The Potential Economic Impact of Artificial Intelligence in the UAE and Saudi Arabia

Running Head: Summary of article 1
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Summary of article 2
United Arab Emirates (UAE) and Saudi Arabia are two countries that are well endowed
with large quantities of hydrocarbon reserves which grant them a significant place in the world
market as far as global and regional geopolitics are concerned. These two nations are dominated
by natural gas and oil as resources which contribute to about a third of their Gross Domestic
products (GDP). Although UAE and Saudi Arabia are endowed with abundant oil and natural
gas, they have failed to realize diversity in their economies, and as well their productivity
growths have been slow. The above is attributed to low levels of technology while extracting and
processing these abundant hydrocarbon reserves. Besides, the ever-fluctuating oil prices on the
world markets have also failed the two nations' attempts to realize desirable productivity growth
and diversity of their economies. To enhance the productivity and diversity of their economies,
UAE and Saudi Arabia are now adopting Artificial Intelligence to utilize available opportunities
in the world markets. Economist Intelligence Unit (EIU) estimates that UAE's and Saudi Arabia's
GDP growth rates are likely to average around 3.5% and 2.2% respectively between 2018 and
2030 during the use of AI (The Economist Intelligence Unit, 2019). The above projections by
EIU are depicted on the graph below.

Summary of article 3
Both nations have devoted strategies and policies to help make use of artificial intelligence in the
exploitation of their abundant oil and natural gas resources. UAE made an appointment of a
minister for artificial intelligence and as well as publicized a national artificial intelligence
strategy. On the other hand, Saudi Arabia has stipulated a plan to have a city which is powered
by artificial intelligence in the desert. To execute the above plan, Saudi Arabia has set aside
US$100bn for establishing capital ventures that are focused firmly on artificial intelligence. Most
importantly, artificial intelligence and economic growth have a positive relationship in that a rise
in the use of artificial intelligence results in increases in economic growth. Also, absence or low
levels of artificial intelligence usage imply low levels of economic growth (The Economist
Intelligence Unit, 2019).
According to EIU, UAE and Saudi Arabia are both relying on private consumption for
enhancing their steady growths in GDPs. As such, half of Saudi Arabia's GDP and a third of
GDP growth in UAEs are attributed to private consumption. Public expenditure is another
element which contributes about a quarter to the growth of Saudi Arabia GDP. In regards to the