# IMF on AI in Middle East _IMF Deputy Director Koeva Brooks discusses AI's role in the Middle East's economy, highlighting resilience amidst geopolitical risks and the potential for AI-driven growth._ **Updated:** 2026-08-22 **Published:** 2026-07-08 **Source:** https://www.startuphub.ai/ai-news/artificial-intelligence/2026/imf-on-ai-in-middle-east --- In a recent Bloomberg Talks segment, IMF Deputy Director Koeva Brooks shared insights into the economic outlook for the Middle East, with a particular focus on the burgeoning role of Artificial Intelligence (AI) in the region. Brooks highlighted the surprising resilience of the Middle Eastern economies, noting that their overall economic forecast has remained relatively stable despite the ongoing conflict and its associated global economic headwinds. This resilience, she explained, is partly due to the region's ability to adapt and mitigate the shocks experienced in various commodity markets. Geopolitical RisksDriverongoing conflict impacting commodity markets and supply chainsFrom the article 7 mentionsA significant portion of the discussion centered on the dual forces shaping the region's economic future: geopolitical events and the rapid advancement of AI.Adaptation & MitigationContextregion's capacity to weather economic volatility and shocksMiddle East EconomyContextshowing surprising resilience amidst global economic headwindsFrom the article 4 mentionsIn a recent Bloomberg Talks segment, IMF Deputy Director Koeva Brooks shared insights into the economic outlook for the Middle East, with a particular focus on the burgeoning role of Artificial Intelligence (AI) in the region.AI IntegrationCoreArtificial Intelligence playing a burgeoning role in the regionEconomic OutlookOutcomeforecasts largely holding true from April's assessmentFrom the article 9+ mentionsBrooks elaborated on the IMF's latest global economic outlook, emphasizing that for the Middle East, the forecast from April largely held true.enablesAI Growth CatalystEffectAI as a potential driver for economic expansionFrom the article 5 mentionsThe IMF's baseline forecast anticipates continued, albeit moderate, growth for the region over the next three months.affectsSector ResilienceOutcomemaintaining stability in the AI sector despite challengesFrom the article 7 mentionsBrooks highlighted the surprising resilience of the Middle Eastern economies, noting that their overall economic forecast has remained relatively stable despite the ongoing conflict and its associated global economic headwinds. ## IMF's Economic Outlook for the Middle East Brooks elaborated on the IMF's latest global economic outlook, emphasizing that for the Middle East, the forecast from April largely held true. She pointed out that the region has demonstrated a significant capacity to weather the storm of global economic volatility, including the impacts of war and supply chain disruptions. While the war has introduced a degree of uncertainty, the overall economic performance in the Middle East has been more robust than initially feared, with some sectors showing remarkable strength. ## The Dual Impact of AI and Geopolitics A significant portion of the discussion centered on the dual forces shaping the region's economic future: geopolitical events and the rapid advancement of AI. Brooks acknowledged that while the war's impact on oil prices has been a concern, the region has managed to adapt. However, she also cautioned that significant risks persist. She specifically mentioned the potential for a correction in the technology sector, including AI, which could have ripple effects across global markets and impact economies that have become increasingly reliant on tech investments. The full discussion can be found on **Bloomberg Podcast**'s YouTube channel. ![IMF Deputy Director Koeva Brooks Talks AI in The Middle East | Bloomberg Talks - Bloomberg Podcast](https://img.youtube.com/vi/xHAh7-hInRk/maxresdefault.jpg) IMF Deputy Director Koeva Brooks Talks AI in The Middle East | Bloomberg Talks, from Bloomberg Podcast Brooks noted that the IMF had considered more severe scenarios, including drastically higher oil prices, which fortunately did not fully materialize. Despite this, the underlying risks remain, and the global economic environment is still characterized by considerable uncertainty. The IMF's baseline forecast anticipates continued, albeit moderate, growth for the region over the next three months. ## AI as a Catalyst for Growth The conversation then shifted to the transformative potential of AI in the Middle East. Brooks articulated that AI is increasingly viewed as a critical engine for future economic expansion in the region. The adoption of AI technologies is expected to unlock significant productivity gains across various sectors, driving innovation and competitiveness. Countries that actively invest in AI development and implementation, alongside broader structural reforms, are likely to be better positioned to navigate future economic challenges and capitalize on emerging opportunities. ## Risks and Resilience in the AI Sector However, Brooks also sounded a note of caution regarding the AI sector itself. She highlighted that the rapid growth and investment in AI have also created certain risks. The IMF is monitoring the potential for a correction in AI-related markets, which could impact investment strategies and overall economic stability. This includes the risk of over-reliance on AI-driven growth, where a downturn in this specific sector could have disproportionately large consequences for economies that have heavily invested in it. Brooks elaborated on how these risks are being assessed, particularly concerning the impact on asset valuations and the potential for a broader market correction. She suggested that a significant slowdown in AI adoption or a market downturn could lead to a reassessment of investment strategies, potentially affecting capital flows and economic growth trajectories in countries that have heavily bet on the AI boom. The discussion also touched upon the specific economic situations in various countries, including South Korea and the United States, drawing parallels and contrasts with the Middle Eastern context. Brooks indicated that while some emerging markets are experiencing growth, others are facing more challenging economic conditions. The IMF's analysis aims to provide a nuanced view, acknowledging both the opportunities and the inherent risks in the current global economic climate. --- Original analysis from [startuphub.ai](https://www.startuphub.ai), the #1 AI startup directory. © StartupHub.ai. All rights reserved. You may not republish this article in full without a license. Search engines and AI research tools may crawl and summarize for reference. Bulk reproduction or model training on this content requires a license. See https://www.startuphub.ai/terms.