Riyadh, Saudi Arabia (Enmaeya News) — Artificial intelligence could contribute up to $320 billion to the Middle East economy by 2030, representing roughly 11% of the region’s gross domestic product, according to a report by PwC.
The report highlights the potential of AI to become a key economic driver, particularly in the United Arab Emirates and Saudi Arabia.
By 2030, AI is expected to account for 12.4% of Saudi Arabia’s GDP and 13.6% of UAE GDP. In absolute terms, Saudi Arabia is projected to gain the most, with AI contributing over $135 billion to its economy, while the UAE is expected to see AI add approximately $96 billion.
Retail, healthcare, and education are expected to benefit the most from AI relative to their current size. Technologies like digital assistants, chatbots, and machine learning are increasingly being used to support or automate human decision-making.
The impact of AI will vary across the region. The UAE is expected to see the largest effect, with AI contributing nearly 14% to its GDP, followed by Saudi Arabia. Other countries, including Bahrain, Kuwait, Oman, Qatar, and Egypt, could experience annual AI-driven GDP growth of 20% to 34%.
Governments in the Gulf Cooperation Council are actively promoting AI adoption. The UAE has developed a national AI strategy and appointed ministers to oversee innovation in areas such as smart cities, 3D printing, and autonomous transport. Saudi Arabia’s Vision 2030 plan focuses on using digital technologies to diversify the economy, improve healthcare, and increase digital literacy.
However, challenges remain. Non-GCC countries in the region are adopting AI more slowly due to gaps in infrastructure and workforce skills. PwC stresses the importance of reskilling workers, improving education, and developing legal frameworks to address AI’s social and economic effects.
Financial services currently lead AI investment, followed by public services and manufacturing. The health, automotive, and finance sectors are expected to see major improvements from automation and AI-powered products.
Beyond direct benefits to specific industries, AI could boost overall economic growth by increasing productivity and consumer demand. PwC says that with strategic investments, supportive policies, and innovation, the Middle East could become a major AI hub by 2030.
