The UAE Model of Economic Adaptation: Tourism and Artificial Intelligence 

The United Arab Emirates (UAE) has been one of the fastest-growing economies in the world, thanks to its oil and gas reserves. As it stands, the oil and gas sectors account for nearly 30% of the country’s gross domestic product (GDP) and around 40% of its total exports (Trading Economics). Despite the rising supply of oil, the long-term profitability of these exportations is questionable in light of rising environmental concerns and efforts to tighten environmental standards on fossil fuel industries. Moreover, “this combination of rising supply amid the global push to reduce reliance on fossil fuels is expected to continue,” predictively leading to the so-called ‘age of oil abundance,’ under which the wealth of the UAE is vulnerable (Mirzoev et al.). This reality suggests that oil-dependent economies in the Middle East “could run out of money long before they run out of oil” (Dudley), according to the International Monetary Fund (IMF). Therefore, there is a need for the UAE to diversify its economy and reduce its dependence on oil and gas exports. 

Following this logic, shifts in the current global economic landscape call for developing non-oil sectors. The COVID pandemic served as a wake-up call. Following an unprecedented demand shock in 2020, there was a collapse in oil prices (Johnston) which resulted in the shrinking of the UAE’s GDP by 6.1% (Coface for Trade), translating into a -4.96% GDP growth rate in 2020 (Macrotrends). Similarly, the rise of emerging economies, such as China and India, has created new opportunities for trade and investment that the UAE could capitalize on. Technological advancements have enabled FDI exchanges with these economic superpowers. For instance, negotiations with China in May of this year totalled around 11 billion dollars and were largely based on “new economic sectors, trade, transportation & technology” (United Arab Emirates Ministry of Economy).

Accordingly, economic recuperation has been strategized around aggressive action to diversify the UAE’s economy. Adaptation has occurred at the Emirate level, as they have shaped their efforts according to their levels of oil reserves. In fact, “about 96% of the country’s roughly 100 billion barrels of proven oil reserves are located in Abu Dhabi.” Thus, other Emirates, such as Dubai, Sharjah and Ras-Al-Khaimah have focused on developing their non-oil sectors more attentively. Tourism is among the leading non-oil sectors, contributing 11.6% to the UAE’s GDP in 2019 (Ibid). Hence, the UAE’s next step forward is through the development of sustainable tourism. 

Here sustainable tourism is taken to mean the practice of establishing a balance between socio-cultural, environmental and economic characteristics of tourism development. This balance is found to conserve biodiversity and minimize the impact of tourism on the environment. The UAE has already undertaken many projects to further this goal, notably through the use of technology. Indeed, the UAE is currently investing heavily in boosting innovation and digital transformation. Its current focus is promoting the integration of Artificial Intelligence and 4IR tools in the tourism sector to promote sustainability. As put by Falasi, Director General of UAE HR, the digitalization of tourism is essential as it adds value to the region’s diverse environment, while increasing its attractiveness (Innovation & Digitization in Tourism’ Forum Discusses Ways to Achieve Sustainable Growth in the Middle East Tourism Sector through Technology & Digital Solutions).

Therefore, this paper will evaluate these efforts at the country level, attempting to answer the following research question: How did the UAE shape its diversification agenda around a model of sustainable tourism enabled by AI? To develop an answer, the first two parts will discuss the UAE’s short and long-term responses to declining oil prices, which included diversifying into sustainable tourism and technology-driven non-oil sectors. Subsequently, a third part will examine the growth of these non-oil sectors and their contributions to the economy, assessing the success of the UAE’s diversification strategy. Finally, the paper will focus on analyzing the possible challenges to the economic diversification strategy and will focus on highlighting the need for continued innovation and investment in infrastructure, education, and technology.

