09.10.2024 Views

Finance World Magazine| Edition: October 2024

This month, we are pleased to present the October edition of Finance World Magazine, focusing on "Embracing the Future of Investment in the Middle East." Our cover story features Eng. Yaser Al Nuaimi, Acting Head of Infrastructure Partnerships at the Abu Dhabi Investment Office, highlights how the Public-Private Partnerships initiative is reshaping the investment landscape of the UAE. In this issue, we explore the integration of AI and personal finance, Dubai's strategic vision for FinTech and advancements made in the healthcare sector, followed by a special feature on "Finance in 2040" - a captivating time capsule of financial predictions.

This month, we are pleased to present the October edition of Finance World Magazine, focusing on "Embracing the Future of Investment in the Middle East."

Our cover story features Eng. Yaser Al Nuaimi, Acting Head of Infrastructure Partnerships at the Abu Dhabi Investment Office, highlights how the Public-Private Partnerships initiative is reshaping the investment landscape of the UAE.

In this issue, we explore the integration of AI and personal finance, Dubai's strategic vision for FinTech and advancements made in the healthcare sector, followed by a special feature on "Finance in 2040" - a captivating time capsule of financial predictions.

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

The Middle East’s journey towards<br />

autonomous technology adoption<br />

is gaining momentum, driven by<br />

ambitious national visions and a growing<br />

recognition of the need for economic<br />

diversification. Countries like the United<br />

Arab Emirates, Saudi Arabia, and<br />

Qatar are leading the charge, allocating<br />

significant resources to develop and<br />

implement autonomous systems across<br />

various sectors.<br />

One of the most prominent areas of<br />

investment is in smart city initiatives.<br />

Dubai, for instance, has set a goal to have<br />

25% of all transportation autonomous by<br />

2030 as part of its Dubai Autonomous<br />

Transportation Strategy. This ambitious<br />

plan is expected to generate economic<br />

revenues and savings of up to AED 22<br />

billion annually. The strategy encompasses<br />

various modes of transport, including<br />

autonomous cars, buses, and drones for<br />

logistics and delivery services.<br />

Saudi Arabia’s NEOM project, a $500<br />

billion mega-city development, is another<br />

prime example of the region’s commitment<br />

to autonomous technologies. NEOM aims<br />

to be powered entirely by renewable<br />

energy and feature advanced robotics<br />

and AI systems in everything from urban<br />

planning to healthcare delivery. The<br />

project is attracting significant investor<br />

interest, with the Saudi government actively<br />

seeking international partnerships<br />

to bring this futuristic vision to life.<br />

From a financial perspective, the autonomous<br />

technology market in the Middle<br />

East presents a compelling opportunity<br />

for investors. According to a report by<br />

PwC, AI alone could contribute up to $320<br />

billion to the Middle East economy by 2030,<br />

accounting for 11% of the region’s GDP.<br />

The UAE is expected to see the largest<br />

impact, with AI potentially contributing<br />

up to 14% of its GDP in 2030.<br />

The robotics market is equally promising.<br />

A study by Research and Markets<br />

forecasts that the Middle East and Africa<br />

robotics market will grow at a CAGR<br />

of 20.4% from 2020 to 2025, reaching a<br />

value of $4.5 billion by the end of the<br />

forecast period. This growth is driven by<br />

increasing adoption in industries such as<br />

manufacturing, healthcare, and logistics.<br />

Investors looking to capitalize on<br />

this trend have several avenues to<br />

explore. One approach is to invest in<br />

local technology startups focusing on<br />

autonomous systems. The Middle East<br />

has seen a surge in tech incubators and<br />

accelerators, with programs like Dubai<br />

Omar Sultan Al Olama, UAE<br />

Minister of State for AI<br />

Future Accelerators and Saudi Arabia’s<br />

Misk Innovation specifically targeting<br />

AI and robotics startups. According<br />

to Omar Sultan Al Olama, UAE Minister<br />

of State for Artificial Intelligence,<br />

Digital Economy and Remote Work<br />

Applications, “AI is not a future vision;<br />

it is our reality now” and the UAE aims<br />

to be one of the global leaders in AI by<br />

2031. These programs not only provide<br />

funding but also offer mentorship and<br />

access to government contracts, making<br />

them attractive prospects for early-stage<br />

investors. Another investment strategy<br />

is to focus on established international<br />

companies that are expanding their<br />

autonomous technology operations in<br />

the Middle East. For example, Uber’s<br />

$3.1 billion acquisition of Dubai-based<br />

Careem in 2019 was partly driven by<br />

the latter’s efforts in developing autonomous<br />

vehicle technology tailored for<br />

the region’s unique driving conditions<br />

and urban landscapes.<br />

The industrial sector presents yet<br />

another opportunity for investors. As<br />

Middle Eastern countries seek to enhance<br />

their manufacturing capabilities,<br />

there’s a growing demand for industrial<br />

robots and automation systems. The<br />

International Federation of Robotics<br />

reports that robot installations in the<br />

United Arab Emirates grew by 70% in<br />

2018, a trend that is expected to continue<br />

across the region.<br />

However, investing in autonomous<br />

technologies in the Middle East is not<br />

without challenges. Regulatory frameworks<br />

are still evolving, and there are<br />

concerns about data privacy and security.<br />

Additionally, the region faces a skills gap<br />

in AI and robotics, which could potentially<br />

slow down adoption rates.<br />

To address these challenges, Middle<br />

Eastern governments are taking proactive<br />

steps. The UAE, for instance, appointed<br />

the world’s first Minister of State for Artificial<br />

Intelligence in 2017 and has since<br />

launched several initiatives to promote<br />

AI education and research. Saudi Arabia<br />

has established the National Center for<br />

Artificial Intelligence and announced<br />

plans to train 20,000 data and AI specialists<br />

by 2030.<br />

From a risk management perspective,<br />

investors should consider the potential<br />

social and economic implications of widespread<br />

automation. While autonomous<br />

technologies promise increased efficiency<br />

and new job creation in high-skilled sectors,<br />

they may also lead to job displacement<br />

in certain industries. Savvy investors will<br />

look for companies and projects that not<br />

only develop cutting-edge technologies<br />

but also contribute to reskilling and<br />

upskilling the local workforce.<br />

The environmental impact of autonomous<br />

technologies is another factor<br />

to consider, particularly in a region<br />

already grappling with climate change.<br />

Investments in energy-efficient robotics<br />

and AI systems that optimize resource<br />

usage could yield both financial returns<br />

and positive environmental outcomes.<br />

As the autonomous technology sector<br />

in the Middle East matures, we can expect<br />

to see more sophisticated investment<br />

opportunities emerge. These may include<br />

AI-focused exchange-traded funds (ETFs),<br />

robotics-themed real estate investment<br />

trusts (REITs) centered around smart<br />

cities, and even sovereign wealth funds<br />

dedicated to autonomous technologies.<br />

In conclusion, the Middle East’s push<br />

towards autonomous technologies represents<br />

a significant shift in the region’s<br />

economic landscape. For investors, this<br />

transition offers a unique opportunity<br />

to participate in the growth of a sector<br />

that is poised to reshape industries and<br />

societies. By carefully evaluating the<br />

potential risks and rewards, and staying<br />

attuned to the region’s specific needs and<br />

challenges, investors can position themselves<br />

to benefit from the autonomous<br />

revolution unfolding in the Middle East.<br />

Oct <strong>2024</strong> www.thefinanceworld.com 85

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!