Today's Edition
ISIDORA CIRIC (ABU DHABI)
Strategic investment in AI and climate resilience could unlock $232 billion in added GDP for the Middle East by 2035, with the UAE positioned as the region’s prime mover in the next wave of tech-enabled, sustainable economic growth, according to PwC.
The Value in Motion report, released on Monday, projects that, with timely policy decisions and investments, the region’s total GDP could reach $4.68 trillion within the next decade.
It models three possible trajectories for the Middle East’s economic future, depending on how governments respond to accelerating AI adoption, climate risk and shifting trade flows, with outcomes ranging from cautious growth to major economic gains or missed potential.
Moussa Beidas, Partner and Ideation Lead at PwC Middle East, said the UAE’s early investment in digital infrastructure and clear national vision give it a strong edge in leading the region towards the optimal scenario.
“Our economic modelling indicates that bold, strategic action on AI and climate can transform the Middle East’s economic trajectory, unlocking value in the hundreds of billions of dollars. The UAE, with its world-class infrastructure and clear national vision, is uniquely positioned to lead this transformation and set the benchmark for the region,” he told Aletihad.
PwC identifies AI integration and climate risk management as dual imperatives. While widespread AI adoption could deliver an 8.3% GDP boost through productivity gains, failure to address climate threats could reduce growth by up to 13.9 percentage points. Countries that combine clean energy leadership with digital infrastructure are expected to benefit most.
Throughout the report, the UAE is repeatedly cited among the countries that are “already exemplifying this momentum and moving beyond their traditional boundaries” to unlock new sources of value.
In other words, traditional sectors in the region are being reconfigured into what PwC calls “domains of growth”- interconnected ecosystems redefining how societies move, fuel, care, and compute. These new economic structures are key to the $4.68 trillion projection, replacing static industry models with more dynamic, tech-enabled ones.
In one such example, PwC highlights Careem’s transformation from a regional ride-hailing service into a multi-functional super app in the UAE, now offering food delivery, payments, and cross-border remittances. Meanwhile, the formation of M42, following the merger of G42 Healthcare and Mubadala Health, is presented as a model for healthtech integration and AI-driven diagnostics.
The report presents these achievements as indicators of how countries across the region are now reorganising their economies around long-term resilience and innovation, priorities that PwC identifies as central to the Middle East’s future competitiveness.
The government’s role is part of that equation. The UAE’s Centre for Government Digital Excellence is referenced as a key institutional mechanism for accelerating public sector digitalisation by bringing global standards into local governance and supporting deeper collaboration with technology providers.
This digital backbone becomes even more important when viewed against the report’s central thesis: that AI and climate readiness will determine the region’s economic future. Both require stable and scalable energy systems, an area where the UAE has made visible progress.
Abu Dhabi’s continuous solar and battery storage facility is mentioned as a milestone in clean energy deployment, while the planned 5 GW AI campus in the capital is used to illustrate the integration of sustainability with next-generation computing.
This strategic alignment is already influencing private sector behaviour. According to PwC’s 28th CEO Survey, 93% of CEOs in the UAE reported adopting generative AI in the past year - the highest share globally.
Climate-related action is, likewise, gaining traction at the executive level. The survey showed that 83% of UAE CEOs have initiated green projects over the past five years. And, nearly half of them reported direct revenue gains, well above the global average of 33%.
Beidas said long-term economic success will depend not just on innovation, but on how quickly countries move from planning to implementation. He pointed to the UAE as an example of this strategic clarity.
“By integrating AI into climate solutions, the country can drive innovation, create new industries and future-proof its economy. This moment represents a rare opportunity to shape a more resilient, inclusive and competitive economic model for generations to come.”