  1. The UAE’s Short-Term Responses to Declining Oil Prices: Diversification Efforts into Tourism

There has been a robust acceleration of non-oil sectors since the pandemic in the UAE. The country’s non-oil trade performance garnered the world’s attention when it jumped by 28% in 2021 and has been growing ever since (United Arab Emirates Ministry of Economy). Research and Education for Expo 2020 Dubai unveiled the importance of ecotourism, as 44% of tourists stated that sustainability significantly influenced their behavior and reason to come to Dubai (Yousuf Lootah). Similarly, many reports (such as that of Tripadvisor) highlight the importance of sustainable tourism and authentic local experiences (Ibid.). Tourism is amongst the leading non-oil sectors in the UAE. It contributed $1 trillion to world GDP in 2021 after the drop in 2020, thus the UAE is using this sector to diversify its economy (World Travel & Tourism Council). To further this trajectory, the UAE embarks on the ambitious task of investing heavily to promote its cultural heritage, adventure tourism and natural beauty. For this goal, Dubai and the rest of the Emirates have enacted numerous policies to provide exquisite travel experiences while keeping up with sustainable principles. 

The UAE wants to uplift itself among the top global leaders in tourism. This aim requires substantial economic funding. Economic growth is the first step necessary to come to par with the monetary requirements for such goals. H.E. Bin, the Minister of Economy, pointed out the importance of strategic partner networks and trade at the heart of UAE’s non-oil export globalization policy (Ibid). Thus, the country is targeting investors to sustain growth and fund technological advancement. Indeed, in 2022, it took the first step to achieve these goals by launching Freelance, Green and Golden Visas to attract entrepreneurs. Even more, the establishment of Free Zones further incentivises entrepreneurs and businesses to set up companies within the UAE.

Owing to such policies, the UAE can maintain the required sum to uplift itself among the top global leaders in tourism. To further this sector, Emirates bears measures to enhance infrastructure to conform to its sustainable goals. Dubai has undertaken the Dubai Sustainable Tourism initiative to achieve a net-zero carbon economy. Hotels, restaurants and tourist attractions are required to abide by sustainable guidelines established by the government to attain a net-carbon economy (Government of Dubai). In 2017, the carbon calculator came into play to measure the carbon footprints of hotels. The calculator learns algorithms to optimize energy usage and aids hotels with implementing necessary initiatives to reduce their carbon footprint. Established educational programs also benefit people within the tourism industry to learn how to initiate ‘Green teams’ and implement procedural plans to promote sustainability and preserve biodiversity (Ibid).

To go a step further, the UAE is making use of technology. Technological advancement is the answer for the UAE to facilitate its aim of shedding the image of being energy-focused. This shift stems from Artificial Intelligence (AI) and technological advancement to improve sustainable tourism. For this, the UAE became the first country to appoint a Minister of Artificial Intelligence (Galeon). The minister oversees and helps develop the UAE’s National AI strategy, which includes using AI to drive sustainability through smart cities, energy management and environmental protection. The government is also funding Research and Development and encouraging innovation in this field to promote new advancements within the field of tourism (United Arab Emirates Minister of State for Artificial Intelligence, Digital Economy & Remote Work Applications Office).

A great example of enhanced public experience is the use of ‘Smart Tourism Platforms’ such as ‘Habibi AI’, which specializes in providing personalized recommendations to tourists. A prominent advantage of such platforms is that tourists are recommended places which are not popular destinations, thus reducing overcrowding and congestion. Therefore, tourists can explore more cultural and heritage sites which are unfrequented (Habibi AI). Such platforms also help tourists to plan their trips effectively, thus reducing fossil fuel emissions. With such tourism practices through AI, the Emirates is placing itself among the leaders of sustainable tourism while promoting sustainable development. 

