World Economic Forum on How To Build Intelligent Economies in the MENA Region

The World Economic Forum (WEF) has outlined four key strategies for the Middle East and North Africa (MENA) to build intelligent economies amid a rapidly evolving global landscape.

The WEF report highlights that the MENA region faces several economic challenges that could be addressed by leveraging digital technologies. The report emphasizes the need for MENA countries to integrate artificial intelligence (AI), the Internet of Things (IoT), and blockchain into various sectors of their economies.

By adopting these advanced technologies, local enterprises in the region are expected to see productivity gains while also tackling other economic and health-related issues.

To effectively integrate these technologies, the WEF suggests that MENA should first capitalize on its existing strengths. The region benefits from low-cost electricity and vast amounts of land, which could be instrumental in establishing new data centers to support digital transformation efforts.

Given its strong bilateral ties with global superpowers, the WEF argues that the MENA region can leverage partnerships with Europe, the U.S., and China to advance its critical industries.

The second major step for MENA countries is to implement AI in their operations without bias while ensuring inclusivity. This would require localizing large language models (LLMs) to reflect the region’s cultural context, with the report citing initiatives from the United Arab Emirates (UAE) and Saudi Arabia as examples.

The third strategy proposed by the WEF is to pursue high-profile public-private partnerships to alleviate the burden on national governments. Several Gulf countries have already secured significant investments from leading tech companies such as Microsoft and Amazon.

The report stressed that the scale of the changes underway is too vast for governments to handle alone, stating that the private sector must be a collaborative partner in this transformation to create a competitive advantage in the evolving global market.

The final strategy involves fostering greater integration and regional collaboration. The WEF notes that only 18% of trade within the MENA region is intra-regional, with much of the technological innovation occurring in isolation, thereby widening the development gap between countries.

A report from the International Data Corporation (IDC) projects that AI spending in the Middle East could reach $7.2 billion by the end of 2026, including Turkey and Africa. This growth represents a compound annual growth rate (CAGR) of 37% over the forecast period.

Much of this spending will likely come from the UAE and Saudi Arabia, which are driven by substantial government-funded projects and a dynamic private sector.

The report highlighted that the UAE is making notable investments in infrastructure and workforce development, promoting AI adoption, establishing regulatory frameworks, and nurturing a homegrown AI ecosystem to enhance its global competitiveness in the field.

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