LONDON: Artificial intelligence is set to swell the GCC and Egypt’s economies to the tune of $320 billion by 2030, according to a report.
Globally, the economic uplift could be to the magnitude of $15.7 trillion, more than the current output of China and India combined, according to a report by professional services firm PwC.
Within that increase, $6.6 trillion is likely to come from increased productivity, while $9.1 trillion is likely to come from benefits to consumers.
Artificial intelligence (AI) is a collective term for computer systems that can sense their environment, think, learn, and take action in response to what they are sensing and their objectives. AI is rapidly evolving, with current technology including autopilots, digital assistants and chatbots.
In the economies of the GCC and Egypt, the UAE and Saudi Arabia are expected to particularly benefit from the rise of AI, with PwC predicting it could contribute to almost 14 percent of UAE GDP by 2030. This is followed by KSA at 12.4 percent, the “GCC4” (Bahrain, Kuwait, Oman and Qatar) at 8.2 percent, and lastly by Egypt at 7.7 percent.
The report reveals there are untapped opportunities that could increase the impact of AI on the Middle East’s economies, if governments continue to push the boundaries of innovation and the implementation of AI across businesses and sectors between now and 2030.
“The future strategy of governments in the region, particularly in the UAE and KSA, indicate a strong push toward the development of AI technologies, for example Vision 2030 in KSA and the government’s AI Strategy in the UAE,” Richard Boxshall, senior economist at PwC Middle East, told Arab News.
The first wave of the AI revolution consists of largely known technological innovations that are either adoption-ready or are currently being fine-tuned for broader implementation. Beyond 2030, the scope of AI impacting both the economy and society overall will almost certainly increase, so it is important for the Middle East to be strategically placed in order to provide a springboard for the future, PwC said in a statement.
Fears of AI taking over human jobs have been voiced regularly but according to PwC this should not be a concern: “It is likely that in the coming years as AI is developed we will see a shift in the types of jobs performed by humans, but not necessarily a reduction in the number of jobs,” Boxshall said.
In the UAE, AI is at the forefront of the government’s strategic plans, with government representatives at the recent World Economic Forum touting how the country is embracing the technology.
At the sectoral level, the most significant gains in absolute terms are expected in the construction and manufacturing sectors, which are expected to account for almost a third of the entire benefits to the Middle East region, equivalent to almost $100 billion by 2030.
Artificial Intelligence could add $320bn to GCC and Egypt economies by 2030: report
Artificial Intelligence could add $320bn to GCC and Egypt economies by 2030: report
RLC Global Forum highlights role of Saudi youth in retail digital shift
RIYADH: Saudi Arabia’s young and highly digital population is reshaping how the Kingdom’s retail sector adopts new technologies and artificial intelligence, advancing faster than many global competitors, industry leaders told Arab News.
Speaking on the sidelines of the RLC Global Forum in Riyadh, executives told Arab News that the intersection of a youthful population and strong investment in AI is driving a shift in the industry’s priorities.
From understanding consumer behavior to leveraging the Kingdom’s growing status as a global AI leader, Saudi Arabia is becoming as a unique destination for the retail sector to thrive, learn, and evolve in the digital sphere.
Abdullah Al-Tamimi, CEO of commercial real estate company Hamat Holding, told Arab News that the firm is keen to analyze and understand consumer behavior, with a particular focus on the younger generation as a key part of that insight.
“Actually, it’s a big part of our day-to-day operation,” he said, adding that the company invests heavily in understanding customer needs and behavior and works to correct any missteps.
Al-Tamimi emphasized paying close attention to small details, noting that younger consumers are especially sensitive to the overall experience and “deserve that we work around the clock in order to improve it.”
He added that this focus “can be a competitive advantage for Saudi Arabia as well.”
Al-Tamimi said that as the younger generation grows accustomed to new technology shaping retail customer experiences, Hamat Holding is leveraging AI to enhance them further.
“We started a couple of initiatives improving digitalization,” he said, adding that the company sees digital tools as a way to enhance its work by automating day-to-day operations and allowing teams to focus on bigger-picture and more complex tasks.
While the firm has expanded its use of technology, he stressed it has not replaced human workers, emphasizing the continued importance of human capital for creativity and interaction. “AI is a big part of our strategy,” Al-Tamimi added.
Amit Keswani Manghnani, chief omnichannel and AI officer at luxury goods retailer and distributor Chalhoub Group, told Arab News that bridging a younger customer base with continuous digital development is key to advancing the Kingdom’s retail strategies.
On Saudi Arabia’s demographics, he said: “We look at 2030 as really building products which serve especially the younger population, which is growing and very digitally savvy.”
Manghnani underscored the unique characteristics of the Kingdom’s retail market as a tool for developing effective products and customer experiences.
“So it’s very digitally savvy, much more than in other markets,” he said, noting that e-commerce penetration is rising not only through online purchases but also via digital catalogs that drive in-store visits.
Manghnani said investment is focused on making products more digitally accessible and easier to use, while strengthening customer service to meet the expectations of what he described as a demanding but welcome consumer base. “Service excellence, digital — all these things together are how we are tapping into the younger population, which again is extremely savvy.”
Manghnani reinforced Al-Tamimi’s point that the Kingdom holds a competitive advantage, citing the speed at which its retail and technology industries are aligning.
“As a market, we’re tending to see the adoption of digital,” he said, referring to AI, data and other forms of digital interaction, adding that these tools are increasingly being combined.
He noted that this market is moving “much quicker than the other markets.”
The two-day RLC Global Forum brought together more than 2,000 global leaders, policymakers, and innovators from over 40 countries over the two-day event to define the next chapter of growth across retail, consumer, and lifestyle industries.
