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2h ago

World Bank Urges Gulf to Fast-Track AI Reforms as UAE, Saudi Lead 2025 Growth

The lender urges SME AI adoption, workforce reskilling, regional cooperation to cut reliance on oil.

The World Bank described the 2025 forecast as evidence of continued resilience and progress on long-term reform
The Dubai skyline. The expansion of non-hydrocarbon exports is well under way in the Gulf, with the UAE leading the charge in diversification, the World Bank said. AFP

Overview

  • The report projects 2025 GDP growth of 4.8% for the UAE and 3.8% for Saudi Arabia, with Qatar at 2.8% supported by North Field LNG expansion.
  • Rapid digital build-out — with over 90% 5G coverage and expanding data-centre and high-performance computing capacity — is accelerating AI adoption, led by the UAE and Saudi Arabia.
  • Women’s participation in STEM surpasses the global average in the Gulf, which the World Bank says strengthens the region’s digital competitiveness.
  • Despite diversification gains, the Bank warns fiscal and external balances remain tied to hydrocarbon receipts, with softer 2025 oil prices pushing up pressures.
  • Policy priorities include SME support for AI adoption, large-scale reskilling, stronger innovation ecosystems, environmental safeguards, and regional AI centres to build a unified digital market across MENA, Afghanistan and Pakistan.