GCC Leads Global Growth in AI Investments, Powered by UAE and Saudi Arabia
The Gulf Cooperation Council (GCC) economies are projected to experience the world’s fastest growth in artificial intelligence (AI) spending, with the UAE and Saudi Arabia spearheading the region’s advancements. Industry reports suggest AI could contribute up to $150 billion—representing 9% of the GCC’s combined GDP—fueled by transformative technologies such as Generative AI (GenAI).
Ram Ramachandran, Senior Vice President at Tech Mahindra for the India, Middle East, and Africa region, highlighted the GCC’s pivotal role in global AI adoption. “By 2025, we expect substantial investments in AI infrastructure, enhanced partnerships with global tech leaders, and the development of advanced data security frameworks to establish the region as a leader in sustainable AI innovation,” he said.
In addition to AI, emerging technologies like blockchain, the metaverse, Web3, and digital twins are reshaping industries across the Middle East. These advancements are creating smarter cities and improving sectors such as education and healthcare.
Ramachandran also emphasized the importance of aligning innovation with collaboration, calling for industries to unite and address global challenges. “As we enter the intelligent age, embedding accountability, transparency, and ethical oversight into innovation ecosystems will be critical for aligning technology with societal needs,” he said.
The discussions at the World Economic Forum’s annual meeting in Davos are expected to focus on AI’s transformative potential, geopolitical stability, economic resilience, and environmental sustainability. Ramachandran underscored that Generative AI could revolutionize workflows, transforming up to 40% of working hours across modern industries.
He added that businesses must adopt sustainable practices to align with global climate goals, ensuring long-term viability and value creation. “Driving meaningful change requires a combination of visionary leadership, technological tools, and a collaborative culture,” he concluded.
