High oil prices propel growth in Middle Eastern countries for a second straight year.Gulf countries make major push to incorporate AI and other emerging technologies., with countries in the region investing in new technologies and projects that could herald greater integration in the years ahead.
The windfall from oil revenue has generated more fiscal flexibility and external balance surpluses, allowing GCC members to continue to fund their diversification efforts, while improving diplomatic relations have opened the possibility for enhanced regional and global integration.GCC members are in a strong position heading into the new year. High energy prices in 2021 helped the Gulf’s largest economy, Saudi Arabia, forecast its first budget surplus in eight years for 2022.
. Abu Dhabi National Oil Company has already deployed machine learning to mine its historical and current data to generate scenarios and forecast operations. Meanwhile, Egypt, despite being an agricultural powerhouse, relies on Russia and Ukraine for nearly 70% of its wheat imports, and several agri-tech start-ups are working alongside the government to address this shortfall.The efforts and successes of GCC countries in driving the production policy of the Organisation of the Petroleum Exporting Countries has played a central role in keeping oil prices high.
In May ADNOC announced a new energy partnership with BP to develop hydrogen centres in both the UAE and the UK. ADNOC is set to acquire a stake in BP’s H2Teesside hydrogen project, while BP will invest in ADNOC’s green hydrogen plant at Abu Dhabi’s Masdar.