UAE, Saudi Arabia to drive region’s AI spending growth at world’s fastest rate

UAE, Saudi Arabia to drive region’s AI spending growth at world’s fastest rate

Spending on AI in the Middle East and Africa to reach $3b this year

The UAE, which is on track to double the contribution of its digital economy to GDP to 19.4 per cent from 9.7 per cent in 10 years, is expected to spend $20 billion in technology. - Shutterstock

Published: Tue 11 Apr 2023, 4:02 PM

The Middle East and Africa region will see the world’s fastest spending growth in artificial intelligence, surging at a compound annual rate of 29.7 per cent over the 2022–2026 period to $6.4 billion in 2026, driven by the UAE and Saudi Arabia, the region’s most vibrant economies.

According to the latest forecast from International Data Corporation, in 2023, spending on AI in the Middle East and Africa (MEA) — including Israel — will reach $3.0 billion, accounting for just 2.0 per cent of the global total at $151.4 billion.

The UAE, which is on track to double the contribution of its digital economy to GDP to 19.4 per cent from 9.7 per cent in 10 years, is expected to spend $20 billion in technology, including IT, AI, robotics and blockchain over the next three years, according to a recent report from the Boston Consulting Group.

“The rapid adoption