PwC has released new research outlining three data-driven scenarios for the Middle East by 2035. The report highlights a US$232 billion economic opportunity if the region effectively harnesses AI and manages climate risks.

Titled Value in Motion: The Middle East’s time to lead is now, the study reported that regional governments and businesses could significantly boost productivity through AI adoption.

PwC revealed that if AI-driven gains are realized and climate change is addressed, the region’s real GDP could reach US$4.68 trillion by 2035. However, in a business-as-usual scenario, GDP is expected to grow by 41.8%, reaching US$4.57 trillion. Factoring in climate risks like heatwaves and water scarcity could reduce this growth to 27.9%.

At stake is a potential US$232 billion gap between the most optimistic and constrained futures. The most positive outcome includes:

• An 8.3% GDP boost from widespread AI adoption
• Additional growth through decisive climate action

The research introduces a framework built around new “domains of growth.” These domains redefine how industries operate across areas like mobility, energy, healthcare, digital infrastructure, and connectivity. According to PwC, these shifts will create cross-sector opportunities and encourage innovation.

The report also emphasized the region’s strategic advantages, including bold climate goals, access to low-cost renewable energy, and rapid AI infrastructure growth. PwC noted that these factors position the Middle East to lead in sustainable, tech-driven growth.

Stephen Anderson, Chief Strategy & Technology Officer at PwC Middle East, said the coming decade will test the region’s imagination and capabilities. He urged businesses and governments to move with “pace, purpose, and partnership” to remain competitive.

PwC reported that clean energy will play a critical role in powering AI infrastructure. As global hyperscalers expand, the region could become a hub for AI and cloud services.

Dr. Yahya Anouti, Partner at Strategy& and PwC Middle East Sustainability Platform Leader, noted that balancing the cost of AI with clean energy scalability will be essential to unlocking the region’s potential.

The report called on regional stakeholders to act decisively. It recommended:

• Governments redesign institutions to reflect evolving human needs
• Businesses revamp models to align with a digital, low-carbon economy
• Academia develop future-ready talent and foster innovation

PwC concluded that the Middle East has the tools and vision to lead. The value is already in motion. Now is the time to act.

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