UAE TURNS ΤΟ ΑΙ FOR ITS NEXT ECONOMIC BOOM

National strategy, global partnerships, and talent programmes set stage for growth driven by artificial intelligence

- BY AHMED EL SAFTY | Special to Gulf News

Over the past three decades, the UAE has transformed itself into one of the most diversified economies in the Mena region, building its growth on a foundation of non-oil trade, logistics, manufacturing, infrastructure, tourism and construction.

By 2024, non-oil sectors contributed 75.5 per cent of GDP, with trade accounting for 16.8 per cent, manufacturing 13.5 per cent, financial services 13.2 per cent, construction 11.7 per cent and real estate activities 7.8 per cent. This broad economic base has made the country a magnet for foreign direct investment, ranking second in the world for the number of FDI greenfield projects in 2023 with nearly 1,280 initiatives launched.

Now the UAE is preparing for its next major economic wave, anchored in advanced technology and, in particular, artificial intelligence (AI). The global AI industry is expanding at an unprecedented rate: worldwide spending on AI systems reached $154 billion in 2023 and is forecast to approach $300 billion by 2026, sustaining double digit growth from around $120 billion in 2022. Estimates show that generative AI could add between $2.6-4.4 trillion in value each year once fully scaled, while it could boost global GDP by roughly 7 per cent over a decade and lift labour productivity growth by about 1.5 percentage points.