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AI's Growing Role as a Growth Catalyst for Middle East's Public & Private Sector

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AI's Growing Role as a Growth Catalyst for Middle East's Public & Private Sector

Rachita Sharma, Managing Editor, 0

The world is currently undergoing a technological renaissance and this transformation is being driven by Artificial Intelligence (AI).

AI has become one of the most influential technologies to hit the market in the last decade or so. From a young child watching AI generated cartoons to a tech CEO boosting his company’s performance through agentic AI, there’s hardly anybody in the world who has not been touched by AI. The emergence of new-age AI tools has not just revolutionized industries but have also made us reconsider how we live, work, communicate and more.

As AI’s role as the workhorse of the business strategy and transformation solidifies, regions across the world are increasingly moving towards adopting AI.

A closer look at the Middle East tells a similar story. AI’s significance has been growing rapidly across the Middle East and reports suggest that it could contribute about $320 billion to the regional economy by 2030.

This massive rise in AI’s contribution is only possible with AI being widely adopted. Most countries in the Middle East are well ahead in their endeavour to take advantage of AI and are making significant investments in upping their AI infrastructure.

Being led by the UAE and Saudi Arabia, the Middle East’s AI infra growth stands at 75% adoption rate, surpassing global averages.

A recent report by Roland Berger Middle East delved deep into AI adoption across the GCC. It concluded that both public and private sectors are welcoming AI adoption with open arms. Looked at as a ‘strategic priority’, almost 80 percent of organizations across the Gulf have embedded AI into their strategic plans.

Investment in AI adoption is also at an all-time high across the Gulf, with close to 85% of organizations expecting their AI budgets to rise in 2026.

It is pertinent to note that All GCC countries, namely the UAE, Saudi Arabia, Qatar, Bahrain, Kuwait, and Oman, have either implemented national AI strategies or are on their way to develop them.

Going forward, it will be interesting to watch how AI disrupts business and life across the Middle East. From the looks of it, we are just getting started.

Do let us know your thoughts.

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