The Middle East is undergoing changes to financial systems due to political uncertainty, fierce competition in artificial intelligence (AI) and the ever-present threat of climate change.
Traditional industries are interacting and changing societal habits in areas such as travel, building, power, interconnection and healthcare. The region must harness these interacting forces into economic growth.
These developments create opportunities for technology start-up businesses to deliver excellent products that scale quickly and work for years.
According to professional services specialists PricewaterhouseCoopers (PwC), the regional economy will grow to $4.57 trillion by 2035. AI is expected to add more than $230 billion in economic value.
Kuwait’s Role in an AI-Driven Future
The United Arab Emirates (UAE) has hogged the regional spotlight in AI, but Kuwait is also on its own path to becoming a leader in the sector.
Kuwait is scaling its AI sector at a slower pace than its neighbours, but the government is clearly building a sustainable digital economy.
The nation’s Vision 2035 project has pinpointed technology as a key driver for economic growth, as the nation looks to shift away from its overreliance on crude oil. They have given priority to AI.
They have invested in the digital infrastructure to allow AI to develop. Kuwait has also encouraged educational establishments to boost their capacity in computer science and data analytics. It has given priority to responsible technology and is in a terrific position to lead the charge in AI.
Some countries have chosen to adopt AI by any means without establishing any nuances. However, policymakers in Kuwait took a cautious approach, especially in financial technology and data security. Start-ups are stepping into an environment that values rapid growth, resilience and ethical standards.
Kuwait is laying the foundations to establish itself as a recognised centre for AI applications, one that attracts entrepreneurs who want to build innovative products and value long-term stability.
AI & Regulated Opportunities
Besides improving productivity and delivering more innovative logistics, AI can be a catalyst for other regulated industries.
The Middle East has recorded higher trust in AI than the global average, with chief executive officers confident that it helps save time and bolsters profits.
AI can play a key role in the conversation around regulating gambling in Kuwait. The practice is still prohibited across most of the Middle East. However, many Arab players visit review platforms to find the most reputable online casino in Kuwait to play games such as roulette, blackjack and slots.
For a country looking for economic growth avenues, leaving money on the table for the foreign jurisdictions that license these platforms does not make sense.
AI can help establish the regulatory framework around gambling, and could assist with identity verification, security and transparency in an industry where trust is paramount.
Industries Without Borders
The removal of boundaries that previously demarcated transport, healthcare, construction, communication and energy has opened the door to start-ups that live off cross-sector innovation.
Kuwait has a small but diverse economy, making it easy to adapt to this shift. A start-up that builds AI tools for energy management can easily develop products that can be applied to construction projects and urban transport.
AI and cloud-powered healthcare innovation can be applied to financial technology and logistics. This overlap requires start-ups to be versatile. They cannot focus on a single vertical and must explore how their solutions can be applied across different domains.
The Kuwaiti government has invested in the infrastructure that allows businesses capable of bridging different sectors to thrive. The most successful players in this new age economy will be the dynamic ones who see success where others see silos.
Building Talent for Tomorrow
AI and other related industries require a skilled workforce in coding. This workforce also needs to know how to apply technology to real-world problems.
Kuwait now faces the task of equipping its young people with the right combination of technical and entrepreneurial skills.
Notably, start-ups play a crucial role in this aspect. Besides hiring talent, they are also expected to impact the skill pipeline.
Entrepreneurs can push for the implementation of programmes that give students practical experience, while encouraging them to be adaptable and apply their knowledge to real problems.
Investors can also be mentors and trainers, ensuring that their funds are actually improving the pipeline skill-wise.
Education is one of the core tenets of Kuwait’s Vision 2035, providing a supportive environment. However, the real test will be whether start-ups can combine scaling their products and developing talents simultaneously.
Building human capital will be a key determinant as to whether Kuwait’s digital economy grows or crumbles under the weight of its lofty ambitions.
