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A new World Bank AI report indicates that artificial intelligence could raise productivity for 13% to 20% of jobs across the Middle East and North Africa, while threatening less than 10% with direct automation. According to reporting by economyplusme.com, Saudi Arabia and the UAE lead regional efforts in advanced computing infrastructure and foundational model development.
Regional Leadership and Infrastructure Investments
Saudi Arabia and the UAE are the only two countries in the region ranked among the top 25 globally in artificial intelligence development and high-performance computing capabilities. Both nations have directed substantial capital toward building data centers and digital infrastructure, positioning them to build technology rather than merely consume it.
However, the analysis notes that possessing computing power alone does not guarantee economic success. Significant value emerges only when enterprises integrate machine learning into supply chains, production workflows, and core investment decisions.
Findings from the World Bank AI Report
The World Bank AI report highlights several structural hurdles currently facing regional markets. Despite having more than 500 million Arabic speakers worldwide, Arabic represents under 1% of the global training data used for large language models, with spoken dialects especially underrepresented.
In addition, private sector innovation remains limited across several economies in the region. Only 16% of regional companies introduced a new product or service over the past three years, compared to 29% in peer emerging markets. Furthermore, just 24% invested in productive assets, compared to 37% globally, while under a fifth provided formal training in artificial intelligence for their staff.
Talent Concentration and Regulatory Gaps
Technical talent remains heavily concentrated in Gulf economies, creating recruitment pressures for middle-income countries. The analysis suggests regional collaboration, sharing linguistic data, and joint research to lower infrastructure costs across the broader economy.
Legal frameworks present another pressing issue, as many markets lack clear rules regarding data governance, accountability, and ethical deployment. Establishing balanced oversight alongside practical cybersecurity protocols will be necessary to foster commercial confidence.
Adopting Accessible Solutions
To overcome infrastructure limitations in developing markets, the publication recommends deploying small-scale models with low computational requirements. These cost-effective tools can assist critical sectors such as agriculture, healthcare, and public administration without requiring immense computing clusters.
Ultimately, the World Bank AI report concludes that long-term regional competitiveness depends on localizing technology, deepening workplace integration, and retaining specialized engineering talent.
