How AI Strategies Are Transforming Middle Eastern Economies
Systematic investment in Artificial Intelligence has become a cornerstone of economic transformation across the Middle East, with AI penetration reaching record levels by 2025. For example, AI adoption in the UAE has reached 59.4% among the working-age population, while Qatar stands at 35.7%.
On average, more than 60% of companies across the MENA region are actively integrating AI into their operations. PwC analysts forecast that by 2030 AI will contribute a total of USD 320 billion to the region’s economy (around 2% of global AI gains), with Saudi Arabia and the UAE alone capturing USD 231 billion — up to 14% of GDP. Annual AI-driven economic growth is expected to reach 20–34% across the region, with the UAE and Saudi Arabia leading the momentum.
Key Sectors: Figures and Performance Indicators
Among the leading sectors for AI adoption are construction, manufacturing, and industry (USD 100 billion in investments, 31% of the total), energy and natural resources (USD 78 billion, 24.5%), as well as healthcare, fintech, education, and the public sector (USD 56 billion, 18.5%). The financial sector stands to gain the most: according to the World Economic Forum and PwC, by 2030 AI in banking will account for 13.6% of GCC GDP, while 25% of all AI investments will go into financial services. Companies across the region report productivity gains and new levels of optimization driven by generative AI models, with annual contributions to non-oil GDP reaching USD 21–35 billion.
A recent McKinsey study (November 2025) shows that GCC companies are rapidly moving from pilots to full-scale AI integration: 86% of respondents already use AI agents in daily workflows (compared to 69% globally). Boston Consulting Group’s report “The GCC AI Pulse” highlights the region’s position as a mix of AI Contenders (Saudi Arabia and UAE) and AI Practitioners (other GCC countries), underpinned by strong national ambition and advanced digital infrastructure.
Regulatory and Regional Dynamics
Governments across the region are building a cutting-edge institutional framework to ensure ethical and secure deployment of new technologies. In 2024–2025 alone, several countries — including the UAE and Saudi Arabia — enacted laws on AI ethics and personal data protection, introduced mandatory data localization requirements, and limited cross-border data transfers to cases with special approvals. Localization of technology has become a strategic imperative: national AI models for the Arabic language are positioned as a technological breakthrough, and 57% of GCC businesses now allocate more than 5% of their IT budgets to AI.
The joint Deloitte and MBZUAI report “State of AI in the Middle East 2025” emphasizes a gap between corporate ambition and readiness: shortages of local AI talent, weaknesses in strategic planning, and infrastructure gaps, remain key challenges. Ethical and linguistic standards, mandatory content labeling, and anti-discrimination safeguards have become baseline requirements for all AI solutions.
The Future: Growth Strategy
MENA countries have moved beyond isolated pilots to large-scale national initiatives, outpacing many developed markets in the speed of AI adoption. The regional AI industry is growing at an average annual rate of 28.6%, and by 2030 the GCC AI market is expected to exceed USD 15.4 billion. Leading players are implementing long-term AI roadmaps, deploying federated machine-learning and data-management architectures, and expanding specialized educational pathways.
According to the World Economic Forum’s October 2025 report, extensive use of AI tools in sustainable finance could mobilize an additional USD 200 billion in capital for MENA by 2030, closing up to 30% of the region’s USD 675 billion financing gap and preventing more than 60 million tons of CO₂ emissions. In the financial sector alone, AI technologies are projected to deliver USD 38 billion in added value by 2030 (13.6% of the industry).
In sum, AI strategies are evolving from isolated innovation drivers into a long-term foundation for competitiveness, diversification, and sustainable growth across Middle Eastern economies.
