Skip to content Skip to Search
Skip navigation

AI ‘can solve the problems’ for Middle East digital growth

By Shruthi Nair

The Middle East’s digital penetration stands at 4.1 percent of its overall economy – where “China was 15 years ago”, according to a strategist at Swiss bank UBS. 

A recent technology report published by UBS highlights how the Middle East could be the next digital frontier, and why artificial intelligence could play a pivotal role.

The digital economy constitutes IT and internet economy spending, which includes e-commerce, digital advertising, online gaming, streaming services, ride-hailing and fintech.

“We expect the region’s digital economy to reach $780 billion by 2030 – up from $180 billion in 2022 – so around 20 percent growth per annum,” says UBS equity strategist Sundeep Gantori. 

A large opportunity for the region lies in IT spending, which includes investments in hardware, software, services and cybersecurity, he says. 

Companies, on average, spend four percent of their revenues on IT globally. In the Middle East, it is less than two percent, according to the report. 

Given that the cost of data breaches in the Middle East is among the highest in the world, companies in the region as well as global investors have an opportunity to step up investments in this space. 

And AI should be front and centre in these investments, Gantori says.

Digital talent comes at a premium, and using generative AI to develop apps, for example could reduce the need for programmers.

He believes investing in the right AI platforms can “solve most of the problems the region faces”.

Watch the full video to understand the opportunities for the region to become the next digital frontier.

Latest articles

Sainsbury's has the second-largest share of the UK grocery market, at 15 percent, behind Tesco at 28 percent

Qatar to reduce stake in UK supermarket Sainsbury’s

Qatar’s sovereign wealth fund is selling part of its 15 percent stake in the British supermarket Sainsbury’s as the fund pushes ahead with expansion in the United States and Asia, particularly China and India. Qatar Investment Authority (QIA), the biggest shareholder in Sainsbury’s, is selling £306 million ($399 million) worth of shares in the retailer, […]

Shoppers in Kuwait's Avenues Mall – the IMF says the country needs to encourage private sector employment

Kuwait needs to push reforms for economic growth, says IMF

Kuwait must accelerate the introduction of fiscal and structural reforms that are needed to increase private sector-led growth and diversify its economy away from hydrocarbons, the International Monetary Fund said on Friday. Kuwait’s economy will contract by 3.2 percent this year because of an Opec+ oil production cut, but will grow by 2.8 percent in 2025 […]

Thani Al Zeyoudi, Minister of State for Foreign Trade of the United Arab Emirates, (UAE) speaks during the Skybridge Capital SALT New York 2021 conference in New York City, U.S., September 15, 2021. REUTERS/Brendan McDermid Dr Thani bin Ahmed Al Zeyoudi, the UAE’s minister of state for foreign trade, said 'Malaysia offers substantial opportunity for our exporters, industrialists and business leaders' UAE Malaysia Cepa

UAE and Malaysia sign Cepa to increase bilateral trade

The UAE and Malaysia have signed a free trade deal, bringing the number of deals the Gulf state has agreed with foreign governments to 12. The comprehensive economic partnership agreement (Cepa) will seek to eliminate or reduce tariffs, lower trade barriers, increase private sector collaboration and create new investment opportunities, the two countries said in a […]

Modern buildings in the city center of Riyadh, Saudi Arabia

Riyadh leads Saudi Arabia’s hot property market

Strong population and employment growth in Riyadh is driving a surge in real estate transactions as new properties cannot come on the market fast enough. A dramatic rise in the number of deals in the 12 months to the end of June was also visible in Jeddah and Dammam, according to a report this week […]