IMF warns of AI ‘tsunami’ as UAE hosts meet on inclusive growth

Staff Reporter, Gulf Today/ WAM

Davos: The UAE hosted a high-level dialogue at the UAE Pavilion during the 2026 World Economic Forum Annual Meeting in Davos, convening global leaders to examine the shifting dynamics of the world economy, the impact of artificial intelligence (AI) on labour markets, and the future of inclusive growth amid accelerating economic and technological change.

Held under the title The Great Rebalancing: Artificial Intelligence, Jobs, and the Future of Inclusive Growth, the session brought together Badr Jafar, the UAE’s Special Envoy for Business and Philanthropy, and Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), for a fireside discussion on the risks and opportunities shaping the global economic outlook.

Drawing on the IMF’s latest assessments, Kristalina Georgieva noted that while global uncertainty remains exceptionally high – and is likely to persist – the world economy has demonstrated notable resilience, with growth holding steady and IMF projections upgraded for the period ahead. She cautioned, however, that this resilience should not be taken for granted amid profound structural transformations driven by technology, geopolitics, climate change, and demographic shifts.

“A tsunami is hitting the labour market,” said Georgieva. “AI is quickly reshaping economies.

Some roles grow; others disappear. We must invest in skills and prepare communities. The world as a whole is already experiencing the arrival of AI, but I do worry about the accordion of opportunities that are much more present in some places than in others.” Badr Jafar highlighted the UAE’s long-term strategic choice to build an economy optimized for resilience, openness, and global connectivity. “At a time when global systems are fragmenting, the UAE is doubling down on connection. We are known for open skies, open ports, and open minds – and the data shows the value of this approach,” he said.

“Last year, the UAE attracted over US$45 billion in foreign direct investment, up nearly 50% year-on-year, even as global FDI declined by 11%. We accounted for more than half of all investment flows into the Middle East, ranked second globally for new greenfield projects, behind only the United States, and welcomed in nearly 10,000 new millionaires, more than any other country worldwide. In an age of fragmentation, our connectivity is a clear strategic advantage.” The discussion explored IMF research on global growth prospects and resilience threats, with a particular focus on labour-market transformation driven by AI. IMF estimates suggest that around 40% of global jobs will be significantly affected by AI-driven change – either enhanced, transformed, or displaced – highlighting the urgency of policy and investment choices that support communities through transition.

To enable resilient and inclusive growth, Georgieva emphasised the importance of four enabling factors: private-sector adaptability, responsible AI adoption, sustained trade flows, and sound fiscal policy. She also highlighted the critical role of public investment in education, digital infrastructure, and access to AI tools to ensure that communities can participate meaningfully in the emerging AI-driven economy.

The UAE and wider Gulf region were cited as consistent bright spots in the IMF’s global economic outlook. Georgieva pointed to three key enabling capabilities underpinning this performance: ongoing regulatory reform, including efforts to reduce bureaucracy; sustained economic diversification, exemplified by non-oil sectors now accounting for more than 75% of UAE GDP; and long-term investment in human capital, skills, and inclusion.

The session called for a rethinking of growth models to deliver economic efficiency alongside social equity, highlighting the importance of quality job creation, youth empowerment, and broadening participation in economic opportunity. Discussions also emphasised the role of governments, the private sector, and strategic philanthropy in translating AI-enabled productivity gains into inclusive and durable growth through social innovation, aligned incentives, and increased AI readiness.

The dialogue reflected the UAE’s continued commitment to shaping global economic conversations and contributing constructively to international efforts on inclusive growth, artificial intelligence, and the future of work. The session formed part of the UAE Pavilion’s broader programme at the World Economic Forum Annual Meeting, showcasing the role of responsible innovation, patient capital, and cross-sector collaboration in building a more resilient and inclusive global economy.

The Department of Health - Abu Dhabi (DoH) and the World Economic Forum today, announced the next stage of a partnership to advance intelligent health systems and healthy longevity, reinforcing Abu Dhabi’s position as a global leader in preventive and personalised health.

The signing took place in the presence of Sheikha Latifa Bint Mohammed Bin Rashid Al Maktoum, Chairperson of the Dubai Culture and Arts Authority; Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs and Member of the World Economic Forum Leadership Council; Børge Brende, President and CEO of the World Economic Forum, and Larry Fink, interim Co-Chair of the Board of Trustees of the World Economic Forum and co-founder, Chairman and CEO of BlackRock.

Mansoor Al Mansoori, Chairman of the Department of Health - Abu Dhabi, said, "Today’s health systems are rich in individual innovation but held back by silos and a traditionally reactive approach. Through our collaboration with the World Economic Forum, we are shifting the global paradigm toward intelligent health infrastructure. Our goal is to build a personalised and proactive system that cares before it cures, enabling healthier, longer lives at a true population scale.” The announcement follows the culmination of the previous phase of the partnership between the DOH and the Forum, which resulted in the co-authored white paper, A New Era for Digital Health: Abu Dhabi’s Leap to Health Intelligence. The paper outlines how Abu Dhabi has built a system that connects clinical, genomic, lifestyle and environmental data to predict risk, prevent disease and inform policy at population scale.

Shyam Bishen, Head of Health and Healthcare at the World Economic Forum, said, "As part of this next phase, Abu Dhabi will continue its role as a Global Pathfinder within the Forum’s Digital Healthcare Transformation platform, a global network that brings together more than 200 organisations across healthcare, technology, policy and investment to accelerate health system transformation worldwide.” As part of this next phase, Abu Dhabi will continue its role as a Global Pathfinder within the Forum’s Digital Healthcare Transformation (DHT) Initiative, an international CEO and Minister-led platform that brings together more than 200 organisations across healthcare, technology, policy and investment to accelerate health system transformation worldwide, re-imagining health through digital, AI, and data-driven innovation at scale.