AI in the Middle East 2025: Adoption Trends, Readiness, and Risk Landscape
Description
yStats.com Report: AI in the Middle East 2025 – Adoption Rising, Risks Mounting, Readiness Gaps Persist
AI adoption advances, but scaling proves difficult
By late 2024, nearly six in ten Middle Eastern firms reported rapid AI uptake, though only a fraction, around one to three in ten, had expanded it across business functions. Persistent skills gaps, uneven cloud access, and governance issues continue to impede progress.
Financial services at the forefront, risk levels remain high
In 2024, nearly nine in ten GCC CEOs reported GenAI use, surpassing global averages. Yet more than six in ten firms highlight cybersecurity threats, and over half cite compliance as their top concern. Rising costs and talent shortages further hinder broader rollout.
“AI adoption is advancing across the Middle East, with financial services among the leading sectors,” said Yücel Yelken, Founder and CEO of yStats.com. “At the same time, organizations face clear readiness gaps in skills, infrastructure, and governance that will shape the pace of implementation.”
National strategies accelerate investment
Saudi Arabia, the UAE, and Qatar are pursuing ambitious national AI programs, supported by sovereign wealth funds and evolving policies. In Qatar, the market is set to grow from over EUR 380 million in 2024 to nearly EUR 1.8 billion by 2030, reflecting close to 30% annual growth. Across the GCC, GenAI is expected to generate more than USD 23 billion each year, equal to roughly 2% of GDP.
AI adoption advances, but scaling proves difficult
By late 2024, nearly six in ten Middle Eastern firms reported rapid AI uptake, though only a fraction, around one to three in ten, had expanded it across business functions. Persistent skills gaps, uneven cloud access, and governance issues continue to impede progress.
Financial services at the forefront, risk levels remain high
In 2024, nearly nine in ten GCC CEOs reported GenAI use, surpassing global averages. Yet more than six in ten firms highlight cybersecurity threats, and over half cite compliance as their top concern. Rising costs and talent shortages further hinder broader rollout.
“AI adoption is advancing across the Middle East, with financial services among the leading sectors,” said Yücel Yelken, Founder and CEO of yStats.com. “At the same time, organizations face clear readiness gaps in skills, infrastructure, and governance that will shape the pace of implementation.”
National strategies accelerate investment
Saudi Arabia, the UAE, and Qatar are pursuing ambitious national AI programs, supported by sovereign wealth funds and evolving policies. In Qatar, the market is set to grow from over EUR 380 million in 2024 to nearly EUR 1.8 billion by 2030, reflecting close to 30% annual growth. Across the GCC, GenAI is expected to generate more than USD 23 billion each year, equal to roughly 2% of GDP.
Table of Contents
77 Pages
- 1. Key Takeaways
- 2. Management Summary
- 3. AI Adoption Landscape & Regional Patterns
- 3.1. Regional Adoption Benchmarks
- Middle East: Organizational AI Adoption Speeds, in % of Respondents, Oct–Dec 2024
- Middle East: AI Implementation Levels by Business Function, in % of Respondents, Oct–Dec 2024
- GCC & Middle East: Companies’ GenAI Adoption, in % of Respondents, October-November 2024
- GCC: GenAI Adoption by Business Function, in % of Respondents, May 2024
- GCC & Mid. East: Expectations for Profit Impact of GenAI, in % of Resp. Anticipating Net Increase, Oct-Nov 2024
- GCC & Mid. East: Net Increase from GenAI Adop. Across Five Business Metrics, in % of Resp., Oct-Dec 2024
- 3.2. Seller Segmentation & Barriers
- Middle East: Barriers to AI Development and Deployment, in % of Respondents, Oct-Dec 2024
- Saudi Arabia & UAE: Barriers to Accelerating GenAI Adoption, in % of Organizations, August 2024
- Middle East: Challenges in Attracting AI Talent by Country, in % of Respondents, Oct-Dec 2024
- Middle East: Linguistic Barriers, Cloud Gaps, Talent Cost Pressures, and Regulatory Challenges, July 2025
- Middle East: Budget Overruns, Financial Planning Deficits, and AI Project Termination Risks, July 2025
- Saudi Arabia & UAE: Data-Related Barriers Slowing AI Adoption in Finance, in % of Org., August 2024
- Saudi Arabia & UAE: Data-Related Barriers Slowing AI Adoption in Retail & Wholesale, in % of Org., Aug. 2024
- Saudi Arabia & UAE: Data-Related Barriers Slowing AI Adoption in Hospitality & Accommodation, in % of Org., August 2024
