DUBAI – October 27, 2025: The Gulf Cooperation Council (GCC) is entering a new phase of economic transformation, driven by innovation and the rapid adoption of Generative AI (GenAI), according to a new report by global consultancy Bain & Company. The study highlights that the rise of AI-powered agentic systems is reshaping industries, unlocking new business models, and positioning the GCC as a global benchmark for technology-led growth.
AI as the Engine of Future Growth
Bain & Company’s research identifies that 67% of the world’s top 100 companies are already pursuing ‘Engine 2’ strategies — building innovative new businesses alongside their existing cores. This dual approach, combining AI-driven reinvention with bold innovation, is emerging as the key differentiator for resilience and competitiveness.
“Generative AI is creating entirely new ways of doing business while reshaping existing models at their core,” said Sami Abdul Rahman, Partner at Bain & Company Middle East.
“True innovation now means balancing both—building on what works while exploring what’s next. Organizations that embrace ‘Engine 2’ strategies will be best positioned to redefine their industries.”
GCC Leading Global AI Adoption
The study underscores the GCC’s accelerating AI momentum, particularly in Saudi Arabia, where nearly 75% of government entities rank at or above proficient levels in AI readiness, and over 40% are already experimenting with AI deployment. On the private sector side, 95% of Saudi firms view AI as critical to success—well above the global average of 87%.
Furthermore, 92% of Saudi CEOs expect Generative AI to be systematically embedded in their organizations within the next three years, compared to 78% globally, highlighting the Kingdom’s leadership in AI-driven transformation.
Jack Nolan, Senior Manager at Bain & Company Middle East, noted:
“AI adoption in the GCC is advancing faster than in most regions. The combination of government vision and private-sector ambition is fueling Engine 2 opportunities—where new business models are born, and old ones are reinvented.”
A Blueprint for Resilient Growth
The report emphasizes that Generative AI is transforming both innovation and product differentiation, with 56% of global executives expecting AI to significantly reshape their industries. The GCC’s focus on embedding AI in governance, industry, and finance positions it as a leader in navigating disruption with intent and agility.
In a climate of uncertainty and global competition, Bain concludes that the region’s leaders must think “future-back” — investing boldly in AI, building agile ecosystems, and scaling Engine 2 opportunities to sustain long-term competitiveness.
“The future belongs to innovators,” said Nolan. “Those who place AI at the heart of their growth strategies and act with intent today will define the next decade of prosperity for the GCC.”
