TLDR: The United Nations Economic and Social Commission for Western Asia (ESCWA) has released a pivotal report, ‘Artificial Intelligence Futures for the Arab Region,’ urging Arab leaders to swiftly address the profound impact of AI. The report highlights AI’s dual effect on the global job market, projecting 83 million job displacements against 69 million new creations, and emphasizes the critical need for skill development and robust regulatory frameworks to harness AI’s benefits while mitigating its inherent risks.
Beirut, July 17, 2025 – The United Nations Economic and Social Commission for Western Asia (ESCWA) has issued a pressing call to action for Arab leaders, emphasizing the urgent need to navigate the rapidly evolving landscape of artificial intelligence (AI). In its newly released report, ‘Artificial Intelligence Futures for the Arab Region,’ ESCWA underscores AI’s transformative potential across key sectors such as healthcare, education, and government services, while also highlighting the complex challenges it presents.
The report projects a significant shift in the global labor market due to AI, anticipating the displacement of approximately 83 million jobs worldwide, even as it is expected to create 69 million new ones. This necessitates a proactive approach to workforce development and skill adaptation.
ESCWA Executive Secretary Rola Dashti stressed the urgency of the situation, stating, ‘The pace of AI advancement leaves no room for delay. Arab leaders must act decisively to unlock its transformative power while mitigating the complex risks it introduces.’ These risks include ethical dilemmas, data governance concerns, algorithmic bias, and the potential to exacerbate existing inequalities, all of which demand robust regulatory frameworks and inclusive policymaking to ensure equitable and responsible AI development.
AI adoption is accelerating at an unprecedented rate globally. The report reveals that by the end of 2024, 35% of businesses worldwide had already integrated AI technologies into their operations, with an additional 42% actively considering future implementation. Furthermore, over half of enterprises employing more than 5,000 individuals are currently utilizing AI, and more than 90% of government organizations surveyed globally are either using or exploring AI solutions.
In the Arab region specifically, AI capabilities have been steadily advancing since 2022, surpassing even the adoption rates of mobile phones and the internet. The region increasingly views AI as a crucial driver for innovation and sustainable development.
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However, the reshaping of the labor market by AI also brings significant challenges, particularly in the form of skill gaps. The report identifies these gaps as the most substantial barrier to business transformation, with 63% of employers citing this as a top challenge between 2025 and 2030. In response, a vast majority of employers are planning strategic investments: 85% intend to invest in workforce upskilling, and 70% plan to hire talent equipped with new, AI-relevant skills.
