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Opinion
IMF Managing Director Kristalina Georgieva at the World Government Summit, Dubai (UAE), February 3-5, 2026. Credit: International Monetary Fund (IMF)
– It is my pleasure to join His Excellency Minister Al Hussaini in welcoming you to this important dialogue here in the United Arab Emirates, a rapidly growing global AI hub. A recent study by Microsoft reports that 64 percent of the UAE’s working-age population uses AI, which is the highest rate globally.
This illustrates the dynamism we see in the region and the major investments and partnerships that some of the world’s largest technology companies are making here.
Why such a great commitment to this region? Because the UAE and GCC members understand how transformative AI can be. They have made systemically significant investments in human capital over the past decades. IMF estimates show that, with the right measures, AI could provide a global productivity boost of up to 0.8 percentage points per year. This could lift global growth to levels higher than the pre-pandemic period.
Here in the Gulf region, AI could boost non-oil GDP in Gulf countries by up to 2.8 percent. For economies that have long relied on hydrocarbon exports, this presents a huge opportunity to diversify and build new sources of growth.
Now, big technological changes often bring disruption. And indeed, we can expect disruptions from AI. Especially to labor markets. On average, 40 percent of jobs globally will be affected by AI, whether enhanced, eliminated or transformed. In advanced economies, 60 percent of jobs will be affected. This is like a tsunami hitting the job market.
We’re already seeing the evidence: About one in 10 jobs in advanced economies now requires at least one new skill. Workers with in-demand skills will likely see increases in productivity and wages. This will create greater demand for services and increase employment and wages among low-skilled workers. But medium-skilled jobs will be reduced.
That means that young people and the middle class will be the most affected.
We can expect to see similar divergence between countries. Those with an economic structure conducive to AI adoption (i.e., strong digital infrastructure, higher-skilled workforces, and strong regulatory frameworks) are likely to experience the greatest and fastest benefits. Countries that do not do so may be left behind. That is why we gather here today. AI seems unstoppable.
But whether countries will be able to successfully capitalize on the enormous promise of AI remains to be determined. And this will depend largely on the political regimes they establish. So what needs to be done to ensure that AI translates into broad prosperity for this region?
First, macro policies. Investment and innovation in AI will drive growth. Fiscal policies can support this by strengthening tax systems and funding research, retraining or sectoral training programmes. However, tax systems should not encourage automation at the expense of people. Likewise, effective financial regulation will be essential to ensure financial market efficiency and better risk management.
Secondly, railings. AI must be regulated to ensure it is safe, fair and trustworthy, but without stifling innovation. Different countries are taking different approaches, ranging from risk-based frameworks to high-level principles. Whatever approach they take, it is essential that countries coordinate.
That brings me to my third point: cooperation and partnerships. Scale is a huge advantage in AI. But scale cannot be achieved without cooperation between governments, researchers and AI developers, including when it comes to data sharing and knowledge transfer.
Let me conclude. AI will transform our economies. It will present immense opportunities and pose significant risks. And it is up to you, the world’s policymakers, to ensure that opportunities for your countries are maximized and risks are controlled.
IPS UN Office
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