The integration of artificial intelligence (AI) into the Middle Eastern banking sector is expected to drive significant economic growth, potentially contributing up to 13.6% to the region’s GDP by 2030, according to industry analysts.
Finastra’s 2024 Financial Services State of the Nation survey indicates that banks in the UAE and Saudi Arabia are rapidly advancing their AI deployments, positioning the region for considerable economic and operational benefits.
The report reveals that the UAE is among the world’s top adopters of AI in financial services, with 71% of UAE institutions having implemented or enhanced AI capabilities over the past year, fueled by strong investments from both public and private sectors. Saudi Arabia is also seeing increased adoption, with a focus on modernizing operations and forming strategic partnerships. Interestingly, both countries have deprioritized generative AI (Gen AI) for marketing, opting to use AI in core processes such as Know Your Customer (KYC), Anti-Money Laundering (AML) checks, risk management, decision-making, and IT operations.
Adam Lieberman, Chief AI Officer at Finastra, emphasized that the Middle East’s progressive regulatory environment, robust digital infrastructure, and receptive customer base make it an ideal region for banks to harness AI. He added that banks using cloud-native platforms and unified data environments can fully leverage AI to boost workforce productivity, drive innovation, improve risk management, and expand geographically.
The report also highlights the growing expectation for personalized customer experiences powered by AI. UAE banks are particularly excelling in this area, with advanced AI-driven chatbots providing seamless and context-aware customer support 24/7.
With both Saudi Arabia (93%) and the UAE (90%) showing high enthusiasm for AI, the region stands to gain substantial value. PwC projects AI will contribute $320 billion to the Middle East economy by 2030, while McKinsey forecasts that the global banking sector could see an additional $1 trillion annually from AI-driven efficiencies.
As AI systems continue to evolve, agentic AI is emerging as a game changer for enhancing user experiences and further boosting efficiency. Finastra is committed to supporting Middle Eastern banks by offering strategic collaboration and advanced technology solutions to help them fully capitalize on AI’s vast potential.
