Was 2024 a breakthrough year for the Middle East’s AI ambitions?
Introduction
2024 indeed marked a significant breakthrough year for the Middle East’s AI ambitions, with several countries in the region making substantial strides in AI development, adoption, and investment.
Key Developments
UAE’s AI Superpower Aspirations
The United Arab Emirates (UAE) has made clear its goal to become an AI global superpower by 2031. In 2024, the country took several important steps:
Local company G42 received a $1.5 billion investment, boosting the development of AI ecosystems across various sectors.
The UAE issued an AI Charter, encouraging ethical AI use and detailing principles of governance, transparency, and privacy.
Microsoft invested $1.5 billion in UAE-based AI firm G42, acquiring a minority stake.
Saudi Arabia’s AI Initiatives
Saudi Arabia doubled down on its AI efforts in 2024:
The government announced plans to invest $40 billion in AI development.
Saudi Arabia launched the National Semiconductor Hub, aiming to attract 50 firms by 2030 to build semiconductor design expertise.
The country rose to the 14th position globally and 1st in the Arab world in the Global AI Index.
A $100 billion AI initiative called “Project Transcendence” was launched to position Saudi Arabia as a global tech hub.
Regional AI Investments and Partnerships
The Middle East saw a surge in AI-related investments and partnerships:
Microsoft and Amazon Web Services announced plans to build data centers in Saudi Arabia.
The UAE’s sovereign wealth fund Mubadala and AI firm G42 set up a technology fund targeting AI deals.
Microsoft and MGX planned to launch a $30 billion AI fund focused on data centers and energy projects.
Impact and Projections
The Middle East’s focus on AI is expected to have significant economic implications:
By 2030, AI could contribute $320 billion to the Middle East economy.
Saudi Arabia is projected to see AI contribute over $135.2 billion to its economy by 2030, equivalent to 12.4% of GDP.
The UAE is expected to experience the largest relative impact, with AI contributing close to 14% of its 2030 GDP.
Challenges and Opportunities
While 2024 saw remarkable progress, challenges remain:
Despite rapid adoption, very few organizations in the region are yet seeing significant benefits from generative AI.
There’s a need for continued investment in human capital and technology.
Regulations are expected to mature over the next few years, potentially supporting AI innovation and adoption more effectively.
Conclusion
2024 was indeed a pivotal year for the Middle East’s AI ambitions, characterized by substantial investments, strategic partnerships, and government initiatives. The region, particularly the UAE and Saudi Arabia, has positioned itself as a significant player in the global AI landscape, setting the stage for continued growth and innovation in the coming years.