The UAE also has AI waste management systems in place. They promote sustainable tourism by aiding in reducing waste and increasing recycling waste. This system plays upon satiating the tourist’s need for eco-tourism while also improving the aesthetics of the city. Since 2018,  hotels and restaurants have pledged to use AI programs such as ‘Winnow Vision’,  which strives to eradicate food waste. It collects data on the type of food wasted and creates algorithms to aid restaurants in reducing this waste. This program reduces carbon dioxide levels generated otherwise due to food wastage (Sheldon). Such methods enhance visitors’ experiences by reducing litter and providing a more pleasant environment. 

Known for its deserts, the UAE has limited freshwater resources. The Dubai Electricity and Water Authority uses AI to learn algorithms for proactively maintaining the Emirate’s water network. Such systems are essential to ensure a high criterion of reliability and accountability of water quality (Gulf News Report). This system furnishes a crucial water supply for outdoor activities while securing a sustainable supply. In its objective to be the new technology hub of the world, this posits a necessary precursor. 

As stated previously, systems have been introduced in the UAE to facilitate its diversification from an oil-based economy. The UAE is working on innovation in tourism to enable its growth as the world leader in sustainable tourism. For this, the UAE has established many long-term goals to cater to the growing demand for sustainable tourism. 

  1. UAE’s Long-Term Strategy to Diversify its Economy: Strengthening Non-Oil Revenues 

As the rest of the world gathers resources to compete in the highly anticipated “AI race” (Ball) sparking harsh debate on its potential usage and consequences, various countries stand out for their policies towards this new technology. While China is getting ahead of the US in the development of AI technologies (Lee 4) and Italy has become the first Western country to ban ChatGPT (McCallum), the UAE have, as mentioned before, become the first country in the world to create a Minister of State for Artificial Intelligence (Galeon). As part of the newly launched UAE Centennial Plan 2071, created by the Vice President and Prime Minister of the UAE and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum, the Minister’s intention is to “double the contribution of the digital economy to the UAE’s non-oil GDP from 11.7 per cent to over 20 per cent within the next 10 years” (UAE Government).

Aiming at becoming the best country in the world by its 100th anniversary in 2071, the UAE has made various plans to adapt to climate change and, most importantly, to the depletion of its oil reserves by 2060 (Abu Dhabi Media Office). As part of the 50 year long vision implemented by the Centennial Plan, the Environment Agency of Abu Dhabi has launched its Environmental Centennial Plan 2071, according to which environmental protection, the economy and foreign investments will be interlinking and sustaining each other through technology and innovation. This could potentially place the UAE at the top of the list featuring the most prominent global economic players in the next few decades. 

One sector in which such codependency is going to be the most evident is, indeed, sustainable tourism. In particular, the Emirate of Dubai – and its homonymous capital city – has been putting significant amounts of effort, as seen in the previous section, into promoting its image as one of the world’s leading tourist destinations. Directed as a private company by a tribal dynastic government, Dubai defied many a touristic theory preconception, becoming an “illusory hyper-realistic” metropolis (Anthonisz and Mason) that attracted 14.36 million overnight visitors in 2022 (Tourism) and is projecting 25 million a year by 2025 (Wam 2018). With its luxury hotels and resorts, its claims to become the city with the least carbon footprint in the world by 2050 (Wam 2016) and propaganda of tolerance and stability, Dubai is set to lead the way into a futuristic and avant-garde approach to tourism in the UAE, supported by artificial intelligence. The goal, as described in the website of the Minister of State for AI, is to globally become “first in customer-support AI, creating integrated and personalized services for tourists in the UAE” (Strategy). As shown in various studies (Hussein Al-shami et al., Samala et al.), and as aforementioned, AI can support hotel management and other touristic services operators in tailoring the experience they offer to each client, reducing food waste and easing communications between the staff and the client. The touristic sector contributed to 12.1% of the UAE’s GDP in 2022, and is forecast to rise by 4.9% per annum to AED 264.5 billion (USD 72 billion), which would be 12.4% of GDP in 2027 (Travel and Tourism). The Ministry for AI predicts that the implementation of AI in tourism and retail could generate further 42 billion AED in the sector by 2030. It is thus no surprise that the government considers it one of the most vital sectors to develop within the Centennial Plan 2071, and one of the principal targets for AI implementation.

