The Middle East is rapidly positioning itself as a leader in artificial intelligence (AI) innovation, particularly within the Gulf Cooperation Council (GCC) countries.
A recent report by PricewaterhouseCoopers (PwC) highlights the region’s ability to embrace and adopt AI technologies, which is driving economic growth across various sectors.
PwC’s Middle East Economy Watch outlines five factors that have propelled the GCC to the forefront of AI innovation. These include substantial investment capital, world-class ICT infrastructure, a strong appetite for new technologies, robust international relationships, and proactive government initiatives.
The GCC has seen significant investment in AI, supported by sovereign wealth funds and venture capital. Countries like Saudi Arabia and the UAE have built cutting-edge ICT infrastructure, enabling AI to flourish. Businesses in the region are leveraging AI to streamline labour-intensive tasks, with 73% of Middle Eastern CEOs believing that generative AI will transform business value over the next three years.
Additionally, GCC states have fostered international partnerships with global tech giants like Microsoft, Oracle, and Amazon, ensuring access to advanced AI technology. Governments across the region have been early adopters, with the UAE launching its national AI strategy in 2017 and appointing the world’s first AI minister.
The region has also seen a rise in homegrown AI tools. Abu Dhabi-based Jais and Saudi Arabia’s Bayan are GenAI models developed using Arabic large language models, while Abu Dhabi’s Falcon 2 outperforms Meta’s Llama 3 in certain benchmarks. These initiatives demonstrate the GCC’s growing role not only as a consumer but as a developer of AI technology.
The economic impact of AI in the region is already visible. For example, the UAE’s ADNOC saved US$500 million in 2023 by utilising AI tools, which also helped reduce carbon emissions. Looking ahead, PwC predicts continued growth in the GCC’s AI sector, driven by government support and significant capital investments.
However, challenges such as scalability and a shortage of skilled professionals remain. As the GCC solidifies its position as a global AI hub, the region’s proactive approach will undoubtedly shape its technological future.