UAE economy to add ‘$182 billion’ by 2035

The UAE seeks to build an AI oriented economy, while studies show that by 2035 AI could bring into an additional “$182 billion” for the country’s economy.

UAE, AI, Economy,
A robot holding an iPad (Photo by Alex Knight on Unsplash)

AI to create “strong economic impact” in the region of the UAE, reveal a new study. Accenture has reported that AI has the potential to boost the UAE’s economy by “1.6 percentage points”, whereby contributing to an additional “$182 billion” in the “national economy” by the year 2035.

Moreover, the said report scrutinised the impact generated by the use of AI over fifteen UAE industries along with thirteen Saudi Arabian industries. The findings revealed that AI leaves the “maximum impact” in the fields like “transport and storage industries”, financial services and healthcare whereby adding “$19 billion”, “$37 billion” and “$22 billion” their respective “annual gross value added” or GVA. GVA is the yard stick for measuring the value of output for a sector’s “goods and services”.

Furthermore, the report analysed that AI is likely to bring in an additional GVA amount in industries that are labour intensive, for example “$6 billion” in education and “$8 billion” construction. On the other hand, Saudi Arabia will see a GVA boost of “$215 billion”, thanks to AI. The Middle East, mainly the UAE is looking into diversifying from its revenue dependency on crude oil.

In fact, last year, UAE had come up an “artificial intelligence strategy” which specially focuses on hastening the productivity of the country besides improving the “performance of all official departments”. Keeping in line with these developments, the UAE has even employed an “artificial intelligence” minister for developing the country’s “AI strategy”.

From the region of the UAE, Dubai has been leading the way in “automating processes”, whereby introducing “robo-cops” so as to replace around 25% “patrolling taskforce” by year of 2030. Additionally, emirate has begun its testing process for the first ever “autonomous taxi pods” in the world. Similarly, in Saudi Arabia, a robot has recently received the country’s citizenship, which also points towards the AI openness of these countries who seek to navigate their ways to create their “non-oil economy”.

The managing director of Financial Services at Accenture, in the “Middle East and Turkey”, Amr El Saadani said: “The level of growth that AI stands to bring to the U.A.E.’s economy is unparalleled. The nation’s leaders already understand the impact of this powerful technology, evidenced by the appointment of the first Minister of AI last year.

“While AI-led growth will be felt across a wide variety of industries, the financial services sector has the most to gain — which isn’t surprising, given that many of its jobs can be significantly augmented with AI and machine learning. In addition, Accenture reports have already shown that banking executives globally are taking action to transform their businesses through the use of AI.”