The adoption of 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 for potentially 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 robust public and private sector investments.
Saudi Arabian institutions are also showing momentum in adoption, while prioritising operational modernisation and strategic partnerships. In both regions, institutions have deprioritised marketing use cases for genAI.
Instead, firms are utilising it within core processes, such as for Know Your Customer (KYC) or Anti-Money Laundering (AML) checks, improving risk management and decision-making, and enhancing IT operations.
Adam Lieberman, Chief AI Officer at Finastra, commented,
“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 highlights that personalised customer experiences enabled by AI are becoming standard expectations in financial services.
UAE banks, in particular, excel in this area, deploying advanced AI-driven chatbots for seamless, contextually aware customer interactions available around the clock.
With Saudi Arabia (93%) and the UAE (90%) among the global leaders in enthusiasm towards AI, the region could harness substantial value.
PwC projects AI will contribute US$320 billion to the Middle Eastern economy by 2030, while McKinsey estimates the global banking sector could see an additional US$1 trillion annually from AI-driven efficiencies.
As AI systems become more advanced, agentic AI is also proving to be a game-changer for enhancing user experiences and driving further efficiency gains.
Featured image credit: edited from freepik
