Artificial Intelligence (AI) may well be the defining word of 2025. It has sparked global conversations, disrupted industries, and inspired everything from job market shifts to animated masterpieces. While the world is focused on AI giants like the USA and China, the Middle East has been quietly building up its own AI strength.
Vision AI
Between 2017 and 2019, the UAE appointed the world’s first government minister for AI and established the Mohamed Bin Zayed University of Artificial Intelligence (MBZUAI) in Abu Dhabi. Significant initiatives are part of the UAE’s strategy for AI 2031. According to PwC, the Middle East could gain around USD 320 billion from AI by 2030.
Early Mover Advantage
Vision 2030 was for a futuristic economy, and AI adoption has pushed that agenda to the centre stage. India took the lead in software talent exports and services in the late nineties, and the Middle East is going for the early-mover advantage in AI. The Middle East’s investment in creating its homegrown LLMs (Large Language Models) and generative AI for automating communication and data processing is commendable.
Fintech Meets AI
Banking and fintech have been quick to adopt AI (Fin AI) into streamlining their services and cost efficiency. Ila Bank of Bahrain and E20 of UAE are digital-only banks built on AI models and mobile services for a future fintech sector. A strong and transparent regulatory ecosystem has added to the efforts. McKinsey predicts AI could generate USD 1 trillion of value additions in fintech – the Middle East, with its oil commerce and banking hubs, is ready to take a big slice of the pie.
McKinsey predicts AI could generate USD 1 trillion of value additions in fintech - the Middle East, with its oil commerce and banking hubs, is ready to take a big slice of the pie
Building from Within: Skilling and Self-Reliance In AI
Building its own AI models and skilling its future generations and public in AI adoption could exponentially change the way the Middle East can leverage this new wave of technological innovation. This self-reliant approach not only ensures future competitiveness but also establishes the region as a potential global AI hub.
AI Start-Up Ecosystem
The AI start-up scene in the Middle East is heating up, too. Intelmatix, a Saudi-based deep-tech AI start-up, secured the largest funding in the MENA region, a whopping USD 20 million. Dubai, with its large banking and hospitality business, has been quick to adopt AI for job transformations, greater resource efficiency, and elevating customer experience.
Institutional support has been critical. Abu Dhabi’s Artificial Intelligence and Advanced Technology Council (AIATC) and Saudi Arabia’s Data and Artificial Intelligence Authority (SDAIA) are initiatives that highlight the government’s concerted efforts towards making AI mainstream in the region.
The Middle East has long struggled with an oil-dependent economy and political challenges. To create and leverage its commercial strength in an emerging tech-connected and data-managed world, artificial intelligence can become its greatest lever and leverage. The initiation has been strong. The pivot must be stronger.
