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MUSCAT: The Artificial Intelligence sector could potentially contribute up to $320 billion to the MENA economy, according to AI software company SenseTime MEA.
Speaking to the Observer on the sidelines of Oman AI Summit, which concluded in Muscat last week, the team highlighted the transformative potential of the AI sector. “In terms of economic impact, according to projections, AI could potentially contribute up to $320 billion to the Mena economy. The reason behind this is AI’s ability to reduce costs, increase efficiency, and, in some cases, help create new revenue-generating streams. From an economic perspective, there is significant potential across the entire Mena region,” shared Tina Wu, Product and Research Director of SenseTime MEA.
According to the Chief Technology Officer of SenseTime MEA, Shuai Yi, AI is set to revolutionise various key industries. “Healthcare will see AI revolutionize diagnostics, patient management, and telemedicine, addressing the region's growing demand for accessible medical services. The energy sector, particularly in oil, gas, and renewables, will leverage AI for production optimization and resource management. Smart cities are another major focus, with AI enabling advanced urban planning, traffic management, and public safety solutions. Additionally, industries like transportation, tourism, and education stand to benefit from AI-driven innovation and personalization,” he shared.
The company attributes the growth of the sector in the region to strong government-led initiatives. “I think there are several key factors driving AI growth here. Number one is government initiatives in Mena. As we can see, in Saudi Arabia, they have Vision 2030. The UAE has the National AI Strategy 2031, and in Oman, we have Vision 2040. These strong government initiatives are greatly fostering the development of AI, as well as the establishment of AI ecosystems. Additionally, these government initiatives encourage increasing investment in technology infrastructure, innovation, and beyond,” Wu added.
Another key driver is the emergence of a tech-savvy generation. ”The presence of a young, tech-savvy generation that is creating increasing demand for AI-enabled solutions. Many companies and regions have already started their digital transformation, making it the right time for AI integration,” she noted.
However, the region still faces various challenges. According to Tina Wu, infrastructure readiness is one of them. "In some regions, infrastructure development isn’t fully mature yet. For example, data centers and Arabic-language data collection still need improvement."
Furthermore, Wu shared that varying data protection laws and regulations can potentially slow down. So can a talent shortage. "There is a lack of AI talent in some regions, along with insufficient AI-focused educational programmes, creating a talent gap in the market."
Significantly, Joseph Zhang, Associate Director of SenseTime MEA, has noted Oman’s interest in AI education. “During our trip, we noticed that more people in Oman are interested in AI education than in other countries in the region. We believe that is an excellent approach. Cultivating a new generation that is AI-savvy will help address the fundamental talent shortage and make AI adoption smoother. This emphasis on education is a great strategy.”
Nonetheless, the company firmly believes that the challenges present great opportunities, describing the market as “fresh and ready for disruption.”
The Riyadh-based enterprise is a joint venture between the Saudi Public Investment Fund and SenseTime Group. Joseph Zhang stated, "We primarily focus on three areas: enhancing people's experiences in entertainment venues through AI-driven systems. This includes venue operation systems, digital imaging systems, and crop management systems. Improving work efficiency through AI involves smart city planning, smart building monitoring systems, and smart office solutions. Focusing on the delivery side is also crucial. At the end of the day, delivery is the key part. Being able to deliver solutions quickly and operate in an agile manner is very important."
He further explained, "In this region, we aren’t just selling standard products; more importantly, we tailor solutions to customers' demands. Many times, we co-create solutions based on customer needs to ensure they get exactly what they require. Additionally, we closely collaborate with AI authorities in the region to explore industry standards and areas for improvement, helping to advance the overall AI ecosystem."
Wu added, "When we entered the Middle East region, we partnered with local organizations to understand their needs quickly. We’ve also been heavily investing in local talent development, working with governments, public and private sectors, and academia to bridge some of these gaps. Additionally, we emphasize the 'privacy by design' principle to ensure user data is protected from day one. While these challenges exist, they come with immense potential and opportunities."
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