AI Poised to Inject $1 Trillion into MENA Economy by 2030, New Research Reveals

Artificial intelligence holds the potential to inject approximately $1 trillion into the Middle East and North Africa (MENA) region by 2030, provided it is utilized efficiently, according to new research from the World Economic Forum (WEF). This finding emerges as the WEF and the Government of Dubai co-host the inaugural Annual Meeting of Global Future Leaders this week. The three-day event convenes hundreds of global leaders and experts for intergenerational discussions focused on addressing future challenges.

The WEF's analysis indicates significant potential for value creation by 2030 if the region leverages AI for growth in its sustainability and economic sectors. Specifically, this could translate to up to $200 billion in sustainable financing via the financial sector, $370 billion in sustainable investment flows facilitated by the public sector, $250 billion in avoided long-term asset losses, $90 billion in increased valuation for the energy sector through enhanced sustainability performance, and $100 billion in sustainable projects launched through cross-sector partnerships. Cumulatively, these contributions are valued at over $1 trillion.

Experts suggest the region is well-positioned for this AI-driven growth, emphasizing the necessity of cross-sector collaboration. Maroun Kairouz, managing director of the WEF, stated, "Mena has the resources, investment capacity and ambition to become a major centre of AI-led growth. Turning that ambition into reality will require innovation across data-centre infrastructure, energy and water systems, and the application of AI to drive sustainability solutions." Case studies highlighted the successful application of AI for sustainable initiatives by various UAE and regional companies, including First Abu Dhabi Bank in sustainable finance and Adnoc in the energy sector.

The UAE is actively leading AI investment, with the US-UAE AI Acceleration Partnership fostering an AI campus in Abu Dhabi and a 10-year, $1.4 trillion investment plan. Abu Dhabi is making substantial bets on AI, allocating $3.54 billion to integrate the technology into public services by next year.

However, the second report from the WEF also issued a caution regarding the increased consumption of resources like energy and water by data centers powering AI infrastructure, particularly in a region already facing extreme heat and water scarcity. Data-center cooling, a water-intensive process, was identified as a key area requiring innovation and the adoption of sustainable methods for long-term efficiency and resilience.

Despite these challenges, the opportunities for data centers in the MENA region are considerable. Experts note that connecting new data centers to the grid can be significantly faster, typically taking two to five years compared to other mature markets. Nedaa Almubarak, managing director of SRMG Think, commented, "Mena is uniquely positioned to lead the next wave of digital infrastructure by bringing together its energy capabilities, investment capacity and technological ambition. The opportunity lies in aligning intelligent infrastructure with efficient resource use to build resilient, sustainable and competitive digital ecosystems that drive long-term economic growth and innovation."

The Annual Meeting of Global Future Leaders in Dubai is scheduled to continue until Thursday.