From the UAE Pavilion in Davos.. The International Monetary Fund warns of the “tsunami of artificial intelligence” on jobs

The United Arab Emirates hosted a high-level dialogue at its pavilion as part of the agenda of the annual meeting of the World Economic Forum 2026 in Davos, bringing together global leaders to discuss the rapid transformations in the global economy, the impact of artificial intelligence on labor markets, and the future of comprehensive growth in light of rapid economic and technological changes.
In this exclusive dialogue entitled “Reconciling Artificial Intelligence, Jobs, and the Future of Inclusive Growth,” Badr Jaafar, UAE Special Envoy for Business and Philanthropy, discusses with Kristalina Georgieva, Director General of the International Monetary Fund, the opportunities and challenges associated with these broad changes and outlines economic aspirations in the coming stages.
Based on the recent assessments of the International Monetary Fund, Georgieva said that the global economy has been able to record sustained levels of growth despite the aggravation of ongoing global turmoil and fluctuations. The Fund has even raised its expectations for the coming period. However, she warned against taking this flexibility and promising results for granted amid the deep structural transformations we are still witnessing as a result of technological, geopolitical, demographic transformations and climate change.
Georgieva added: A severe tsunami is hitting the labor market with the accelerating wave of artificial intelligence that is changing the features of economies, including jobs that were not previously known and others that have completely disappeared. To be able to catch up with these rapid radical transformations, we must invest in skills and prepare societies to keep pace with the developments that we have already begun to see spreading, but what really worries me is the deep disparity in opportunities for growth and advancement from one region to another.
Badr Jaafar highlighted the long-term strategic choice taken by the UAE to build an economy based on flexibility, openness and global interconnectedness. He said: At a time when global systems are witnessing a state of dispersion and division, the UAE is redoubling its efforts to enhance interconnectedness and cooperation. Our skies are open, our ports are available, and our minds are open, and the recorded data are the best evidence of the effectiveness of this advanced approach.
He added: Last year, the UAE attracted more than $45 billion in direct foreign investments, an annual increase of nearly 50%, at a time when global foreign investment flows declined by 11%. The country accounted for more than half of the total investments flowing to the Middle East region, and ranked second in the world in new investment projects after the United States. It also received about 10,000 new millionaires, which is the largest number in the world. And in an era where distancing is the title, we are unique in facilitating communication. And interconnectedness, which is a strategic advantage that we are committed to strengthening.
The discussion covered a study conducted by the International Monetary Fund on global growth prospects and the risks of declining flexibility, and focused on the transformations in the labor market resulting from artificial intelligence. The study stated that about 40% of jobs globally will be greatly affected by artificial intelligence, and will either benefit from it, change, or disappear completely, which highlights the urgent need for policies and investments that support societies during the transitional phase.
To be able to deal with this wave flexibly and achieve comprehensive and equitable growth, Georgieva stressed four main factors: the ability of the private sector to adapt, the responsible adoption of artificial intelligence, the sustainability of trade flows, and thoughtful financial policies. She also stressed the importance of public investments in education, digital infrastructure, and making artificial intelligence tools available on a broader scale, to ensure the ability of societies to participate effectively in the new economy based on artificial intelligence.
The discussion indicated that the International Monetary Fund considers the UAE and the broader Gulf region in its forecasts to be places of strength and sustainable economic support, as Georgieva explained that this performance is based on three basic pillars: continued regulatory reforms, especially reducing bureaucracy; Sustainable economic diversification, as non-oil sectors represent more than 75% of the UAE’s gross domestic product. And long-term investment in human capital, skills and inclusion.
The session called for rethinking growth models in a way that achieves economic efficiency and ensures social justice. The two speakers stressed the importance of empowering youth, providing jobs that provide communities with a decent life, and enabling all groups to participate in economic development. The discussions also stressed the role of governments, the private sector, and strategic philanthropy in benefiting from the effectiveness of artificial intelligence and harnessing it to achieve sustainable comprehensive growth through social innovation, aligning incentives, and preparing for the spread of artificial intelligence and employing it to serve the social good.
This dialogue demonstrated the UAE’s commitment to shaping global economic discussions, and actively participating in international efforts to promote comprehensive growth, develop artificial intelligence, and anticipate the future of work. The session came within the program of the UAE Pavilion at the World Economic Forum, emphasizing the role of responsible innovation, long-term capital, and cooperation between sectors in building a more flexible and inclusive global economy.