Artificial Intelligence (AI) has been wired into the economic plans of many GCC countries to the extent that by 2030 it is expected to form 12.4 percent of Saudi Arabia’s GDP and 14 percent of the GDP of the UAE.
In this regard, the UAE, Saudi Arabia and Qatar have demonstrated strong commitment towards the development and implementation of AI technologies. Businesses in these countries have been investing heavily in new technology, supported by governments as early consumers of the technology.
Outside the gulf economies, however, adoption has been slower. The differences in adoption levels are driven by differences in, for example, infrastructure and access to skilled labor, key enabling factors for AI development.
According to a PwC report on the impact of AI in MENA, the Middle East is expected to accrue 2 percent of the total global benefits of AI in 2030. This is equivalent to US$320 billion.
The UAE, Saudi Arabia and Qatar have demonstrated strong commitment towards the development and implementation of AI technologies. Businesses in these countries have been investing heavily in new technology, supported by governments as early consumers of the technology.
In absolute terms, the largest gains are expected to accrue to Saudi Arabia where AI is expected to contribute over US$135.2 billion in 2030 to the economy, equivalent to 12.4 percent of GDP. In relative terms the UAE is expected to see the largest impact of close to 14 percent of 2030 GDP.
On the other side, the annual growth in the contribution of AI is expected to range between 20-34 percent per year across the region, with the fastest growth in the UAE followed by Saudi Arabia.
The magnitude of the impact expected in these two economies is unsurprising given their relative investment in AI technology compared to the rest of the Middle Eastern region – both countries place within the top 50 countries in the world on the Global Innovation Index 20173 in terms of their ability to innovate and the outputs of their innovation.
Bridging the Market-Skills Gap
The impact of AI could be even larger if governments and companies continue to push the boundaries of innovation and implementation of AI across businesses and sectors.
However, the region’s sector still lacks some of the necessary skills, particularly in the fields of data scientist and machine learning engineer.
Data Scientist and Machine Learning Engineer are among the top 5 developing high demand positions in MENA countries, according to LinkedIn. However, the main barrier to the use of new technology, according to 86 percent of MENA organizations is a lack of local skills.
Workers in sectors like manufacturing, transport, and warehousing, where routine tasks are the norm, are most at risk of being replaced by AI. While those involving tasks with human interaction like the arts, entertainment, recreation, healthcare and education can breathe easier with a lower automation potential ranging from 29-37 percent.
AI is currently fueling many industries in the region, according to Christophe Zoghbi, a co-founder of ZAKA, an Arab community-driven AI startup designed to be an inclusive guide for organizations and individuals into AI. These industries include construction and manufacturing, energy, utilities and resources, healthcare, education, financial, professional, administrative services, retail, and transport and logistics.
However, the issue that the industry is currently facing in the region is a lack of practical skills among graduating students and working professionals looking for opportunities in the industry.
Furthermore, many businesses do not truly understand this technology or how it can benefit their operations; as a result, the ZAKA community is addressing this issue by providing an online platform that enables individuals from the MENA region to gain market skills in AI, develop solutions with mentorship, and connect with job opportunities.
“We offer a variety of educational programs to assist students and professionals in gaining applied hands-on practical AI skills, and we assist our graduates in connecting with hiring organizations for job placement,” Zoghbi told TRENDS.
“Our current target clients are graduating students from technical majors like computer science and engineering, as well as working professionals in the IT sector,” he continued. We basically assist anyone with a technical background in making the shift into the area of AI.”
“Our programs were designed with market needs in mind, which is why we focus on bridging the gap between university theory and industry needs.” Participants in our programs work on projects to tackle real-world problems using real datasets,” he added.
AI in the labor Market
Countries in the region will enjoy growth if AI and automation are well embraced, and the workforce is equipped with the right skills to take advantage of this transformation.
According to a study released by consultancy McKinsey and Company, 45 percent of jobs in the Middle East were technically automatable, translating into 20.8 million full-time employees and $366.6bn in wage income.
Workers in sectors like manufacturing, transport, and warehousing, where routine tasks are the norm, are most at risk of being replaced by AI. While those involving tasks with human interaction like the arts, entertainment, recreation, healthcare and education can breathe easier with a lower automation potential ranging from 29-37 percent.
ZAKA is currently operating across MENA with students and companies joining their programs to enhance their skills from Saudi Arabia, UAE, Qatar, Kuwait, Oman, Lebanon, and others.
Khaldoun Senjab, a participant in the ZAKA AI bootcamps in the UAE, told TRENDS how bootcamps vary from typical college studies.
“In college, students are more concerned with theory than with real experience. ZAKA bootcamps, on the other hand, provide real-world experience that may be applied to a variety of fields, including business, research, and academia. They also provide more guidance and encouragement to pursue something unique than any college can”.
He also emphasized that labor markets need experienced individuals who can handle real-world problems and perform realistic tasks. They want to put their learnings to use in the actual world. That’s where bootcamps like these may help, by addressing the necessary skills to prepare you for such challenges and demands.
According to Saudi participant Nawal Awad Alrajih, the GCC industry for AI and data science is unquestionably rising, particularly in Saudi Arabia.
“Many companies have integrated this technology into their operations, and some GCC countries have established universities dedicated to teaching and training AI technology, such as MBZUAI in Dubai and KAUST in Jeddah, not to mention the Saudi Data and Artificial Intelligence Authority, which works to regulate the data sector and enable innovation, AI, and data science.”
Alrajih stated to TRENDS those Saudi enterprises are competing in adopting AI in an integrated approach to deliver more services and create new products in all fields.
“These businesses want to hire AI professionals with in-depth knowledge of the field who can offer value and grow their businesses in the appropriate way, thus improving the skills of employees and graduates is a must today to keep up with market demand.” So, let’s face it, if you don’t have the necessary AI skills, you won’t be able to get work in this industry”, she added.
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