Bahrain, and the GCC, will continue to be a beacon of stability and economic growth for the wider Mena region, as artificial intelligence (AI) promises to be a boon for the energy industry, according to a top expert.
International Monetary Fund (IMF) regional office director Abdoul Aziz Wane also highlighted the resilience of the GCC in the face of global economic volatility.
He was speaking on ‘Recent Global and Regional Economic Developments’ at the Bahrain Centre for Strategic, International and Energy Studies (Derasat) yesterday.
“AI is an important source of productivity growth and economic growth for the GCC region in particular,” Mr Wane noted.
“There’s a significant increase in demand for energy due to the rise of artificial intelligence. This will contribute to sustaining oil prices.
“Also many countries are now exporting data instead of exporting oil, so instead of shipping the oil, they are bringing data centres in the region so you don’t have the cost of sending the oil abroad.
“And then the region can export the data – this requires basically being ready in terms of education of youth who can power these data centres.”
The session was part of the ‘Think Talk’ series and was moderated by Derasat studies and research director Dr Omar Al Ubaydli, and was attended by experts, economists, researchers and individuals interested in economic affairs.
Dr Wane reviewed the key transformations taking place in the global economy, highlighting the rapid changes in supply chains, the growing role of AI in boosting productivity and the expanding impact of new industrial policies on growth and investment trends worldwide.
He noted that the global economy has been experiencing volatility due to trade tariffs, accelerated shifts in global energy markets and the role of modern technology and AI in shaping patterns of production and growth.
Mr Wane also highlighted regional developments, noting that the GCC countries are some of the world’s most influential economic centres, beyond major energy producers.
He highlighted their advanced models in economic diversification programmes and the development of industrial, financial and technological sectors.
According to Mr Wane, Bahrain has emerged as a leader in this context, through its efforts to modernise its economy and enhance the business environment, reflecting a national vision rooted in innovation, openness and flexibility.
“The GCC is becoming a region of stability, economic growth and innovation, and this is extremely important in terms of positive spillovers to the wider region,” Mr Wane told the GDN.
“The GCC region can support the reconstruction in these countries, because it is also important to also acknowledge the possible negative spillover from unstable countries.
“So it is a good thing for the GCC countries to support the reconstruction in countries like Syria and reduce conflicts in general around the region.
“The GCC countries as a group are also becoming more of a policymaker on a global stage.”
Mr Wane highlighted progress in multiple areas in Bahrain and the GCC including empowering women in the labour force, education reform and innovation.
He noted that the IMF regional office in Riyadh is hoping to deepen dialogue with countries in the region, strengthen co-operation in capacity-building, support the development of economic policies and establish shared knowledge platforms connecting policymakers and experts from around the world.
naman@gdnmedia.bh
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