In the heart of the Middle East and North Africa (MENA), a digital revolution is underway as nations pivot towards artificial intelligence (AI) to chart a course for sustainable economic growth and innovation. With investments soaring and strategies taking shape, the region is poised to harness AI’s transformative power across sectors.
Recent estimates suggest that AI adoption could inject $320bn into the MENA region’s economy by 2030. This surge in potential has spurred governments, academia, and businesses to collaborate on AI initiatives, signalling a dynamic shift towards technology-driven solutions.
Key players like the UAE, Saudi Arabia, Qatar, and Egypt are at the forefront, rolling out strategic plans to integrate AI into core sectors like oil and gas, government services, financial services, and more. The Covid-19 pandemic, while posing initial challenges, has underscored the urgency for economic diversification, propelling MENA nations to accelerate their AI investments.
Education and talent development are top priorities, especially with the region’s youthful demographics. Countries like Saudi Arabia invest heavily in AI education, aiming to train thousands of specialists to fuel AI-driven growth. Saudi Aramco’s recent partnership with King Abdullah University further underscores this commitment to AI advancement.
Omani push
Oman, too, is making significant strides in AI development, earmarking substantial funds and hosting forums like the “Artificial Intelligence Economics Initiative 2024”. With a vision to lead in AI and future technologies, Oman’s National Programme for Artificial Intelligence and Advanced Technologies prioritises sectors like tourism, logistics, and mining for AI integration.
In a move poised to catapult Oman into the forefront of AI innovation, the Ministry of Economy has earmarked a staggering OMR15m ($39m) for AI projects in 2025. This substantial investment underscores Oman’s commitment to embracing cutting-edge technologies and fostering a dynamic digital ecosystem.
The announcement during the “Artificial Intelligence Economics Initiative 2024” forum in Muscat signals a strategic shift towards harnessing AI’s transformative power across sectors. With OMR10m ($26m) allocated to government agencies and OMR5 million ($13m) designated for governorates, the stage is set for widespread AI integration at local and national levels.
Dr Said bin Mohammed al Saqri, Minister of Economy, has emphasised the imperative of aligning national efforts with global technological advancements. He articulated Oman’s ambition to emerge as a frontrunner in AI and future technologies, highlighting the pivotal role of AI in fortifying the economy’s resilience and adaptability.
Oman’s strategic roadmap, outlined in the 10th five-year development plan (2021-2025), accentuates AI’s pivotal role in stimulating economic activity and fostering innovation. With a keen focus on empowering small and medium enterprises (SMEs) and nurturing a robust knowledge economy, Oman is poised to harness AI’s potential across diverse sectors.
Tanmai, an analyst working for an insurance agency in Oman, pointed out that “AI can promote self-sufficiency by optimising agriculture, energy, water management, manufacturing, healthcare, education, and infrastructure development. Through data-driven decision-making and automation, AI enhances productivity, reduces reliance on imports, and strengthens resilience to external challenges.”
Key sectors
While observing the roadmap ahead for various sectors of Oman’s economic landscape, the National Programme for Artificial Intelligence and Advanced Technologies is at the vanguard of Oman’s AI journey, emphasising tourism, logistics, and mining sectors. Dr Ali al Shidhani, Under-Secretary for Communications and Information Technology, has outlined the ambitious AI action plan to propel Oman into the league of top AI-ready nations.
However, it is also vital to note the cons of adopting a fully automated blueprint. “AI risks include job displacement, bias, privacy concerns, ethical dilemmas, security vulnerabilities, unintended consequences, regulatory challenges, and social disruption,” added Tanmai Fatarpekar, who advises caution while looking ahead into the future.
This strategic thrust towards AI excellence is part of Oman’s broader digital transformation agenda, encompassing cybersecurity, e-commerce, digital infrastructure, and fintech. Together, these initiatives are poised to catalyse a fivefold growth in the digital economy’s contribution to the GDP, ushering in an era of unprecedented innovation and economic resilience.
