A powerful economic opportunity is emerging at the intersection of artificial intelligence and climate resilience in the Middle East. According to a new report by PwC, the region could unlock a staggering $232 billion in additional GDP by 2035 if countries act decisively to integrate AI and accelerate environmental reforms.
Currently valued at $3.57 trillion, the Middle East’s GDP could surge to $4.68 trillion over the next decade with bold moves on digital transformation and sustainability. Countries like Saudi Arabia are already charting this path, making major investments in AI research and climate-friendly initiatives. In fact, Saudi Arabia now ranks 15th globally in AI research output, with more than 29,000 published works.
One of the region most ambitious tech investments is Project Transcendence a $100 billion partnership between Saudi Arabia Public Investment Fund and Google to scale homegrown tech innovation. Meanwhile, climate action is also gaining momentum through efforts like the Saudi Green Initiative, which targets 10 billion trees planted and a reduction of 278 million tonnes of carbon emissions annually.
PwC’s analysis shows that even with moderate progress, the region’s GDP could grow 41.8% by 2035. But failure to tackle climate risks could slash that figure to 27.9%, leaving as much as $232 billion on the table. The report emphasizes that balancing AI deployment with accessible clean energy will be the key to realizing this economic potential.
The message is clear: collaboration across governments, industry, and academia is essential. As the global race for innovation and climate readiness accelerates, the Middle East stands at a crossroads—one where strategic foresight today could shape a more prosperous, sustainable tomorrow.