Beirut, 21 May 2026 – Artificial intelligence is reshaping economies and labour markets across the Arab region, presenting both opportunities and risks for millions of workers. A new report by the United Nations Economic and Social Commission for Western Asia (ESCWA) and the International Labour Organization (ILO) warns that proactive and inclusive policy measures are urgently needed to ensure AI drives equitable growth rather than deepening inequality.
Launched during a special preparatory session for the Arab Forum for Sustainable Development (AFSD), the report “Artificial Intelligence and Employment Futures for the Arab Region” outlines three possible futures for AI adoption by 2035. In the most optimistic scenario, strong investment in skills and workforce transition could see AI contribute nearly 25 per cent of regional GDP, while creating new opportunities in education, health, and technology sectors. Conversely, if technological change outpaces preparedness, inequality could widen, displacing millions of lower- and middle-skilled workers.
ILO Regional Director Ruba Jaradat emphasized that the region stands at a critical juncture. “AI is not a distant prospect. Its impacts are already being felt across sectors, from public administration to services and beyond,” she said. “Our mandate is clear — to ensure that technological change advances decent work, social justice, and inclusion.”
The report highlights a widening skills gap, with mismatches between education systems and labour market needs reaching up to 70 per cent in some countries. It calls for urgent reforms in education, lifelong learning, and social protection to prepare workers for the evolving digital economy.
Discussions at the AFSD session focused on how governments, employers, and workers’ organizations can collaborate to manage this transformation effectively. The ILO reaffirmed its commitment to supporting Arab States in building future-ready labour markets where AI becomes a driver of inclusive growth and sustainable development, rather than a source of deeper inequality.
