Artificial intelligence is projected to make a significant impact in the Middle East and North Africa region's technology ecosystem, as rapid advancements in the sector drive adoption across industries, a study has found.
The technology, which has developed at a blistering pace, particularly after OpenAI's ChatGPT broke into the mainstream, is expected to gain further momentum as governments focus on leveraging its benefits and encourage people to adopt it, start-up data platform Magnitt said in a new report.
"The most significant use of artificial intelligence has been seen in the healthcare industry in areas such as diagnosis, telemedicine and drug discovery," start-up data platform Magnitt said in the report.
"AI is also blurring the lines between health care, enterprise and FinTech by providing insurance for healthcare professionals and offering revenue cycle management tools for healthcare organisations."
Governments in the Mena region have recognised the potential of emerging technologies and are taking steps to implement these into their economies and societies, while at the same time trying to attract investments from global companies.
Notable technologies that have been capturing the attention of organisations and individuals are blockchain, cryptocurrencies and the Internet of Things.
But by far the most popular is AI and machine learning, particularly augmented by the rise of generative AI, thanks to ChatGPT, which has kicked off a race with Google's Bard, drawn interest from Twitter chief executive Elon Musk and prompted Apple to work on improving its digital assistant Siri.
Investors poured in more than $4.2 billion through 215 deals into generative AI start-ups in 2021 and 2022 after interest surged in 2019, recent data from CB Insights showed.
The biggest Mena countries have already published their AI plans, led by the UAE, which was the first to release such a strategy and even appointed Omar Al Olama as Minister of State for Digital Economy, AI and Remote Working System, to focus on the innovation that is part of a wider digital transformation road map to prepare the Emirates for the economy of the future.
The UAE is also projected to reap the biggest impact from AI, pegged at close to 14 per cent of its GDP by 2030, Magnitt said.
Saudi Arabia, the Arab world's biggest economy, has also been pouring significant efforts into its digital transformation agenda, which is deeply embedded in its Vision 2030 strategy, as it looks to diversify its economy away from oil.
Globally, the adoption of AI-powered automation and remote work significantly rose during the Covid-19 pandemic, which continues to the present, sparking a change in consumer habits.
For instance, the e-commerce and retail sectors gained momentum because the closure of physical stores provided a new avenue for improving customer experience by collecting pools of customer data, which resulted in the sector being one of the fastest to opt for AI processes, Magnitt said.
Magnitt, however, acknowledged that while AI has the potential to bring significant benefits, it is not without its disadvantages.
The most notable downside of the technology is that it can replace humans in jobs and services, particularly those that are mundane and repetitive, especially if it means saving costs for companies.
Roughly 18 per cent of work globally could be automated by AI, with a bigger impact on developed rather than emerging markets, Goldman Sachs said in a March report.
AI is also blurring the lines between health care, enterprise and FinTech by providing insurance for healthcare professionals and offering revenue cycle management tools for healthcare organisations
Magnitt
In the Middle East, about 45 per cent could be potentially automated between now and 2030, Magnitt said, citing a study from McKinsey & Co.
Those who embrace AI are expected to benefit, and those who are behind the curve need to upskill or their services "might get compared with AI-enabled intelligent machines", Harish Dunakhe, senior research director at the International Data Corporation, told The National.
Some companies are also feeling the pinch. Chegg, a US education technology provider, saw its shares plummet 48 per cent after it said the emergence of ChatGPT dented its growth in the first quarter.
"This also opens a whole new avenue of re-skilling and the chance for companies to attain high productivity and growth by equipping the workforce with the right skills as AI and automated processes are adopted," Magnitt said.
"That is not to say the cultural implications of adopting AI can be ignored: there is a certain level of scepticism around when it comes to AI integration, especially in company processes of decision-making and problem-solving."
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
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Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Stormy seas
Weather warnings show that Storm Eunice is soon to make landfall. The videographer and I are scrambling to return to the other side of the Channel before it does. As we race to the port of Calais, I see miles of wire fencing topped with barbed wire all around it, a silent ‘Keep Out’ sign for those who, unlike us, aren’t lucky enough to have the right to move freely and safely across borders.
We set sail on a giant ferry whose length dwarfs the dinghies migrants use by nearly a 100 times. Despite the windy rain lashing at the portholes, we arrive safely in Dover; grateful but acutely aware of the miserable conditions the people we’ve left behind are in and of the privilege of choice.
Stats at a glance:
Cost: 1.05 billion pounds (Dh 4.8 billion)
Number in service: 6
Complement 191 (space for up to 285)
Top speed: over 32 knots
Range: Over 7,000 nautical miles
Length 152.4 m
Displacement: 8,700 tonnes
Beam: 21.2 m
Draught: 7.4 m
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
