By: Nur El-Mahrakawy

John McCarthy defined Artificial Intelligence (AI) as “the science and engineering of making intelligent machines.” Already, AI is starting to change the way we live, work, and interact with the world around us and it is transforming industries all across the Middle East and North Africa (MENA) at a rate that’s hard to ignore. According to a PWC report, AI’s contribution to the region’s economy is projected to grow by 20% to 34% annually, with the UAE and Saudi Arabia leading the way. By 2030, MENA is expected to capture 2% of global AI benefits—equivalent to a staggering $320 billion. This shift is happening as governments and businesses face a critical choice: embrace the technological disruption of the Fourth Industrial Revolution or risk being left behind? 

Governments and businesses are already taking action. The UAE was the first to release its AI strategy in 2017 followed by Egypt in 2019. Currently, 7 countries out of 19 in the MENA region have published their national AI strategies, including the Qatar, Saudi Arabia, Oman, Tunisia, and Jordan. Our Knowledge Hub is full of information on the national progress on AI strategies and readiness. It tracks the progress of several MENA countries including Egypt, Tunisia, Jordan, Palestine, and Morocco, which you can visit to learn more about the latest developments.

While it is undoubtable that AI will revolutionize many industries, we must ensure that the region’s workforce are ready for the changes ahead.

AI Trends Across MENA

The rise of AI is evident in several parts of the MENA region, with the UAE, Saudi Arabia, and Qatar demonstrating the strongest commitment towards the development and implementation of AI technologies. In fact, compared to the rest of the MENA region, all 3 placed within the top 50 countries in the world for innovation on the 2024 Global Innovation Index. AI holds great promise across many industries. Research by the International Data Corporation (IDC) argued that AI had the potential to revolutionize the financial sector, improve public services, enhance healthcare systems across the region, and drive growth in manufacturing across the region. 

However, outside the Gulf states AI adoption has been slower due to many factors such as infrastructural gaps and access to skilled labor.

Humans Need Not Apply: The Impact of AI on Jobs

As exciting as the potential of AI is, there’s no denying the challenges this will present for the workforce. In 2018, McKinsey estimated that by 2030, 45% of existing work in several MENA countries - including Bahrain, Egypt, Kuwait, Oman, Saudi Arabia, and the United Arab Emirates - could be automated. This has sparked debates about what this means for the future of work.

The technical activities that machines can outperform humans in is expanding rapidly, affecting all workplaces. Workers who have a highschool education or less are particularly vulnerable to the shocks associated with automation. Expat workers in industries such as services, administration, government, manufactory, or construction could see their jobs displaced by automation. 

Yes, the risk is real and without careful planning, we might find ourselves facing a future job market that the workforce is unprepared for. 

The good news is that this is not inevitable.The future of AI in MENA is still being shaped. In the MENA region, where youth unemployment rates remain the highest in the world, there is an opportunity to be seized. The response and steps that policymakers, educators, businesses, and civil society will take will determine whether the impact of this expensive technological transformation will support the growth of local economies or further inequalities between societies. 

A Collaborative multi-stakeholder approach is essential for ensuring that the workforce is prepared and to ensure that the benefits of AI are accessible to all.

Shaping the Next Generation of AI Talent

As the demand for AI talent continues to rise, academic institutions in the MENA region have an important role to play, and there are a couple of universities already heading the call. For example, the King Abdullah University of Science and Technology in Saudi Arabia is already running several successful programs to train the next generation of AI experts and is preparing youth for the AI-driven future of work through its Center of Excellence for Generative AI (GenAI). Similarly, the UAE’s AI-dedicated Mohamed Bin Zayed University of Artificial Intelligence and AI programme in partnership with the University of Oxford is working to create top AI talent. However, these efforts must go beyond higher education. There is a compelling case for curricula reform to introduce basic AI education as early as primary school years.

In financially constrained countries where governments do not have the resources to invest in training, civil society organizations should set in to fill this gap to prepare youth with the knowledge needed to succeed in high-growth industries where AI will be a critical skill. Youth training nonprofits such as Education for Empowerment (EFE) are investing in AI training for unemployed and out-of-school youth, giving them a leg-up in their job search. Yet despite the fact that training opportunities in AI are growing, most are still exclusively offered in English. This required a parallel investment in English-language proficiency to enable disadvantaged populations to access these opportunities. 

The role of the private sector is just as crucial in shaping the future workforce. It’s not enough for companies to hire people - they must help create opportunities for hands-on learning. This could be accomplished through apprenticeships, internships, and mentoring programs that give students practical experience while they are still in school. Businesses should also work alongside educational institutions to help design curriculums that focus on the practical skills needed to succeed in today’s job market. 

Public-private partnerships, where governments and businesses design training programs that focus on skill development, can also be a suitable model for preparing students for an AI-driven economy.  A great example of this is the International Applied Technology Schools (IATS), in cooperation between the Ministry of Education and the Workforce Egypt project, funded by the United States Agency for International Development (USAID) and the relevant partners from the public and private business sectors, under the slogan “ “Your dream is our dream” in the Education City in 6th of October, where students combine classroom learning with hands-on experience in real job settings, is a great example of this kind of initiative. 

The path forward is clear: a multi-stakeholder approach that brings together governments, educators, businesses, and civil society together is essential to ensuring that no one is left behind in the AI revolution. The MENA Observatory recently concluded a webinar focusing on the African Union AI Strategy and the need for multi-stakeholder collaborations for the responsible development and implementation of AI across the continent. Read more about the key takeaways from the event here.