Economy… Shaping the Global Media Landscape

ABDULLA BIN MOHAMMED BIN BUTTI AL HAMED

Media plays a vital role in driving economic growth, from showcasing achievements and developments to generating revenue and attracting investment that fuels the national economy.In reality, media has never been merely a tool for entertainment or news dissemination, but an economic industry in itself, playing a vital role in shaping national and global economies.Media uses its tools to influence decision-makers, public opinion, and economic policies through its role in providing information, interpreting, and covering economic events.Media activities hold a distinguished position in the economy of every country. This is evident through the jobs created, the volume of business, and the industries connected to media.The media industry is one of the largest in the world, helping shape the economy, politics, and society’s culture, and then re-exporting them globally. Media now invests in knowledge in a world witnessing a continuous technological revolution across various fields.Naturally, the goal of media is no longer just to provide information and coverage; it has transformed into an industry requiring vast capital. This industry now plays a significant role in driving growth, leading to the emergence of the term “media economics”, which focuses on meeting the audience’s needs through quality services that generate profitable financial returns, ensuring the continuity of media activity.Media can be considered a cornerstone of the economy and development, effectively and efficiently promoting economic and investment opportunities, through both digital and traditional media.There is no doubt that the relationship between media and the economy is close and intertwined, as media helps guide economic policies, shares expert opinions, presents their analyses, and opens public debate on new decisions. This assists decision-makers in making informed decisions based on the analyses, data, and forecasts provided.The UAE places significant importance on the creative economy, with media being one of its primary supporters. Media is one of the fastest-growing economic sectors globally, contributing approximately 6.1 percent to the global GDP, with annual revenues exceeding US$2 trillion. Therefore, the UAE works to attract creative talents, investors, and skilled professionals from around the world.To support the creative economy, the UAE has launched multiple programmes and initiatives, most notably the “National Strategy for the Cultural and Creative Industries”. This strategy strengthens the partnership between cultural and creative industries and the national economy, positioning the UAE as a hub for global talent and creativity.One aspect of the interconnectedness between media and the economy is the view that media often serves the interests of economic elites. This is evident globally, with few large companies dominating the media industry, potentially limiting the diversity of voices and perspectives available to the public, as well as resulting in media content serving the agendas of profit-driven companies and enhancing their interests.It is evident that advertising and funding direct media content towards the interests of advertisers to some extent, affecting the neutrality of the media message. This is where countries step in, through legislation and regulations, to prevent monopolies and ensure that concentrated media ownership does not undermine the public’s right to knowledge and transparency in media content.Given the need for funding and investment, media must develop innovative revenue models. New revenue streams are expected to emerge in advertising, live broadcasting, and emerging markets, especially after the entertainment and media industries regained balance, with global revenues rising by 5 percent to US$2.8 trillion in 2023.Over the next five years, the industry is projected to grow at a compound annual growth rate of 3.9 percent, with total revenues expected to exceed US$3.4 trillion by 2028.On another note, the advent of artificial intelligence (AI) has brought significant effects – including opportunities and challenges – for companies in the media and entertainment sectors. The UAE recognised this early on, prompting it to increase investments in technological infrastructure and support innovation in this area.The announcement witnessed by President His Highness Sheikh Mohamed bin Zayed Al Nahyan of the launch of a cooperation framework on AI between the UAE and the United States during his recent visit to Washington, forms part of efforts to invest in advanced technologies.This cooperation is expected to have a profound impact on the media sector, which can benefit from its outcomes, enhancing its ability to keep pace with rapid digital transformations, contributing to boosting the media economy and increase its influence regionally and globally.The directives of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, have drawn a roadmap for the UAE’s media system.His Highness stressed the need for the media sector to keep up with the world’s latest technological advancements in media production and shaping media influence. Thanks to his close follow-up, the UAE’s media sector has made, and will continue to make, a qualitative leap in leveraging advanced technologies to lead the country’s media industry.When discussing advanced technologies and their role in the media economy, it is essential to highlight the efforts of the UAE’s AI pioneer, H.H. Sheikh Tahnoun bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi, National Security Adviser and Chairman of the Artificial Intelligence and Advanced Technology Council (AIATC). His Highness is building a future where technology plays a vital role in serving humanity, enhancing well-being, and fostering sustainability and global connectivity.There is no doubt that the initiatives launched by H.H. Sheikh Tahnoun will have a significant impact on the media sector. One such initiative is the global AI partnership between MGX, BlackRock, Global Infrastructure Partners, and Microsoft to invest in data centres, which was recently announced by His Highness.This initiative will benefit the media sector, as investing in large data centres provides media with access to advanced technological infrastructure offering immense processing capabilities, enabling faster and more efficient content creation.The UAE’s advanced telecommunications infrastructure has also had a substantial impact on media economics, as the UAE was one of the first to invest in the telecommunications sector, and this is reflected in its top global ranking for telecommunications infrastructure readiness in the United Nations 2024 report.This infrastructure enables media entities to adopt the latest technologies and embed innovation, while also attracting foreign investments to the sector.In conclusion, the media economy has become a driving force that has reshaped the global media landscape. It is no longer just an interaction between supply and demand but a complex system in which technology, politics, and culture intertwine.Rapid technological transformations in the digital age have created a new reality and triggered a fundamental shift in the industry. However, the challenge remains in delivering modern, innovative media and engaging content that serves national interests and revitalises economies, while adapting to technological advances to achieve competitive revenues and sustainable growth for media institutions.

Abdulla bin Mohammed bin Butti Al Hamed is the Chairman of the National Media Office and Chairman of the Board of Directors of the UAE Media Council