Key Takeaways

• Artificial intelligence (AI) is expected to add $320 billion to MENA’s economy by 2030.
• The UAE and Saudi Arabia have already established a few value-creating collaborations in the global AI space.
• Saudi Arabia’s $400 million investment in Zhipu AI will give the Kingdom access to advanced technologies and new market insights.

A popular proverb says that the best way to shape the future is by inventing it. This saying perfectly captures MENA’s efforts to become a global tech hub via strategic investments in AI. The region is not just catching up with global AI trends—it is setting its own pace. 

With AI projected to add $320 billion to MENA’s economy by 2030, countries like the UAE, Saudi Arabia, and Qatar are intensifying efforts to become leaders in the field. However, apart from funding, the region needs to form global partnerships and create a warm working environment to attract AI talent to make its vision a reality.

AI Investments to Positively Impact MENA’s Tech Landscape

Artificial Intelligence (AI) is set to add $15.7 trillion to the global economy by 2030, which surpasses the combined economic output of major countries like China and India. The Middle East is expected to capture 2% of these global benefits, or $320 billion, by 2030. AI’s economic impact in the region is expected to grow by 20-34% annually, marked by major investments in AI development and implementation.

MENA countries, especially the UAE and Saudi Arabia, are actively seeking global value-creating collaborations to strengthen their AI prowess. The region’s focus on AI goes beyond economic goals—it addresses regional challenges like healthcare efficiency and personalized medicine, smart mobility and governance, AI-powered cleantech solutions, and more. 

AI technology is central to Saudi Vision 2030 and the UAE’s National AI Strategy 2031 programs as part of their efforts to diversify the economy. They are set to be the biggest beneficiaries in the region, with AI expected to add over $135.2 billion (12.4% of GDP) in Saudi Arabia and constitute up to 14% of GDP in the UAE. 

Saudi Arabia’s Public Investment Fund (PIF) allocated a $40 billion fund focused on AI. The fund aims to support startups like chip makers and data centers. Another KSA-based fund, Property7 Ventures, recently invested $400 million in Zhipu AI, a Chinese AI company that provides API services, seeking access to advanced technologies and new market insights.

The UAE also recently announced a $500 million AI investment, focusing on advancing research and implementing AI across healthcare, education, and transportation. For example, AI-powered solutions are assisting the traffic systems in Dubai and ease congestion. 

Different sectors in the GCC are embracing AI at varying approaches and paces. Qatar is constantly progressing in AI-powered cybersecurity and autonomous systems. Egypt is focused on developing AI solutions for agriculture and smart cities initiatives, while Bahrain and Oman are using AI to improve financial services and government efficiency. 

However, along with these promising developments, there are also challenges. One of them is the limited number of AI-focused professionals. With nearly every tech company and government-backed organization working on an AI project, the demand for AI talent is at an all-time high, but the supply remains very limited. Geopolitical tensions in the region could also pose a challenge.

MENA’s Future Will Be Driven by AI

AI is set to transform industries in the Middle East by introducing new, more effective, and low-cost services and business models. Governments that today craft future-thinking AI strategies could become market leaders and benefit from the $320 billion expected gain in the region. 

The potential grows even further as governments and businesses unite efforts and embrace AI capacities to open new opportunities. Achieving AI goals may be challenging considering other regions are also actively advancing, but with a clear vision and solid funding, MENA is on the way to creating its blueprint for AI.