Oman is charting its path to economic growth by adopting an economic diversification policy, with digital transformation being a key branch that can contribute significantly to local economic development. According to a 2018 report by PwC, investing in artificial intelligence (AI) is crucial for achieving substantial sustainability in Oman's economy. The report suggests that AI technologies could increase the GDP of Oman, Kuwait, Qatar, and Bahrain by up to 8.2 per cent by 2030. Previous articles have discussed AI practices and current digital systems in Oman, the government's future ambitions for digital transformation, and the clear plans stemming from "Oman Vision 2040". These articles also explored the investment and economic aspects of digital transformation and AI applications in Oman, highlighting the vision's alignment with economic growth and GDP enhancement.
There remain questions about the growth of the digital sector in Oman and the latest updates on its applications across various strategic sectors. This article continues the discussion on the practical trajectory of AI in Oman.
Recently, local media have reported on developments in AI and its economic contributions. Two noteworthy reports were published in the Oman newspaper on May 27. The first report highlights the Environmental Authority's use of AI algorithms to analyze data collected through remote sensing systems and satellite images to monitor frankincense trees, predicting future changes to protect these trees. The second report recommends using AI to guide workers and mediate labor disputes, with human intervention available if digital mediation fails. These reports illustrate AI's potential in complex sectors such as agriculture and labor, which have not typically been associated with AI in Oman, unlike health and education. The agricultural sector, with its significant economic challenges, can greatly benefit from AI algorithms. There are ongoing digital initiatives to monitor frankincense trees, and many Omani researchers have presented studies at local conferences exploring AI solutions for agriculture.
In the labor sector, using AI to guide workers and mediate disputes reflects the digital awareness in Oman and the potential of AI to interact with human emotions and analyze behavioral patterns, marking a significant shift in community services. AI's analytical capabilities can reduce operational costs, improve quality, and provide efficient solutions, thereby contributing to GDP growth directly or indirectly by being employed in key sectors.
A PwC report outlines potential AI contributions to GDP in the Middle East by sector. For example, AI could contribute 12.4 per cent to the GDP in the construction and manufacturing sector, 18.6 per cent in the public sector (including education and health), 19 per cent in retail and wholesale trade, consumer goods, accommodation, and food services, 15.2 per cent in transportation and logistics, and 14 per cent in technology, media, and telecommunications. These projections depend on the strategic plans and economic visions of the region, which are subject to change due to rapid technological advancements.
We have previously outlined aspects of Oman's digital economy vision and continue to monitor its progress according to the planned schedule. The success of this vision is evident, yet the rapid development of digital systems requires continuous updating of our digital execution plans. This involves discovering new areas for AI and digital system applications in sectors that were not initially prioritised in the digital transformation programme such as community and humanitarian sectors. The recommendation to use AI in labor dispute resolution is an example of innovative AI applications in human-related tasks, ensuring workers' rights. Education is another sector needing greater interaction with smart digital technologies, considering the potential negative impacts of irresponsible AI use. Clear practices and ethical guidelines for digital applications are essential for all sectors where digital systems are integrated.
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