Artificial Intelligence in Qatar: Assessing the Potential Economic Impacts

Selected Issues Papers, March 7, 2025

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Artificial Intelligence in Qatar: Assessing the Potential Economic Impacts

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Bibliographic details

• Authors: Tongfang Yuan
• Published: March 7, 2025
• Series: Selected Issues Papers
• DOI: https://doi.org/10.5089/9798229003919.018

Overview and executive summary

• Qatar has been actively preparing to embrace the transformative potential of artificial intelligence (AI), allowing it to lead its Emerging Market peers in AI readiness.
• Qatar’s AI exposure has increased significantly over the years.
• Increasing AI adoption is assessed to yield more opportunities than risks for the country’s labor force, thanks to the private sector’s contribution in increasing jobs that are more likely to benefit from AI-driven productivity gains.
• Scenario analyses suggest that increasing AI adoption, supported by policy reforms to boost human capital, innovation and domestic knowledge spillovers, could generate sizeable labor productivity gains over the medium term.

Key findings and themes

• AI adoption and readiness:
  • Qatar leads its Emerging Market peers in AI readiness.
  • AI exposure in Qatar has increased significantly over the years.
• Labor market implications:
  • Increasing AI adoption is assessed to yield more opportunities than risks for Qatar’s labor force.
  • The private sector contributes to increasing jobs that are more likely to benefit from AI-driven productivity gains.
• Productivity impacts:
  • Scenario analyses indicate potential sizeable labor productivity gains over the medium term, conditional on complementary policy reforms.

Scenario analyses and assumptions

• Central scenario insight:
  • Increasing AI adoption, supported by policy reforms to boost human capital, innovation and domestic knowledge spillovers, could generate sizeable labor productivity gains over the medium term.
• Implicit policy conditions in scenarios:
  • Reforms to boost human capital.
  • Policies to strengthen innovation.
  • Measures to encourage domestic knowledge spillovers.

Policy implications and recommendations (as assessed in the paper)

• Support increasing AI adoption with policy reforms that:
  • Boost human capital.
  • Promote innovation.
  • Facilitate domestic knowledge spillovers.
• Leverage private sector dynamics to expand jobs likely to benefit from AI-driven productivity gains.

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• Artificial Intelligence in Qatar: Assessing the Potential Economic Impacts
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