The adoption of artificial intelligence (AI) in the Middle Eastern banking sector could significantly contribute to regional economic growth, potentially adding as much as 13.6% to GDP by 2030, according to industry analysts. Finastra’s Financial Services State of the Nation 2024 survey reveals that banks in the UAE and Saudi Arabia are already accelerating their deployment of AI, positioning the region on the brink of substantial economic and operational advancements.
The report highlights that the UAE ranks among the top global adopters of AI in financial services, with 71% of its institutions having deployed or enhanced AI capabilities in the past year, supported by strong investment from both the public and private sectors. Saudi Arabian institutions also demonstrate momentum in adoption, while prioritising operational modernisation and strategic partnerships. In both countries, institutions have deprioritised marketing applications for generative AI (Gen AI). Instead, firms are implementing it in core processes such as Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, thereby improving risk management, decision-making, and IT operations.
Adam Lieberman, Chief AI Officer at Finastra, stated: “The Middle East’s forward-thinking regulators, solid digital infrastructure, and receptive customer base create an ideal environment for banks to leverage AI. Banks utilising cloud-native platforms and unified data environments will not only maximise the benefits of AI for workforce productivity, but also significantly boost their capacity for innovation, risk management, and geographic expansion.”
The report further notes that personalised customer experiences enabled by AI are becoming standard expectations in financial services. UAE banks particularly stand out in this domain, deploying advanced AI-driven chatbots that provide seamless, contextually aware customer interactions available around the clock.
With Saudi Arabia (93%) and the UAE (90%) ranking among the global leaders in AI enthusiasm, the region stands to unlock significant value. PwC projects that AI will contribute US$320 billion to the Middle East economy by 2030, while McKinsey estimates that the global banking sector could realise an additional US$1 trillion annually through AI-driven efficiencies. As AI systems advance, agentic AI is also proving to be transformative in enhancing user experiences and driving further efficiency gains.
Finastra remains committed to supporting Middle Eastern banks through strategic collaboration and advanced technology solutions, enabling institutions to fully realise the immense potential of AI.