The Centennial Plan 2071, however, does not only refer to sustainable tourism, and is not the sole program that the UAE has prepared to diversify its economy. With the general aim to increase the UAE’s soft power on the rest of the world, it focuses on imbuing society with specific moral values, tied to the UAE’s culture and notions of sustainability. Focusing on non-oil revenues and improving education, the plan revolves around technology and innovation, including therefore AI. Within this framework, the government has proposed various goals to reach within 2030, such as the Dubai Industrial Strategy 2030, the Dubai Autonomous Transportation Strategy and the Environment Vision 2030 (Abu Dhabi). Specifically, all these initiatives aim at making the UAE a central industrial and digital economic hub in order to increase non-oil profits and to attract foreign investments and visitors while at the same time moving away from fossil energy. AI will be used in the Dubai Autonomous Transportation Strategy to organize and coordinate the autonomous transport systems, which would cut carbon emissions from private conventional movements, accidents and costs, thus reducing by 12% environmental pollution in Dubai (2021-2030). This is expected to generate 22 billion AED in revenues, and to have a positive impact on tourism in the city: in fact, by facilitating transport in the city, investing in sustainability and reducing emissions, the usual drawbacks of choosing a metropolis as a touristic destinations will significantly decrease, thus becoming more attractive to any visitor.

The UAE is moving towards an economic model based on non-oil revenues, investing in human capital, new technologies and self-promoting propaganda to entice foreigners (especially Western visitors and investors) with promises of safety, sustainable development, stability and a moral society (“We the UAE 2031”). As sustainability takes root as one of consumers’ highest concern and in the light of rapidly depleting oil deposits, the UAE seeks diversification and support from AI and other novel technologies. Nevertheless, given that most of the sources on the topic come from the government, as media censorship in the country is extensively used (HRW), this paper will also aim to research the results of the policies that have been presented so far. The UAE is an autocratic dynastic monarchy (Krane 10), and thus can afford to release few details in regards to their policies without any opposition source investigating. Therefore, the next section will look at specific examples and case studies to estimate whether governmental plans have been successfully implemented and to what degree were its goals achieved.

  1. Assessing the Success of the UAE’s Diversification Strategy: Examining the Growth

The UAE’s international perception is a positive indicator of its success. Indeed, it is seen as “the (business) capital of the Gulf-region,” with the potential to “become a post-oil metropolis of the twenty-first century” (Dijkhuizen). To better understand this statement, an assessment of the UAE’s diversification strategy will be attempted through an evaluation of its current projects and economic outcomes. For this purpose, three of its influential cities, Abu Dhabi, Dubai and Ras Al Khaimah, will be investigated. 

The Abu Dhabi government aspires for an economic transformation that will favor the creation of “an ideal business environment, reducing the reliance on the oil sector.” In line with this standard, according to the city’s most recent Statistical Yearbook, there were 18,452 new business licenses in 2019, as compared to 11,249 in 2018. From this same database, as regards tourism, the number of hotel guests increased by 2.1% and the number of rooms by 3.9% (Statistics Centre). 

In hand with this growth, there is a commitment to environmental preservation that is reflected through the development of the Estidama framework, Arabic for ‘sustainability’, and specifically, the Pearl Rating System (PRS) that it comprises. It was launched in 2010 by the ‘Department of Urban Planning and Municipalities (DPM)’ to address four pillars of sustainability: environmental, economic, social and cultural. Today, it stands as a mandatory guideline for all new buildings in Abu Dhabi, from their design to their operation. Thus, it is “the first mandated sustainability rating system in the Arab region” and “tailored to the Middle East region” (Emirates Green Building Council). Focusing on the environmental aspect, the PRS, enforces an integrated development process that preserves the region’s natural systems, the connectivity of outdoor and indoor spaces, and energy efficiency. Additionally, it stresses the use of renewable resources and the conservation of energy through “passive design measures” that encourage innovation (Abu Dhabi Urban Planning Council). 

