Last Updated on November 9, 2023 by newseditor
A recent study projects that the Middle East and North Africa artificial intelligence market will increase from $500 million in 2020 to $8.4 billion by 2026.
The implications of artificial intelligence (AI) on the global economy will be profound, and most of its value potential is still untapped. Current estimates show that AI might generate about $15.7 trillion for the overall global economy in 2030, which is even more than the total current output of China and India. Policymakers from the public, private, and academic sectors have expressed their opinions on the seamless possibilities of AI and believe that Dubai and the UAE are quickly developing into a center for cutting-edge technologies, notably in AI.
A PWC report predicts that in 2023, the Middle East will profit from 2% of all AI benefits worldwide, equal to 320 billion US dollars. Additionally, the report indicates that the gains will be highest in Saudi Arabia, where AI is predicted to contribute approximately US$135.2 billion to the economy in 2030, or 12.4% of GDP. The UAE is also likely to see the most significant relative impact, with nearly 14% of 2030 GDP.
Gulf states are investing heavily in digital technologies because it is a crucial component of their long-term aspirations to diversify their national economies off oil revenue. This article will explore how the UAE and Saudi Arabia are setting various strategies and markers to become MENA’s AI hub.
Saudi Arabia or UAE: Which is the Middle East AI hub?
The UAE and Saudi Arabia have placed themselves at the forefront of digital technology in the Middle East market. To establish itself as the AI hub, the UAE has published a handbook for government organizations on integrating artificial intelligence technology and applying it in crucial fields like transportation and education.
By 2026, the AI market in the UAE alone will be worth $1.9 billion, growing by 36.2%. The adoption of AI is progressing in the nation.
Saudi Arabia, investing extensively in the business because it recognizes the promise of AI, said in 2019 that it would invest $500 billion over the next ten years in AI and other developing technologies.
To hasten the adoption of AI throughout the Kingdom’s many industries, the government has also established several initiatives, including creating the Saudi Arabian Data and Artificial Intelligence Authority and the National Data Management Office.
In general, the yearly rise in the contribution of AI in the region is predicted to range from 20% to 34%, with the UAE and Saudi Arabia projected to have the most substantial development.
The size of the impact anticipated in these two economies is not surprising given their relative investment in AI technology compared to the rest of the Middle Eastern region. All in all, both countries rank among the first 50 countries worldwide on the Global Innovation Index 20173 in terms of their capacity for innovation and the outcomes of their innovation.