Over the next decade, artificial intelligence (AI), climate change and geopolitical shifts will reshape our world. They will unlock new markets, evolve expectations, and redraw the boundaries of how we live and work.
These forces are giving rise to entirely new economic domains built around fundamental human needs: How we feed, move, care and power our communities.
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A great opportunity for the Middle East
According to PwC Middle East’s latest report Value in Motion: The Middle East’s Time to Lead is Now, trillions of dollars in value are already in motion. The Middle East has a once-in-a-generation opportunity to lead this transformation, not just respond to it.
We’re seeing it happen. Right now.
Across the region, bold national visions are being backed by real investment. Governments are stepping forward to reimagine public and private sectors, and it’s working. The region is on track to exceed a projected GDP of $4.57 trillion by 2035, powered by the momentum of AI adoption and decisive climate action.
The rise of the innovation-led economy
With this level of ambition, businesses are breaking out of traditional lanes and building entirely new value chains. Mobility is merging with food. AI is powering genomics and next-generation patient care. Clean energy is reshaping transport. The old silos are gone. What’s emerging is an integrated, innovation-led economy that is more resilient and more competitive.
Powering economies through technology
At the center of it all is AI. Governments are investing strategically in data, biotech, and advanced manufacturing. The region is fast becoming a global hub for applied innovation. If the AI productivity boom lands, it could add 8.3 percentage points to GDP by 2035. That is a potential leap from $3.57 trillion today to $4.68 trillion — over a trillion dollars of new growth.
So, the question is simple: How do we capture that value?
Governments can take these actions now, based on what we’re already seeing across the region:
1. Reconfigure around human needs, not institutions.
Break down silos. Align ministries and services around domains like care, mobility and energy to deliver faster, more connected outcomes.
2. Invest in AI where it matters most.
Target high-impact use cases like health, education and mobility, and back them with infrastructure and funding.
3. Scale national talent.
AI academies, coding bootcamps and digital literacy programs are essential. Equip people with the skills they need to lead, not just follow.
4. Modernize legacy systems.
Free up capital by cutting inefficiencies and reinvesting in strategic priorities like infrastructure, education and healthcare.
5. Build alliances.
Deepen regional and global government partnerships to unlock market access, co-investment and geopolitical influence.
At the same time, the low-carbon transition is picking up speed, and that comes with real risk. For the Middle East, the reliance on traditional energy revenues makes the region vulnerable to disruption. Stranded assets are a real possibility if demand drops or regulation tightens.
The answer is to move early. Prioritize decarbonization. Scale clean energy. Support industry to make the shift. There may be short-term costs, but there is long-term upside too: Innovation, competitiveness and economic resilience.
Creating a future-ready leadership
This vision aligns closely with what we heard from government leaders around the world in our Global Ministers Survey. Ministers see innovation, digital capability and citizen participation as essential for future-ready governments — yet many are still grappling with structural constraints, resource gaps and talent retention.
The direction is clear, but the gap between aspiration and action remains wide. Closing that gap is where real value will be unlocked.
Now is not the time to wait and see.
Governments that act boldly today, that align vision with investment and policy with partnerships, will be the ones that unlock the most value tomorrow.
The time to lead is now.
Rami Nazer, Clients and Markets Leader, PwC Middle East, and PwC EMEA Government & Public Sector Leader
