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How AI Is Shaping The Future Of The Middle East

by THEFUTURE.TEAM

February 3, 2025

The Middle East is undergoing a major transformation driven by Artificial Intelligence (AI). What once seemed like a futuristic concept is now a powerful force reshaping economies, industries, and daily life. As AI accelerates across the region, its potential to reshape sectors is becoming increasingly apparent.

IDC forecasts AI spending in the Middle East and Africa (MEA) to grow at an impressive compound annual growth rate of 29.7%, with the region expected to reach $6.4 billion by 2026. McKinsey’s estimates suggest AI could generate up to $150 billion in value for GCC countries, contributing more than 9% to their GDPs.

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To seize this opportunity, organizations across the region must act now, embracing AI and incorporating it into their operations to stay competitive and drive future growth.

A Region Ready For Change

Across the Middle East, governments are incorporating AI into their national strategies. The UAE, for instance, is a leader in AI adoption, with initiatives like the UAE National AI Strategy 2031 and Abu Dhabi’s Advanced Technology Research Council (ATRC) pushing AI research and innovation. These initiatives aim to make the UAE the world’s first fully AI-native government.

Saudi Arabia’s Vision 2030 and various AI projects in Abu Dhabi and Dubai are also redefining urban infrastructure and service delivery. These include autonomous transportation programs and AI-driven healthcare solutions. Such projects are transforming cities, making them smarter, more efficient, and more sustainable.

Transformative Potential For Organizations

AI’s real impact lies in its practical applications. For example, AI is being integrated into government services to enhance efficiency and improve customer experiences, transforming both public and private sector operations.

In addition, AI is helping various industries optimize their operations and customer engagement. With AI tools like chatbots, predictive analytics, and data-driven decision-making, companies are improving efficiency and driving new forms of value across sectors.

Overcoming Barriers To AI Adoption

Despite its promise, AI adoption presents several challenges. Organizations in the region often struggle with outdated infrastructure, inconsistent data, and a shortage of skilled AI professionals. To overcome these obstacles, businesses must invest in robust digital infrastructure and scalable AI solutions.

There is also a significant talent gap in the Middle East when it comes to AI. This underscores the importance of investing in education and training programs to cultivate local expertise and drive long-term innovation.

Moreover, data governance is key to ensuring that AI models work effectively. Proper data management is necessary to produce reliable, accurate results from AI systems.

Looking To The Future

As AI continues to advance, it is expected to become even more integrated into the region’s daily life over the next five years. Companies must align their AI strategies with their business goals to ensure sustainability and long-term success.

The Middle East is well-positioned to become a global leader in AI, with the UAE leading the charge. However, this requires collaboration among governments, businesses, and tech providers to foster inclusive growth that benefits all sectors.

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Cyprus Tax-To-GDP Ratio Rises To 36.3% In 2025

by THEFUTURE.TEAM

October 30, 2026

Cyprus’ tax-to-GDP ratio edged up to 36.3% in 2025, from 36% in 2024, remaining below the European Union and euro area averages, according to Eurostat.

Across the EU, the ratio rose to 40.7% from 40.2%, while the euro area average increased to 41.3% from 40.7%.

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EU Tax Revenues Reach €7.68 Trillion

The tax-to-GDP ratio measures revenue from taxes and net social contributions as a share of gross domestic product. It provides an indication of public revenue relative to the size of an economy, although national tax systems and social contribution rules vary.

EU governments collected €7.68 trillion in taxes and social contributions in 2025, an increase of €401 billion compared with the previous year.

France Records Highest Ratio

France had the EU’s highest tax-to-GDP ratio at 46%, followed by Belgium at 44.7%, Denmark at 44.3% and Austria at 43.9%.

At the other end of the scale, Ireland recorded the lowest ratio at 22.7%. Romania followed at 29.3%, Malta at 30.3% and Bulgaria at 30.6%.

Ratios Increase In 19 Member States

The tax-to-GDP ratio rose in 19 EU countries in 2025. Germany recorded the largest increase, climbing from 40.3% to 41.4%. Malta’s ratio rose from 29.3% to 30.3%, while Spain’s increased from 37.2% to 38.1%.

Eight member states recorded declines. Sweden saw the largest fall, from 41.8% to 41.2%, followed by Latvia, where the ratio dropped from 34.9% to 34.2%.

Cyprus’ 0.3-percentage-point increase was more modest than some of the changes elsewhere in the bloc. Its ratio nevertheless rose alongside the EU and euro area averages, reflecting a broader increase in tax and social contribution revenue relative to economic output.