Artificial intelligence could be the key to unlocking about $1 trillion in the Middle East and North Africa region by 2030, if used efficiently, research by the World Economic Forum has shown.
Two reports have been published as the WEF and the Government of Dubai host the inaugural Annual Meeting of Global Future Leaders this week.
The three-day event brings together hundreds of leaders and experts from around the world, who will hold intergenerational conversations aimed at tackling the problems of the future.
If the region uses AI for growth in the sustainability and economic sectors, the WEF sees great potential for value by 2030.
Across sectors, this could mean up to $200 billion in sustainable financing through the financial sector, $370 billion in sustainable investment flows enabled by the public sector, $250 billion in long-term asset losses avoided, $90 billion in increased valuation through improved sustainability performance for the energy sector and $100 billion in sustainable projects launched through cross-sector partnerships. Altogether, this is valued at more than $1 trillion.
The region is ripe for this growth, experts say, but it will require cross-sector collaboration.
"Mena has the resources, investment capacity and ambition to become a major centre of AI-led growth,” said Maroun Kairouz, managing director of the WEF.
“Turning that ambition into reality will require innovation across data-centre infrastructure, energy and water systems, and the application of AI to drive sustainability solutions."
Case studies showed how different UAE and regional companies used AI for sustainable initiatives, from First Abu Dhabi Bank in sustainable finance to Adnoc in the energy sector.
The UAE has been at the forefront of AI investment, with the US-UAE AI Acceleration Partnership resulting in an AI campus in Abu Dhabi and a $1.4 trillion investment plan over the next 10 years.
Abu Dhabi is betting big on AI, with a $3.54 billion investment to integrate the technology into the government's public services by next year.
Rising energy and water demands
The second report gave a warning about the consumption of resources such as energy and water through data centres, to power AI infrastructure, especially given that the region faces extreme heat and water scarcity.
Data-centre cooling, which uses large amounts of water, was flagged as one of the priority areas for innovation and the incorporation of sustainable methods for long-term efficiency and resilience.
The opportunities for data centres in the region, however, are plentiful, experts said. Connecting new data centres to the grid can be much quicker in the region, taking between two and five years compared with other mature markets.
“Mena is uniquely positioned to lead the next wave of digital infrastructure by bringing together its energy capabilities, investment capacity and technological ambition,” said Nedaa Almubarak, managing director of SRMG Think.
“The opportunity lies in aligning intelligent infrastructure with efficient resource use to build resilient, sustainable and competitive digital ecosystems that drive long-term economic growth and innovation.”
The Annual Meeting of Global Future Leaders in Dubai continues until Thursday.