Artificial Intelligence could add $320bn to GCC and Egypt economies by 2030: report

Artificial intelligence is allowing robots to perform increasingly sophisticated tasks. (AFP)
Updated 12 February 2018

Artificial Intelligence could add $320bn to GCC and Egypt economies by 2030: report

LONDON: Artificial intelligence is set to swell the GCC and Egypt’s economies to the tune of $320 billion by 2030, according to a report.
Globally, the economic uplift could be to the magnitude of $15.7 trillion, more than the current output of China and India combined, according to a report by professional services firm PwC.
Within that increase, $6.6 trillion is likely to come from increased productivity, while $9.1 trillion is likely to come from benefits to consumers.
Artificial intelligence (AI) is a collective term for computer systems that can sense their environment, think, learn, and take action in response to what they are sensing and their objectives. AI is rapidly evolving, with current technology including autopilots, digital assistants and chatbots.
In the economies of the GCC and Egypt, the UAE and Saudi Arabia are expected to particularly benefit from the rise of AI, with PwC predicting it could contribute to almost 14 percent of UAE GDP by 2030. This is followed by KSA at 12.4 percent, the “GCC4” (Bahrain, Kuwait, Oman and Qatar) at 8.2 percent, and lastly by Egypt at 7.7 percent.
The report reveals there are untapped opportunities that could increase the impact of AI on the Middle East’s economies, if governments continue to push the boundaries of innovation and the implementation of AI across businesses and sectors between now and 2030.
“The future strategy of governments in the region, particularly in the UAE and KSA, indicate a strong push toward the development of AI technologies, for example Vision 2030 in KSA and the government’s AI Strategy in the UAE,” Richard Boxshall, senior economist at PwC Middle East, told Arab News.
The first wave of the AI revolution consists of largely known technological innovations that are either adoption-ready or are currently being fine-tuned for broader implementation. Beyond 2030, the scope of AI impacting both the economy and society overall 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, PwC said in a statement.
Fears of AI taking over human jobs have been voiced regularly but according to PwC this should not be a concern: “It is likely that in the coming years as AI is developed we will see a shift in the types of jobs performed by humans, but not necessarily a reduction in the number of jobs,” Boxshall said.
In the UAE, AI is at the forefront of the government’s strategic plans, with government representatives at the recent World Economic Forum touting how the country is embracing the technology.
At the sectoral level, the most significant gains in absolute terms are expected in the construction and manufacturing sectors, which are expected to account for almost a third of the entire benefits to the Middle East region, equivalent to almost $100 billion by 2030.


Dubai launches economic program for post COVID-19 recovery 

Updated 05 August 2020

Dubai launches economic program for post COVID-19 recovery 

  • “The Great Economic Reset Programme” is part of a “COVID Exit initiative” to help the recovery and reshaping of the economy
  • The economic program will feature analyses of current and future policies

DUBAI: Dubai launched an economic program as part of its efforts to reshape the emirate’s economy for a “sustainable” and “resilient” future post the coronavirus pandemic, the government said. 
The Dubai government partnered with the Mohammed bin Rashid School of Government (MBRSG) to launch “The Great Economic Reset Programme” as part of a “COVID Exit initiative” to help the recovery and reshaping of the economy, state news agency WAM reported on Tuesday. 
The economic program will feature analyses of current and future policies, research and extensive stakeholder consultation to set the direction and tone of future economic policies, regulations and initiatives.
The government plans to use local and international experts for economies and societies to create growth strategies for the Dubai economy.
The MBRSG held a “Virtual Policy Council,” with global experts and thought leaders to discuss the impacts of COVID-19 on the economy and potential policy responses and initiatives. 
Chief economists, senior practitioners and researchers from leading global institutions including the World Bank, joined experts from Dubai Economy and the MBRSG at the first roundtable.
“I believe the triple helix collaboration between public, private and academia stakeholders have always produced the best solutions in the past. In the highly uncertain environment now, extensive collaboration and cooperation between all stakeholders are vital to our future prosperity. The Virtual Policy Council will propose the best approaches Dubai and the UAE can adopt to address the risks and opportunities in the next normal economy,” said Mohammed Shael Al-Saadi, CEO of the Corporate Strategic Affairs sector in Dubai Economy.
“This Virtual Policy Council is a key component of the whole process where global experts and thinkers share their views on the future economy. In this new era, the role of governments in enabling the new economic actors is becoming increasingly central, and Dubai is well-positioned to lead the way with innovative models of growth post COVID19,” said Professor Raed Awamleh, Dean of MBRSG.
The roundtable also discussed the impact of the pandemic on international trade, foreign investment and tourism, as well as the rise of digital globalization.