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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 Organizations in the region often struggle with outdated infrastructure, inconsistent data, and a shortage of skilled AI professionals.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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Electric Vehicle Leaders Urge EU To Maintain 2035 Zero Emission Mandate

by THEFUTURE.TEAM

September 13, 2025

Industry Voices Emphasize the Importance of Commitment

Over 150 key figures from Europe’s electric car sector, including executives from Volvo Cars and Polestar, have signed a letter urging the European Union to adhere to its ambitious 2035 zero emission goal for cars and vans. These industry leaders warn that any deviation could hamper the progress of Europe’s burgeoning EV market, inadvertently strengthen global competitors, and weaken investor confidence.

Evolving Perspectives Within the Automotive Community

This call comes in the wake of a contrasting appeal issued at the end of August by heads of European automobile manufacturers’ and automotive suppliers’ associations. That letter, endorsed by the CEO of Mercedes-Benz, Ola Kaellenius, argued that a 100 percent emission reduction target may no longer be practical for cars by 2035.

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Discussion With EU Leadership on The Horizon

European Commission President Ursula von der Leyen is scheduled to meet with automotive industry leaders on September 12 to deliberate the future of the sector. Facing stiff challenges such as the rise of Chinese competition and the implications of US tariffs, the stakes for the EU’s policy decisions have never been higher.

Potential Risks of Eroding Ambitious Targets

Industry leaders like Michael Lohscheller, CEO of Polestar, caution that any weakening of the targets could undermine climate objectives and compromise Europe’s competitive edge in the global market. Michiel Langzaal, chief executive of EU charging provider Fastned, further highlighted that investments in charging infrastructure and software development are predicated on the certainty of these targets.

Regulatory Compliance And The Mercedes-Benz Exception

A report from transport research and campaign group T&E indicates that nearly all European carmakers, with the exception of Mercedes-Benz, are positioned to meet CO₂ regulation requirements for the 2025-2027 period. To avoid potential penalties, Mercedes must now explore cooperation with partners such as Volvo Cars and Polestar.

Conclusion

The industry’s unified stance underscores the critical balance between environmental aspirations and maintaining competitive advantage. With high-level discussions imminent, the EU’s forthcoming decisions will be pivotal in shaping not only the future of the continent’s automotive sector but also its global positioning in the race towards sustainable mobility.