According to industry analysts, adopting artificial intelligence (AI) in the Middle Eastern banking sector could significantly contribute to regional economic growth, potentially adding as much as 13.6% to the GDP by 2030.
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, putting the region on the cusp of 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 improved AI capabilities in the past year, supported by substantial public and private sector investments.
Saudi Arabian institutions also show momentum in adoption alongside prioritizing operational modernization and strategic partnerships.
In both regions, institutions have deprioritised marketing use cases for generative AI (Gen AI). Instead, firms utilise 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, noted, “The Middle East’s forward-thinking regulators, solid digital infrastructure, and receptive customer base create an ideal environment for banks to leverage AI. Banks utilizing cloud-native platforms and unified data environments will maximise AI’s benefits for workforce productivity and significantly boost their capacity for innovation, risk management, and geographic expansion.”
The report further highlights that personalized customer experiences enabled by AI are becoming standard expectations in financial services. UAE banks particularly excel in this area, deploying advanced AI-driven chatbots for seamless, contextually aware customer interactions that are available around the clock.
The region could harness substantial value with Saudi Arabia (93%) and the UAE (90%) among the global leaders in enthusiasm towards AI. PwC projects AI will contribute $320 billion to the Middle East economy by 2030, while McKinsey estimates the international banking sector could see an additional $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.
Finastra remains dedicated to supporting Middle Eastern banks through strategic collaboration and advanced technology solutions, enabling institutions to fully realize AI’s immense potential.