The same goal for renewable energy inspired the development of Masdar city in Abu Dhabi, a city which combines “passive and intelligent design” to demand “40% less energy and water than local and international baselines” (Masdar City). From its launch in 2008, Masdar has responded to the dual objective of constituting a sustainable environment and serving as a hub for emerging eco-friendly technologies and research. The former has been tackled by having ‘air-to-water’ technology, namely the ‘SOURCE’ device, be its water supply, and a 10-megawatt array of solar panels (that produces 17,500MWh of electricity per year), be its electricity source. Notably, it also features autonomous vehicles, from the developer ‘NAVYA’ that mobilize visitors around the city in a safe manner. The latter objective is portrayed through the Bustami Smart Home Farming Showcase, where sustainable farming solutions are explored, as well as its educational outlets, integrated in communal spaces like the Central Park for tourists to visit. Today, new partnerships are being forged on its behalf, as it becomes a pioneer among the clean-tech clusters. Indeed, it has gained substantial media attention, with the Economist and CNN discussing extensively about Masdar City (Dijkhuizen). 

The economic consequences of the development of these initiatives for Abu Dhabi has aided its diversification in a manner that also makes contributions to sustainable human development. These efforts are visible in the decreasing carbon dioxide emissions, and the increase in the Emirate’s renewable energy, reaching 2,163,799MWh in 2019 (Statistics Centre). 

In Dubai similar achievements have taken place through its aspiration to attract tourists by becoming a ‘Smart City,’ leading its government to invest in technology and make infrastructural changes. Since 2011, the Dubai government has pushed ‘Green Building Regulations’ (GBR&S) as mandatory ecological standards for all new buildings in Dubai since 2014. They lay out instructions for optimizing energy, and reducing resource consumption as well as improving public health and general welfare (Maleki). To make these regulations enforceable under the Emirate’s jurisdiction and its ‘Free Zones,’ a similar approach to Abu Dhabi’s Pearl Rating System was upheld with the introduction of the  ‘Al Sa’fat rating system’ in 2016. Today, a building rating system is in place, where a ‘Silver’ rating is the mandatory baseline and additional requirements must be fulfilled to achieve the ‘Golden’ or ‘Platinum’ Sa’fa. 

Aside from building regulations, the idea of ‘Smart Dubai’ has progressed in the area of transport. The Dubai government has facilitated BRT (Bus Rapid Transit) as a means of public transportation that emits no emissions and takes tourists to the city’s main spots (Maleki). Similarly,  its RTA (Roads & Transport Authority) has committed to an ‘Environmental Stewardship’ leading to an 18% decrease in energy consumption in 2021 when compared to its 2016-2019 rates. For example, said decrease was facilitated by efforts to automate public parking machines, invest in hybrid vehicles for the Dubai Taxi Corporation (DTC), and deploy electric abras for tourists visiting the city’s annual ‘Global Village’ (RTA). 

Ras Al Khaimah, being less touristy than Abu Dhabi and Dubai, has focused its economic transition in construction. For instance, its own Green Building Regulations,’ named Barjeel, outline a strategy for energy and water savings. Its application became mandatory in 2019 for all new buildings in the Emirate. There are two levels of requirements, the fundamental and the comprehensive regulations. The former are rather simple and target smaller buildings whereas the latter address complex buildings. The Barjeel energy standards include a threshold for u-values for external walls and roofs, and a maximum Solar Heat Gain Coefficient (SHGC) for windows. These fixed values are in place to reduce the heat gain through the building’s façades. Moreover, because of the very warm weather of the UAE, air conditioning is indispensable, and thus there are regulations for buildings’ indoor conditions or ‘envelope’ performance. In particular, cold air leaks ought to be minimized. Further, there is a Barjeel Water Budget Calculator, which demonstrates a buildings’ baseline water consumption. And as for water heaters, the use of Solar thermal or thermodynamic solutions to supply “at least 75% of the annual domestic hot water demand”(Government of Ras Al Khaimah) is emphasized. 

