A new International Labour Organization (ILO) report projects that digitalization and artificial intelligence (AI) could deliver significant economic and employment gains across the Arab States—if countries adopt inclusive, forward-looking policies. The study underscores the importance of ensuring that women, youth, and vulnerable groups are not left behind as the region embraces a rapidly evolving digital economy.
The report, Navigating the Digital and Artificial Intelligence Revolution in Arab Labour Markets, finds that nearly 14.6% of jobs—almost 8 million—could benefit from AI-driven augmentation, where technology enhances rather than replaces human work. By contrast, only 2.2% of jobs (around 1.2 million) are at risk of being fully automated by generative AI. By 2035, AI integration could generate US$14.1 billion in additional GDP and create a net 118,000 new jobs across the region.
However, the impact will vary by sector. Fields such as construction, transport, teaching, personal services, and engineering are expected to see net employment gains, while public services, basic manufacturing, retail, and routine clerical roles may face job losses. “Digitalization and AI adoption in the labour market do not have to imply job destruction,” said Ruba Jaradat, ILO Regional Director for Arab States. “The real benefits can only be realized if governments, employers, and workers take deliberate steps to make the transition inclusive and fair.”
The report highlights sharp demographic disparities. Women face greater risks of automation, with 5.3% of female-held jobs vulnerable compared to 1.6% for men, reflecting their higher concentration in clerical roles. Yet women also stand to gain the most from AI augmentation, with 22.7% of their jobs potentially enhanced, compared to 13% for men. Without gender-focused policies, however, women could still face fewer opportunities by 2035 despite AI’s job-creation potential.
Youth aged 15–24 are more likely to benefit from new tech-driven occupations, while older workers over 55 face higher risks of exclusion due to reskilling challenges. Other vulnerable groups—including low-skilled workers, migrants, refugees, and persons with disabilities—also risk being left behind without targeted support.
The ILO stresses that policy choices will determine the outcome of the digital transformation. Governments must invest in digital infrastructure to close connectivity gaps, especially in rural and conflict-affected areas, and embed digital literacy, STEM education, and lifelong learning into training systems. Strong social protection measures, updated labour laws for gig and platform workers, and targeted support for micro, small, and medium-sized enterprises will also be critical to help workers and businesses adapt.
Finally, the report calls for regional and international cooperation to reduce disparities in digital readiness and align strategies with global standards. Covering 12 countries across the Gulf and Levant—including Bahrain, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Palestine, Syria, the UAE, and Yemen—the findings will guide ILO efforts to help governments and social partners build a just, inclusive digital economy that transforms technological progress into sustainable jobs and growth.
