November 3, 2025 — The Middle East is fast establishing itself as a global leader in artificial intelligence (AI) productivity and investment, according to two major new studies that reveal how the region is driving economic transformation through strategic adoption of AI technologies and forward-thinking investment.
AI Productivity Gains Across the UAE
IBM’s report, “The Race for ROI,” highlights that 77% of UAE executives report significant operational productivity improvements through AI — far above the EMEA regional average of 66%. Nearly half (44%) expect measurable returns on AI investments within the next year, driven by cost savings, efficiency gains, revenue growth, and improved employee satisfaction.
The report shows that AI is reshaping business models across the UAE — with 25% of leaders citing AI as a fundamental driver of transformation and one-third using it to accelerate innovation and decision-making. Notably, 47% of UAE organizations emphasize inclusive AI workforce transformation, reflecting a regional focus on empowering people rather than replacing them.
Strategic collaborations such as AWS–IBM, du–Emirates NBD, and e& UAE–LabLabee are also accelerating enterprise AI adoption, enabling organizations to optimize digital infrastructure and unlock new business value.
Shifting Global Investment Flows Toward the Middle East
A second study by the FII Institute, titled “Rebalancing Intelligence,” underscores the Middle East’s growing appeal as a destination for global AI investment. It finds that 87% of global investors plan to increase AI investments in the Global South, with the Middle East, India, and Southeast Asia emerging as key hubs.
While the Global South currently attracts just 28% of AI-related foreign direct investment (FDI), the report notes that the balance is shifting rapidly as the region’s young population, robust digital infrastructure, and pro-innovation regulatory frameworks fuel investor confidence.
The UAE and its neighbors are leading this evolution by demonstrating early AI return on investment, building open, interoperable systems, and upholding ethical AI governance. These efforts are positioning the region as a credible, competitive AI hub with global influence.
Architecting an AI-Powered Future
This alignment between domestic productivity success and international investment momentum signals a pivotal moment for the Middle East. The region is no longer merely adopting AI — it is architecting a future economy powered by AI, blending innovation, inclusivity, and strategic foresight to shape a more resilient, data-driven, and connected world.
