As part of ongoing efforts to diversify their economies and build a platform for sustainable future growth, MENA countries are increasingly turning to artificial intelligence (AI). A slew of recent investment and initiatives – primarily in academia and the government, but also in the private sector – has reinvigorated interest from industry leaders around the globe in the potential for AI to strengthen the efficiency and sustainability of MENA economies. AI could bring about an additional $320bn in economic growth to the MENA region by 2030, according to a report from the Economist Intelligence Unit (EIU) and Google published in June 2022.
Economic Potential
In recent years the UAE, Saudi Arabia, Qatar and Egypt have published government-driven strategies to develop AI. However, much of their momentum was derailed in the Covid-19 pandemic’s early months. Despite the temporary setback, the crisis has underscored the urgency of economic diversification, and several MENA nations have accelerated investment in non-hydrocarbons sectors where AI could play a key role.
Launched in October 2019, Qatar’s National AI Strategy identifies four areas in which the country could become a leader in AI. First, in precision medicine, Qatar can develop specialised AI tools to detect, anticipate and manage hereditary diseases based on data from its Qatar Genome Project. Second, in communications, Qatar-based institutes could collaborate on the development of AI technology to digitalise the Arabic language. Third, in energy, Qatar could gather data from its gas fields to create AI products for the global industry. Lastly, in sports, Qatar’s use of AI in sporting infrastructure can be duplicated in international markets.
AI is expected to have a far-reaching impact across broader economies and will be vital to realising long-term economic plans. “AI is helping businesses become more customer-centric, efficient, productive and competitive in both local and regional markets,” Said bin Abdullah Al Mandhari, CEO of ITHCA Group, an Omani ICT company, told OBG. Cybersecurity is another area in which AI can add value. Cyberattacks have been on the rise since the beginning of the Russia-Ukraine conflict in February 2022, presenting an elevated threat to emerging markets.
In a region where several countries derive sizeable portions of GDP and export revenue from hydrocarbons, it is unsurprising that the energy sector has attracted significant AI investment from governments and companies looking not only to diversify away from oil and gas, but also to bolster the sector’s efficiency and reduce its carbon emissions. AI is also expected to be highly valuable in enabling the transition to green energy by managing the decentralised electricity systems that renewable sources rely upon and monitoring carbon emissions.
Investment in the Future
Given their large youth populations, many MENA nations are making a significant investment in AI education and research to ensure that such technologies play a key role in the future economy and workforce. Of the estimated $320bn that MENA nations will generate by 2030 thanks to the adoption of AI, Saudi management consultancy Strategic Gears expects Bahrain, Kuwait, Oman and Qatar to see an AI contribution of around $45.9bn, or roughly 8.2% of each country’s GDP, by that year. As of 2022 Qatar’s AI market size was estimated at $31m, with projected annual growth of 17.4% set to boost that figure to $58.8m by 2026.
Given that AI’s benefits are multi- and intersectoral, MENA countries can craft strategies and build AI-tailored ecosystems to suit their respective economic and social structures. As MENA nations and other emerging markets continue to invest in AI education, some industry figures say they may have a distinct advantage over developed countries by leveraging local talent to bolster their economies.
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