The global AI market is projected to surpass $1.7 trillion in 2030. Reuters
The global AI market is projected to surpass $1.7 trillion in 2030. Reuters
The global AI market is projected to surpass $1.7 trillion in 2030. Reuters
The global AI market is projected to surpass $1.7 trillion in 2030. Reuters

Spending on AI in Middle East and Africa region 'to soar to $3 billion in 2023'


Alkesh Sharma
  • English
  • Arabic

Spending on artificial intelligence in the Middle East and Africa region will jump to $3 billion this year — accounting for nearly 2 per cent of global AI spending of $151.4 billion, according to a new report by International Data Corporation.

The region is expected to experience the fastest growth rate worldwide over the coming years, with the US-based research company predicting that Middle East and Africa AI spending will surge at a compound annual growth rate of 29.7 per cent to reach $6.4 billion in 2026.

Rapid adoption of cloud solutions by different industries and accelerated digital transformation will drive AI spending over the coming years, the report found.

“Organisations across the region are investing in AI technologies and related software and services to drive greater efficiency through automation and contribute to a more agile operating environment,” said Manish Ranjan, senior programme manager for software, cloud and IT services at IDC for the Middle East and Africa.

Military robots perform at the 16th edition of International Defence Exhibition and Conference in Abu Dhabi. EPA
Military robots perform at the 16th edition of International Defence Exhibition and Conference in Abu Dhabi. EPA

“The effects of the pandemic have fuelled further spending in relation to AI/ML [machine learning] adoption, particularly within the banking and finance, manufacturing, trade, health care and government verticals,” Mr Ranjan said.

The global AI market is projected to surpass $1.7 trillion in 2030, up from $93.5 billion in 2021, expanding at a compound annual growth rate of more than 38 per cent, data from Grand View Research indicates.

Banking, retail, and federal government will be the Middle East and Africa region's biggest spenders on AI this year, followed by manufacturing, according to IDC.

Together, these four industries will account for nearly 44 per cent of the region's total AI spending this year.

However, IDC expects professional services and transportation to be the fastest-growing industries in terms of AI spending over the 2022-2026 period, with annual growth rates of 36.4 per cent and 33.9 per cent, respectively.

Generative AI, one of the most disruptive offshoots of AI technology, holds immense potential, a recent report by Goldman Sachs found.

It uses machine learning to produce content such as text, images, video and audio, and can generate novel content, in the right context, instead of merely analysing or acting on existing data.

Generative AI could drive a 7 per cent (or almost $7 trillion) increase in the global economy and lift productivity growth by 1.5 percentage points over a 10-year period, Goldman Sachs said.

Guests entertained by a robot at Mohamed bin Zayed University of Artificial Intelligence in Abu Dhabi. Khushnum Bhandari / The National
Guests entertained by a robot at Mohamed bin Zayed University of Artificial Intelligence in Abu Dhabi. Khushnum Bhandari / The National

The global generative AI market is expected to reach $188.62 billion by 2032, growing at an annual rate of more than 36 per cent from $8.65 billion last year, according to a report by Brainy Insights.

The North America region dominated the market last year.

Overall, AI growth prospects in the Middle East and Africa region “look very promising as businesses are increasingly investing in AI- and analytics-based solutions to strengthen and expand their customer experiences, build digital capabilities and drive innovation,” Mr Ranjan said.

Augmented customer service agents, fraud analysis and investigation, improved threat intelligence and prevention systems, and sales process recommendation and expansion, are some of the key business use cases where regional organisations are investing more in the market.

However, the region will need more trained professionals to harness the technology, IDC said.

“Numerous challenges will accompany the region's increasing adoption of AI, with the most critical being the lack of skilled resources such as data scientists, data engineers and AI modellers,” Mr Ranjan said.

“However, the region has multiple initiatives in place aimed at upskilling local talent, with organisations in both the public and private sectors establishing partnerships to foster AI- and ML-specific learning,” he added.

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

Brief scores:

Scotland 371-5, 50 overs (C MacLeod 140 no, K Coetzer 58, G Munsey 55)

England 365 all out, 48.5 overs (J Bairstow 105, A Hales 52; M Watt 3-55)

Result: Scotland won by six runs

City's slump

L - Juventus, 2-0
D - C Palace, 2-2
W - N Forest, 3-0
L - Liverpool, 2-0
D - Feyenoord, 3-3
L - Tottenham, 4-0
L - Brighton, 2-1
L - Sporting, 4-1
L - Bournemouth, 2-1
L - Tottenham, 2-1

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Global institutions: BlackRock and KKR

US-based BlackRock is the world's largest asset manager, with $5.98 trillion of assets under management as of the end of last year. The New York firm run by Larry Fink provides investment management services to institutional clients and retail investors including governments, sovereign wealth funds, corporations, banks and charitable foundations around the world, through a variety of investment vehicles.

KKR & Co, or Kohlberg Kravis Roberts, is a global private equity and investment firm with around $195 billion of assets as of the end of last year. The New York-based firm, founded by Henry Kravis and George Roberts, invests in multiple alternative asset classes through direct or fund-to-fund investments with a particular focus on infrastructure, technology, healthcare, real estate and energy.

 

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Company%C2%A0profile
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ICC T20 Team of 2021

Jos Buttler, Mohammad Rizwan, Babar Azam, Aiden Markram, Mitchell Marsh, David Miller, Tabraiz Shamsi, Josh Hazlewood, Wanindu Hasaranga, Mustafizur Rahman, Shaheen Afridi

LIVERPOOL SQUAD

Alisson Becker, Virgil van Dijk, Georginio Wijnaldum, James Milner, Naby Keita, Roberto Firmino, Sadio Mane, Mohamed Salah, Joe Gomez, Adrian, Jordan Henderson, Alex Oxlade-Chamberlain, Adam Lallana, Andy Lonergan, Xherdan Shaqiri, Andy Robertson, Divock Origi, Curtis Jones, Trent Alexander-Arnold, Neco Williams

LEAGUE CUP QUARTER-FINAL DRAW

Stoke City v Tottenham

Brentford v Newcastle United

Arsenal v Manchester City

Everton v Manchester United

All ties are to be played the week commencing December 21.

COMPANY%20PROFILE
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The%20Secret%20Kingdom%20
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Updated: April 12, 2023, 3:30 AM