AI contribution to the fintech, energy and tourism sectors will exceed $170 billion by 2034. Individual countries within the MENA region have already started to derive the benefits.
The main AI application areas include data analytics, decision-making processes, fraud detection and customer service.
With the UAE, Saudi Arabia, Egypt, Oman and Kuwait at the helm, governments are to tackle skill gaps, enhance cybersecurity and cultivate a thriving AI ecosystem.
MENA countries’ promoting investment in AI generates positive externalities for various industries. For more on this topic, see our article on AI Transforming Retail, Public Sector and Transportation. To provide an even more comprehensive view, transformative opportunities in such vital areas as fintech, energy and tourism should be taken into account as well.
Fintech
The global AI in fintech market is expected to expand from $13.5 billion in 2024 to $58.7 billion by 2034, reflecting a robust CAGR of 15.9%. The MENA fintech market size is estimated to increase from $1.5 billion in 2024 to $2.4 billion by 2029, growing at a CAGR of 9.7% during the forecast period.
With AI utilized for algorithmic trading, fraud detection, customer service and credit scoring, financial services, along with professional and administrative ones, will account for 13.6% of AI contribution to the Middle East GDP by 2030.
Aiming to enhance decision-making, streamline processes and improve client experience, a number of initiatives is launched:
KSA has also succeeded in building its online platform Fintech Saudi with 216 members, 68 partners and more than 100 beneficiaries supporting the initiatives proposed to transform Saudi Arabia into an innovative fintech hub by implementing the latest technologies.
The Digital Academy project by FinTech Egypt, a unified platform to foster and connect startups, financial institutions, service providers and investors, equips participants with the knowledge and skills to successfully leverage AI.
The economies of the MENA countries, which were built on energy sectors dominated by the extraction of oil and gas, tend to prioritize renewable sources in their AI strategies. By 2030, the region is expected to attract over $1 trillion in renewable energy investments, paving the way for new industries, job creation and increased collaboration.
Achievements in non-renewable energy are outstanding as well.
In November, 2024 Abu Dhabi’s National Oil Co. (ADNOC) and AIQ in collaboration with Microsoft Corp. and G42 agreed on a deal to use agentic AI with a view to identify operational improvements in the energy industry.
The UAE and KSA industriesremain at the forefront, with the travel & tourism market size surpassing $61.3 and $53.2 billion respectively. Their proposals address the most pressing needs such as to personalize travel recommendations, optimize itineraries, provide client support and correlate customer preferences with the market supply.
In October, 2024 King Salman Energy Park (SPARK) launched a new AI-Driven Tourism Initiative withGoogle.Org serving to connect stakeholders within the ecosystem. Designed to equip 25 000 individuals across the MENA region with advanced digital tools and AI skills, this network-building will create a more collaborative and supportive environment for businesses.
In February, 2025 KSA presented «Sara», AI-powered tour guide for an immersive travel experience. By integrating technologies with culture it assists tourists with rich information and smart recommendations, further promoting the industry.
Deeper analysis reveals that each of the sectors described has its own weaknesses, therefore governments, eager to facilitate safe and responsible AI deployment, will necessarily have to overcome a number of constraints.
Taking action: problem and solution
AI technology is likely to revolutionize societies in the MENA region. However, there is work to be done, from cultivating the talent to establish and optimize AI infrastructure to developing robust regulatory frameworks to promote responsible technology use and development.
To avoid this, finance, public sector, energy and tourism, considered to be the most rapidly developing industries, are highly recommended to carry out educational reforms (the overhaul of the national curriculum or the internalization of education in the UAE), encouraging students to pursue science, technology, engineering and mathematics fields (STEM High school in Egypt)and fostering them to continuously undergo requalification (Training Programs in Kuwait). Another promising area is public-private partnerships (PPP in Saudi Arabia).
2) Data protection
End-user spending on security and risk management (SRM) in the MENA region was estimated at $3.3 billion in 2024, marking a 12.1% increase from the previous year. Due to the alarming frequency of cyberattacks, data protection laws by the GCC were implemented, hence compelling SRM leaders to boost their spending on data privacy and cloud cybersecurity.
Harnessing AI is a complex, lengthy and costly process, entailing significant private sector investment alongside increased government spending. Meanwhile, the economic benefits that technologies bring to public services may seem intangible while generating benefits in the long run.
On top of that, it is of crucial importance that the MENA countries keep the spotlight on exploring and offering end-to-end governance solutions to build strong frameworks and keep ethics at the centre of everything. Only such a comprehensive, integrated policy approach will make it possible to create a robust AI infrastructure.
Shaping the future through joint efforts
Despite the shared priority of AI across the MENA governments, examples of cooperation in the field are scarce. The fragmented policy environment can be explained by varying levels of the technology development in the countries concerned.
Breaking the barrier requires a proactive approach, enabling discussions on how policy priorities should be aligned for the benefit of the region while maintaining individual national interests.
The MENA countries share language and cultural traits, and bringing policies closer together could help to create a large localised data pool and regional AI developments. But will geographical proximity and historical ground be enough to collaborate amid political tensions and growing economic competition?