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Mon, Dec 23, 2024 | Jumada al-Aakhirah 22, 1446 | DXB
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AI Set for Unprecedented Growth
Transformative power of AI in the UAE industries will help boost the country's economy by 2030
- By
- Mohammad Abu Sheikh/Viewpoint
The economic impact of AI in the Middle East is projected to be substantial, with the Middle East and North Africa (Mena) region expected to see an added value of $320 billion by 2030.
ARTIFICIAL INTELLIGENCE (AI) is a strategic pillar in the UAE's vision for economic diversification, driving innovation and efficiency across diverse sectors. The economic impact of AI in the Middle East is projected to be substantial, with the Middle East and North Africa (Mena) region expected to see an added value of $320 billion by 2030. The UAE is poised to lead this transformation, potentially contributing up to 14 per cent of its gross domestic product (GDP) by 2030.
The oil and gas industry, a cornerstone of the UAE's prosperity, has harnessed AI's power. Abu Dhabi National Oil Company (Adnoc) generated an additional $500 million in value in 2023 alone through optimised drilling and smarter reservoir management. AI continuously evaluates vast amounts of past data, learning and improving its models to enhance efficiency and productivity.
The transportation sector is witnessing a revolution with Dubai Ports (DP World) and Kizad leading the way in AI adoption. By streamlining operations and enhancing logistics, these entities are transforming traditional practices. In the airline industry, Emirates airline employs AI for predictive maintenance and efficient scheduling, targeting potential annual savings of $14 billion. AI's ability to analyse massive datasets and learn from human interactions ensures better decision-making and continuous improvement.
Retail giants like LuLu Group International and Carrefour UAE are redefining shopping experiences through AI. Carrefour's checkout-free stores and LuLu's optimised operations highlight AI's impact on sustainability and efficiency. By evaluating extensive customer data and learning from interactions, AI ensures personalised shopping experiences and improved operational efficiency. The AI in retail market is predicted to exceed $32.27 billion by 2030.
Mohammad Abu Sheikh, CEO and Founder of LocAI.
In education, AI is revolutionising the way learning is delivered. Institutions like Aldar Academies leverage AI to personalise learning experiences, enhancing student engagement and educational outcomes. The AI in education market is expected to surpass $80 billion by 2030, underscoring its transformative potential. AI's capability to analyse student performance data and adapt learning materials accordingly is changing the educational landscape.
The healthcare sector is reaping the benefits of AI's data analysis capabilities for improved patient outcomes. Companies like Cerner Middle East and Africa use AI to analyse patient data, predict health risks, and personalise treatment plans, leading to better outcomes and reduced costs. AI's continuous learning from clinical interactions ensures increasingly accurate and effective healthcare solutions.
AI is also transforming the insurance industry. Companies like Emirates Insurance utilise AI for predictive analytics, optimising pricing strategies, and streamlining claims processing. This automation and enhanced decision-making could potentially reduce operational expenses by up to 40 per cent by 2030. By evaluating large datasets and learning from historical claims, AI helps insurers make better-informed decisions, increasing customer satisfaction.
The real estate sector is seeing AI as a strategic tool. Corporate giants like Emaar, Al Dar, and Nakheel Properties integrate AI for smart city solutions and efficient management of landmark projects. AI’s application in construction leads to improved project management, reduced errors and waste, and increased productivity. The AI in construction market is expected to exceed $80 billion by 2030.
Given the UAE’s arid climate, food security heavily depends on science and technology. AI can revolutionise farming by analysing crop diseases, optimising resource use, and predicting yields. Companies like Pure Harvest Smart Farms are leveraging AI to enhance productivity and minimize waste. The AI in agriculture market is expected to reach around $20.54 billion by 2027, offering significant opportunities for the UAE.
The legal system in the UAE, with multiple jurisdictions like ADGM and DIFC, benefits from AI’s ability to streamline processes and enhance decision-making. Firms such as Al Tamimi & Company are implementing AI to improve accuracy and efficiency in legal services. By processing vast amounts of legal data and learning from case outcomes, AI simplifies complex legal processes and improves service quality.
As the UAE continues to attract global AI and tech firms, the UAE government actively deploys AI for service transformation. Initiatives include the National Programme for AI (BRAIN), a new ‘Chief Executive Officer for Artificial Intelligence’ role, the UAE Council for AI overseeing integration, and the Artificial Intelligence and Advanced Technology Council (AIATC) positioning Abu Dhabi as a global AI hub.
— Mohammad Abu Sheikh is the CEO and Founder of LocAI, an Abu Dhabi-based Emirati Startup in Tech and AI Solutions.
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