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Artificial Intelligence (AI) is expected to contribute $320 billion to the Middle East economy by 2030— the equivalent to 11 percent of gross domestic product (GDP), PwC Middle East said in an economic report.
The UAE will be impacted the most by AI, and will likely contribute almost 14 percent of GDP in 2030. This is followed by Saudi Arabia at 12.4 percent, while Bahrain, Kuwait, Oman and Qatar will probably see AI contributing to 8.2 percent of GDP, and Egypt by 7.7 percent.
The contribution of AI estimated for Saudi Arabia and the UAE is similar to the contributions estimated for economies in Southern Europe and Developed Asia in our global analysis.
“Beyond 2030, the scope of AI impacts on both the economy and society will almost certainly increase, so it is important for the Middle East to be strategically placed in order to provide a springboard for the future,” the report said.
The construction and manufacturing sector is expected to account for almost a third of the total benefits to the region, equivalent to almost $100 billion in 2030.
Relative to their size, the retail and wholesale trade sector and the public sector (including health and education) stand to experience the most significant contribution from AI.
“The impact on productivity alone will be transformational and disruptive for a region like the Middle East which faces weak productivity levels. Investment in AI technologies could strategically position the region for the years to come and help it move away from its reliance on oil,” said Richard Boxshall, Senior Economist at PwC Middle East.
Meanwhile, global PwC analysis has shown that AI could contribute up to $15.7 trillion to the world economy in 2030, more than the current output of China and India combined.
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