Faisal Hamady, Managing Director and Partner at Boston Consulting Group (BCG), told that Artificial Intelligence will generate substantial economic opportunities in the Gulf Cooperation Council (GCC) over the next 5 to 10 years. Key sectors such as energy, smart cities, logistics, and healthcare are expected to benefit significantly from AI advancements.

According to Zawya, Hamady noted that the GCC’s access to extensive proprietary datasets in oil and gas, mobility, and healthcare will provide a competitive edge. This access will support the creation of specialized AI models that can enhance efficiency and drive innovation. He remarked, “As AI adoption continues to expand, these sectors will drive economic growth, strengthen global competitiveness, and position the GCC as a key player in AI-led innovation.”

In the energy sector, AI-powered solutions are projected to enhance operational efficiency, predictive maintenance, and grid optimization, which aligns with the region’s shift towards renewable energy. Hamady stated, “With a strong focus on sustainability, AI will help manage energy distribution, reduce waste, and improve grid resilience.”

Smart city initiatives are already being implemented, particularly in the UAE, where AI is being utilized for traffic management, digital identity systems, and urban planning. Hamady explained that these technological advancements will not only improve urban infrastructure and public services but also establish global benchmarks for AI governance.

Additionally, Hamady pointed out that AI will transform logistics and transportation, which are vital components of the economic diversification agenda in the Gulf. He stated, “Predictive analytics, AI-driven fleet management, and autonomous transport solutions will streamline supply chains, reduce costs, and improve efficiency.” In healthcare, AI is expected to advance medical diagnostics and personalized medicine, reinforcing the region’s ambition to become a leader in medical tourism and advanced healthcare services.

Hamady also compared the GCC’s AI developments with global leaders like the US, China, and the EU, stating that while the GCC is catching up through strategic investments and national AI policies, it still trails behind these pioneers. He highlighted that the UAE and Saudi Arabia have high AI readiness, supported by government-backed strategies and robust data ecosystems.

The interview further explored lessons from China’s DeepSeek R1 AI model, which demonstrated cost-effective AI development and the importance of localized models. This aligns with initiatives in the UAE and Saudi Arabia aimed at fostering Arabic-language AI applications and region-specific technologies.

Hamady concluded with insights on attracting global AI talent to the region, noting that competitive salaries and strategic government initiatives are making the UAE and Saudi Arabia appealing to top professionals in the field. He emphasized the need for a supportive regulatory environment and robust research infrastructure to retain this talent in the long term.

In summary, the GCC has the potential to emerge as a leader in AI-driven economic growth, provided it continues to leverage its unique datasets and attract global expertise.