Clearly, in the UAE, most initiatives in motion tackle the infrastructure of cities, refining its buildings’ compliance with set sustainable goals by Emirati. Nonetheless, there are eco-friendly tech-intensive projects developing in Abu Dhabi and Dubai, which serve to attract tourism, obtain foreign investment and move away from the country’s oil-dependency. 

  1. Challenges and Imperatives for the UAE’s Economic Diversification: the limits of AI as an engine of sustainable tourism development 

Artificial Intelligence (AI) has been increasingly integrated as part of the UAE’s diversification strategy and, more precisely, to develop the sustainable tourism industry. The need to improve operational efficiency, enhance customer experience, and find innovative ways to create new revenue streams are the main reasons behind this decision. However, and inevitably, the use of AI as an engine of sustainable development in the United Arab Emirates has limits and challenges that are important to acknowledge when discussing the future of this technology as a tool for large-scale economic diversification in the context of the UAE. This part of the paper will explore three main challenges that J. Bulchang-Gidumal explores in his paper “Impact of Artificial Intelligence in Travel, Tourism, and Hospitality” (2020) which are: the relationship between tourists and AI, the phenomenon of substitution of humans by machines, and finally touching upon the ethical issues related to AI.  

Artificial intelligence (AI) has become an integral part of modern society, providing numerous benefits and risks to users in various industries, including tourism. For tourists, AI can offer several benefits, such as helping them navigate unknown environments, reducing anxiety and fear, and creating unique and memorable experiences. However, there are also risks associated with AI, including concerns over surveillance, the potential for an AI divide, and the possibility of a society fully guided by technology.

One of the primary benefits of AI for tourists is its ability to assist them in navigating unfamiliar surroundings. By utilizing AI-powered navigation tools, tourists can find their way around new locations with ease, reducing their anxiety and fear. Furthermore, AI can help tourists discover new and exciting experiences, such as personalized recommendations for local attractions, restaurants, and events. However, the use of AI in tourism also raises several concerns, with privacy being a significant issue. AI systems have the capability to gather vast amounts of data, including personal information, and analyze it to derive patterns and information. As such, there is a risk of potential threats to privacy and data security, which can create fear and distrust among tourists. The fear of surveillance is another concern that arises with the use of AI in tourism. With the increasing reliance on AI-powered surveillance tools, tourists may feel uncomfortable with the constant monitoring and surveillance, leading to a negative impact on their travel experience. The potential for AI to be used for nefarious purposes, such as targeted advertising or tracking individuals’ movements, further amplifies these fears. Another significant risk associated with AI in tourism is the potential for an AI divide to emerge. As with the digital divide at the beginning of the century, there is a risk that certain segments of the population will be left behind due to their reluctance to participate in AI environments. This divide could arise due to the perceived risks associated with AI, including concerns over privacy and data security. Lastly, the growing use of AI in tourism raises questions about the future of society and the role of technology in our lives. There is a concern that the increasing reliance on AI could lead to a society fully guided by technology, where human interaction and decision-making become obsolete. This could have significant implications for the tourism industry, with tourists potentially having to choose between highly automated, efficient, and cost-effective services or luxury, human-based services.

