inclusive, sustainable, and forward-thinking.

Serbia - An Emerging Global AI Powerhouse

Serbia is at the forefront of embracing artificial intelligence to revolutionise its economy and diversify its technological landscape. The EU candidate country has dedicated significant efforts toward the AI industry, becoming a central hub of innovation in Southeast Europe. With thriving science and technology parks, Serbia is home to a pioneering AI institute. This institution is committed to fostering an AI ecosystem and building a robust, economically vital AI sector, aiming to position Serbia as a global AI powerhouse.

By collaborating with different nations across the world, the Republic of Serbia has proudly become one of the 29 esteemed members of the Global Partnership for Artificial Intelligence (GPAI), aligning with the world’s foremost AI experts. The future looks bright for Serbia, especially with the upcoming Expo 2027, an event which is set to showcase significant advancements and transformations marking a new era of progress in the years ahead.