A new report by Deloitte, the leading global professional services firm, in collaboration with Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), revealed the immense opportunities presented by artificial intelligence (AI) in the Middle East, a report from state news media said.
The 2025 State of AI in the Middle East Report also shines a spotlight on the challenges organizations face when investing in AI technology and ensuring they fully understand and utilize its potential.
The Perfect Storm: A perspective on unlocking AI’s value in Middle East draws on insights from more than 150 business and technology leaders across the UAE, the KSA, and Qatar, supplemented by interviews with key industry figures, the report said.
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The report explores the dynamics of AI adoption while identifying the challenges that hinder progress and the strategies organizations are using to manage risks and maximize value.
While organizations across the Middle East are rapidly increasing AI investments, many lack the foundational elements needed to realize its full value.
The latest research shows more than 80 percent of organizations feel pressured to adopt AI, yet almost half say they lack the talent and technology capabilities for successful scaling.
Despite these challenges, 69 percent of organizations plan to increase investment in AI technologies in the coming year, according to the report.
Mutasem Dajani, Deloitte Middle East CEO, said: “The GCC region is making substantial investments in AI, driven by strong government commitments. With increasing funding for AI infrastructure and a growing emphasis on developing local talent, the region is positioning itself as a global leader in AI innovation. This transformation is accelerating the shift toward knowledge-based economies, compelling organisations to fundamentally rethink their operations.”
Respondents in the survey claimed high levels of preparedness for technology infrastructure (71 percent), talent (68 percent) and strategy (69 percent). Risk and governance were slightly lower in terms of feeling highly or very highly prepared (63 percent). However, when considering only Generative AI (GenAI), global leaders felt much less prepared to address risk and governance, with 41 percent of leaders reporting they were only slightly or not at all prepared.
Professor Sami Haddadin, MBZUAI’s vice president for research, said: “This research highlights an increased focus on developing local AI specialists and practitioners who understand the potential of AI and how to execute implementation, while addressing concerns such as privacy and ethics. The report reveals a critical disconnect – a strong appetite among Middle Eastern organisations to deploy AI outpacing their readiness in terms of talent, strategic planning, and infrastructure.”
In terms of the perceived key benefits of GenAI, 91 percent of respondents expect increased productivity to be the most transformational benefit.
The report found that one in three organizations in the Middle East are spending more than 60 percent of their AI budget on GenAI, compared to data showing that 72 percent of global organizations are spending less than 40 percent.