Since the First Industrial Revolution, machines have been replacing humans in simple, routine tasks. However, the growth of AI and AI-empowered technologies has led to a new generation of machines, such as service robots, that can compete with and replace humans in almost every possible task. This puts the previously immune tourism sector at risk, with estimates suggesting that 25% of the hospitality workforce could be replaced by robots in the next decade. This displacement of workers is a major concern not only because of the loss of jobs but also because of the loss of a sense of belonging. While machines are good at algorithm-based and repetitive tasks, humans excel in generalization, perception, creativity, and interaction with the real world. Although initial consensus suggested that low-skilled jobs were more at risk, job polarization seems to point to a situation in which low- and high-skilled jobs are the safest from automation, with medium-skilled jobs being the most prone to being replaced by technology. In service contexts, technology can be used to enhance employees and liberate them from routine tasks, allowing them to provide better service. However, the challenge for the tourism industry is to maintain its sense of hospitality, which is one of its defining features.

AI is expected to have a significant impact on all areas of society, comparable to the impact of machines and computers during the Fourth Industrial Revolution. However, this creates ethical challenges that need to be addressed. Loss of privacy and fear of a society completely guided by technology are two of the main concerns. Another critical issue related to the widespread use of AI is bias, which is present in all humans and can be amplified by the powerful capabilities of AI algorithms. To address this, it has been recommended that AI systems should be transparent, robust, and predictable to prevent biased structures from being replicated. Additionally, these systems must be able to make balanced decisions that benefit all participants, and if super intelligence is developed, ethics should be an essential feature of AI systems.

Overall, the paper’s focus on sustainable tourism and AI only covers one area in which the UAE wishes to invest in order to expand its economic diversification process. The reason is tied to the lack of literature on the matter, as most analyses in the UAE context focus on the implementation of AI in sustainable tourism, rather than on its effect on economic heterogeneity and withdrawal from oil dependence (Hussein Al-shami et al., Samala et al). Furthermore, other sources on the topic focus rather on digital and knowledge economy and finance, research, industry and aviation, which includes space technology (Antwi-Boateng and Jaberi). The lack of fact-checking alternative sources to governmental news limits the scope and effectiveness of the paper’s argument. Therefore, in the future, further research should be done on the field, possibly publishing the findings outside of the UAE, in order to get a more balanced view on the extent of the Emirates’ policies success.

Nevertheless, a certain narrative emerges from the examination of governmental sources regarding the UAE’s vision for economic diversification. The government, both on a single Emirate and national levels, has a clear vision on how to effectively reach a high degree of independence from revenues coming from oil exports. In the short term, its policies on how to complement sustainable tourism with AI stretch from food waste to personalized recommendations to tourists, positioning the UAE and Dubai in particular as one of the top tourist destinations in the Middle East. Tourism, and consequently sustainable tourism, being one of the UAE’s highest income sectors and a key target in the diversification process, is the object of more and more strategies planned to be implemented in the long term future. In fact, reducing carbon emissions, achieving higher pervasiveness of AI technology in all sectors of the economy, i.e. in the touristic one, and attracting foreign investment will place the UAE not only amongst the best touristic destinations in the world, but also among the most powerful and influential countries in terms of economic and soft power. Developments in infrastructure and transportation policy, paired with the arrangement of smart projects, such as the Smart Dubai initiative and Masdar City, have already produced favorable results in terms of lowering emissions and attracting tourists and business. An evaluation of these developments paints a promising picture for the UAE’s economic diversification, as it heads towards a tech-oriented economy.

Nonetheless, AI’s benefits are counterbalanced by its risks. Foreign tourists, especially those coming from liberal countries with low degrees of governmental control on the population, might feel reluctant by the idea that a country not as transparent, such as the UAE, may collect their personal data in order to provide higher quality services. In terms of soft power, both tourism and data gathering are essential: the more people visit the UAE and find a society with a high level of development, tales of tolerance and active efforts towards sustainability (destination branding tactics), the more the UAE can channel soft power to get visitors to empathize and appreciate the country, and the more data it can gather to get the upper hand on rival nations. Therefore, this paper prompts the international community to keep monitoring the development of technology vis à vis sustainable tourism in the UAE.

– Ananya Goyal, Francesca Pilia, Maria Sofia Malavar, Qamar Mouncef

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