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Views /Opinion

Technology and AI in 2025: An opportunity for Arab pioneering?

Dr. Khaled Walid Mahmoud

05 Jan 2025

The world today is undergoing an unprecedented transformation driven by the technological and artificial intelligence (AI) revolution. Major technology companies have become the driving force behind economic and social changes. By the end of 2024, the market value of the top ten tech companies surpassed $20 trillion, reflecting their dominance in the global economy and their role in reshaping markets and consumer choices.

In this context, AI has emerged as one of the most prominent areas of technological investment, showing no signs of slowing down. According to a report by GlobalData, the AI market is projected to reach $909 billion by 2030, with a particular focus on generative AI as a key growth area. Additionally, a recent report by Crunchbase highlighted that investments in AI startups rose to $24 billion in the second quarter of 2024, more than double the investment recorded in the first quarter of the same year.

This surge is not limited to startups but extends to critical sectors such as healthcare, where AI contributes to improved diagnostics and treatment planning, as well as manufacturing, where it enhances production processes and supply chain management.

Beyond AI, quantum computing represents the next technological revolution. This technology relies on quantum physics principles to process massive amounts of data at unprecedented speeds, enabling breakthroughs in fields such as drug development and energy efficiency. The market value of quantum computing is expected to reach $4.375 billion by 2028. However, it also presents significant cybersecurity challenges, as it could potentially decrypt currently protected data.

On the other hand, big data forms the backbone of these transformations, serving as a critical resource for AI and quantum computing to make accurate and rapid decisions. With the big data market expected to reach $400 billion by 2030, companies and nations face challenges related to data privacy and ethical use.

Despite the rapid growth in AI and the flourishing digital economy, the economic gap between developed and developing countries continues to widen. Reports such as the “AI Readiness Index” by the International Monetary Fund reveal that countries like the United States, Singapore, and Denmark lead global rankings due to integrated strategies built on four main pillars: digital infrastructure, human capital, innovation policies, and ethical governance.

In contrast, the Arab world remains lagging in keeping pace with this technological revolution. While some countries, particularly in the Gulf, have begun adopting ambitious strategies to develop AI and integrate it into their economic and investment plans, most other nations face challenges such as weak technological infrastructure, low research and development spending, and a shortage of qualified talent.

However, the Arab world holds significant potential if harnessed correctly. Establishing strategic partnerships with major tech powers, as seen with Qatar, the UAE, and Saudi Arabia, can facilitate knowledge transfer and localization. Additionally, encouraging innovation, investing in infrastructure, and creating joint regional research centers can help bridge the digital divide.

In conclusion, the continued advancement of generative AI, quantum computing, and big data is increasing the gap between nations that invest seriously in these fields and those that merely act as passive recipients. Despite its structural challenges, the Arab world has immense potential if it invests in technical education, scientific research, and international partnerships.

The ability of Arab countries to become key players in the digital economy depends on political will and a commitment to ambitious plans. The opportunity to change the rules of the game is now within reach, but the question remains: Can the Arab world overcome the digital divide and leverage this era to its advantage? The answer is not just a choice but an essential requirement for a better future.