- Saudi Arabia & UAE: Data-Related Barriers Slowing AI Adoption in Media, Entertainment & Gaming, in % of Org., August 2024
- Saudi Arabia & UAE: Data-Related Barriers Slowing AI Adoption in Government, in % of Org., August 2024
- 3.3. Regional Country Deep Dive
- Saudi Arabia: GenAI Readiness, Infrastructure Scale-Up, and Sector-Specific Application Rollout, July 2025
- Saudi Arabia: Leading GenAI Use Cases by Application Type, in % of Respondents, Oct-Dec 2024
- Saudi Arabia: GenAI Risks in Data, Labor, Society, Sovereignty, and AI Integrity, July 2025
- UAE: Leading GenAI Use Cases by Application Type, in % of Respondents, Oct-Dec 2024
- UAE: AI Integration Across Aviation, Retail, Financial Services, Logistics, and Telecommunications, July 2025
- UAE: AI-Driven Operational Scaling, Analytics Deployment, and Capability Development, July 2025
- UAE: AI Talent Development via Youth Initiatives, Workforce Reskilling, and Institutional Support, July 2025
- UAE: Strategic Partnerships, Scalable Infrastructure, and Innovation in National AI Landscape, July 2025
- UAE: Centennial 2071 Vision, Interagency AI Execution, and Adaptive Digital Regulation, July 2025
- Qatar: AI Market Value, in QAR billions, 2024e & 2030f
- Qatar: AI Investments, Localized Language Tools, Urban Tech Initiatives, and SME Support, July 2025
- Qatar: Leading GenAI Use Cases by Application Type, in % of Respondents, Oct-Dec 2024
- 4. Functional Use Cases & Economic Impact
- 4.1. E-Commerce Seller Operations
- Middle East: GenAI Efficiency, Cloud-Enabled Scalability, and Data Localization Compliance, July 2025
- Middle East: Top AI Applications in Daily Operational Use, in % of Respondents, Oct–Dec 2024
- 4.2. Payments & FinTech Use Cases
- MENA: AI-Driven Personalization, Risk Management, and National Investment in Financial Services, July 2025
- MENA: AI-Driven Personalization, Risk, Fraud Detection, and Compliance in Financial Services, July 2025
- Middle East: GenAI in Fraud Detection, Risk, Customer Engagement, and Financial Automation, July 2025
- Middle East: GenAI Automation, Service Gains, and Talent Gaps in Financial Sector Strategy, July 2025
- Saudi Arabia & UAE: Current & Future Gen AI Investment Plans by Business Function, in % of Org., Aug. 2024
- Saudi Arabia & UAE: Gen AI Investment Allocation, in % of Organizations, August 2024
- 5. Risk Management, Trust & Security
- 5.1. Fraud & Threat Trends
- GCC: Top Risks of Generative AI Adoption, in % of Respondents, Aug–Sep 2024
- Middle East: AI-Related Operational Threat Levels by Country, in % of Respondents, Oct–Dec 2024
- 5.2. Detection Tools & Risk Models
- Middle East: AI-Powered Financial Threat Detection, TPRM Pilots, and Infrastructure Security, July 2025
- Middle East: AI Risk Management Measures, in % of Respondents, Oct–Dec 2024
- 5.3 Trust & Readiness
- Middle East: AI Preparedness Levels by Organizational Areas, in % of Respondents, Oct–Dec 2024
- Saudi Arabia & UAE: Availability Status of Responsible AI Policies, in % of Respondents, August 2024
- 5.4. Regulation & Compliance
- Middle East: AI Value Measurement Practices by Country, in % of Respondents, Oct–Dec 2024
- MENA: AI Regulation in Finance via Ethics Principles, Data Laws, and Innovation Sandboxes, July 2025
- 6. Competitive Landscape & Strategic AI Movement
- 6.1. Market Scale & Activity
- MENA: AI-Driven IT Spending Growth, in USD billions, 2024 & 2025f
- META: AI Spending and Growth Outlook, in USD Billions, 2024 & 2028f
- MENA: Projected GDP Share from AI vs. Other Sources, in % of Total GDP, 2030e
- 6.2. Strategic Moves by Key Players
- Middle East: GenAI Integration, Arabic LLM Growth, Sector Adoption, and Enterprise AI Strategy, July 2025
- Saudi Arabia & UAE: Most Strategic GenAI Technology Partners by Type, in % of Respondents, Aug 2024
- 7. AI Governance, Regulation & Innovation Enablers
- 7.1. Public & Private Sector AI Initiatives
- GCC: GenAI Economic Impact, Top Use Cases, Strategic Enablers, and Deployment Barriers, July 2025
- Saudi Arabia & UAE: Awareness of Key Government-Led AI Initiatives, in % of Respondents, Aug 2024
- 7.2. Regional AI Innovation Frameworks
- Middle East: Data Capability Enhancements for AI, in % of Respondents, Oct–Dec 2024
- GCC: AI Strategies, Infrastructure Development, and Capability Gaps by Maturity Segment, July 2025
- GCC: Country-Level AI Progress in Investment, Infrastructure, and Capability Building, July 2025
- Saudi Arabia & UAE: AI Investment Priorities by Value Chain Segment, in % of Respondents, Aug 2024
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