The United Arab Emirates is leading the region in readiness for artificial intelligence, according to a report released by the World Bank on Thursday. The report highlights the rapid growth of startups and investment financing, accompanied by high levels of digital payment adoption and e-government services, making the UAE one of the top countries in the UN e-government development index.
In 2017, the UAE became the first country to appoint a Minister of Artificial Intelligence and launched the “UAE National Artificial Intelligence Strategy 2031.” This includes significant investments in the sector from the company G42, backed by Mubadala Investment, which plans to invest tens of billions to expand its operations in the United States. Additionally, MGX is set to invest around $7 billion into the “Stargate” project announced by former President Donald Trump.
Gulf Cooperation Council countries have made significant progress in digital transformation, with increased investment in telecommunications and data infrastructure and a rise in the use of internet and digital government services. This shift is seen as a strong driver for the region’s economic diversification plans, allowing countries to harness the benefits of artificial intelligence while also facing labor market disruptions and environmental challenges, as noted by the World Bank in its report.
The World Bank confirmed that Gulf states have achieved remarkable advances in digital transformation, boasting strong telecommunications networks with 5G coverage exceeding 90%, as well as widespread fiber-optic connectivity. There are also major investments in data centers and high-performance computing, especially in the UAE and Saudi Arabia.
Gulf nations are showing high scores in digital regulation and readiness, cybersecurity, and digital skills, with more than 80% of the population possessing basic digital skills across most countries. The UAE and Saudi Arabia are particularly advancing in advanced skills and graduates in science, technology, engineering, and mathematics (STEM), according to the report.