According to the International Monetary Fund (IMF), the UAE AI Readiness is one of the strongest in the Gulf region. Moreover, the IMF also praised the nation for its proactive investment in artificial intelligence, digital infrastructure, and education. Hence, it positions the UAE for long-term, sustainable growth and innovation-driven economic resilience.
Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, highlighted that the UAE, Saudi Arabia, and Qatar are among the best in terms of AI readiness. Moreover, the latest forecast of the IMF projects 3.2% growth for MENA in 2025 and 3.7% in 2026, due to strong oil production and ongoing reforms.
On the other hand, the IMF expects 4.8% GDP growth in 2025 for the UAE due to building on an estimated 4.0% expansion in 2024. In addition, it is a figure significantly higher than the global coverage.
UAE AI Readiness: AI and Technology Set to Power the Next Growth Cycle
While speaking at a media briefing in Dubai, Azour highlighted that the next phase of the Gulf economic growth will be driven by investment in AI, data centres, and the internet of the future. Moreover, he noted, “These investments are expected to yield long-term results in terms of growth and increased investment opportunity.”
He added that the influence of AI extends beyond the tech industry. Plus, he said, “AI is going to change the way we work. 40 percent of the labor will be affected.” Plus, he highlighted that affordable access to technology for youth, startups, and SMEs is crucial to fostering inclusion and innovation.
In addition, Azour also highlights the important role of education and skill-building in ensuring AI readiness across the region. Plus, he remarked, “Investment in education and talent is important. Readiness must be extended beyond the top three countries so others can compete effectively”.
Diversification and Reforms Anchor UAE’s Economic Resilience
The IMF attributed the resilience of the United Arab Emirates (UAE) to years of economic diversification and structural reforms. Azour said, “The GCC countries have withstood many shocks—from the COVID-19 pandemic to oil price volatility—due to these reforms.”
Despite financial stability, Azour motivated the Guld government to maintain fiscal prudence. Hence, he notes a slow decline in surpluses. He said, “It is important to continue diversification of revenue outside oil and anchoring macroeconomic policies within medium-term frameworks.”
Favorable Financing Conditions and Evolving Trade Alliances
The capital market of the Gulf is strong due to regional bond issuances reaching $48 billion by September 2025, which surpasses the full-year total of 2024. Plus, Azour said this shows investor confidence in the region. However, he warned that debt reduction and fiscal discipline remain key to maintaining long-term stability.
The IMF also alerted that the Gulf economies are benefiting from shifts in global trade routes and forming new regional partnerships. Hence, Azour said, “he region has diversified both imports and exports and strengthened its alliances.” Moreover, he said that boosting the business nature will help attract more foreign investment and skilled professionals.
He said, “These are emerging middle powers that could play a greater role in AI and technology.” Here, he refers to the UAE and its GCC peers.
Education and Regulation: Building a Sustainable AI Future
Azour assured that the financial system of the UAE is sound and well-regulated due to strong capital buffers to manage any potential shocks. Moreover, he repeats the importance of education many times by saying, “Education, education, education—it is essential to build the skills the region needs.” He concluded, “Good performance in non-oil sectors, diversification, and readiness for AI are laying the foundation for the future”.
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