Businesses in the Middle East pride themselves on innovation. They develop new technologies and offer new ways of doing things that upend the market’s expectations. They are innovating, growing, and leapfrogging, accelerated by adopting AI and digital transformation. 

Companies leverage advanced technologies to enhance their products and services, contributing to growth across sectors.  

In addition to increased investment in R&D, government support in removing the structural obstacles that inhibit innovation helps drive the culture, transforming the region into a key player in technological progress.

We spoke with the past winners of Fast Company Middle East’s Innovative Companies (MIC) to learn what the future of innovation looks like across sectors. Most business leaders feel an urgent need to innovate more. 

With the advent of advanced technologies, businesses can create new opportunities, streamline processes, and enhance the customer experience, ultimately leading to growth for their businesses. 

Dania Ismail, Director of Strategy and Business Development at Telfaz11, says that innovation in the media industry is being defined by technology such as AI, VR, AR, and blockchain. There are new tools for users on digital and streaming platforms, new ways for audiences to interact with content, and new ways for content creators to produce content. 

“The opportunities that these technologies present are very important to us, but we are yet to see full adoption across operational and business functions,” she adds.

Ali Al Ebrahim, founder and CEO of COFE App, says innovative approaches and solutions in 2024 are driven by sustainability, advanced technologies, digital transformation, regional collaboration, and supportive government policies.

In 2024, as the impact of the climate crisis on our planet and our lives becomes ever more evident, those working in technology and innovation know that sustainability is more than a nice-to-have – it’s an urgent requirement.

Khaled Al Huraimel, CEO and Vice Chairman of Beeah Group, says that innovation is not confined to isolated advancements but has become fully integrated into its approach to solving complex challenges. “The convergence of digitalization and sustainability has paved the way for groundbreaking solutions that address environmental issues while enhancing quality of life.”

While tech innovation has been happening at an unprecedented rate and scale, Saad Toma, General Manager of IBM Middle East and Africa, has also seen a significant focus on creating trustworthy and enterprise-ready AI solutions, such as IBM’s watsonx platform and the recent Arabic large language models (LLMs) on watsonx.

However, Charlotte Borghesi, Founder of Kidzink, says the business community overemphasizes the role of technology in innovation. “While innovation can and does incorporate technology, it’s often about thinking about problems or issues differently, from new perspectives with no solution too simple to consider.”

“It’s a market that continues to grow and challenge us in ways that lead to new services, products, and technologies,” she adds.

WHAT WILL GUIDE INNOVATION 

According to industry leaders, innovation in 2024 shows immense promise, with Generative AI, data analytics, and automation expected to guide this growth among industries. 

According to IBM’s CEO’s guide to generative AI, this technology promises to upgrade ecosystem innovation by transforming workflow. Innovation outperformers see annual revenue growth 74% higher than their peers. Moreover, many executives believe generative AI will significantly improve ideation, discovery, collaboration with partners for innovation, and innovation execution.

Organizations are learning more about AI’s potential and pitfalls, and as regulatory bodies respond, they will become more comfortable using it as a tool with limitations.

Toma shares this belief, explaining that IBM’s continuous development and enhancement of the watsonx platform exemplifies the trend towards creating more powerful and adaptable AI solutions that enable businesses to tackle complex tasks such as application modernization, code generation, and bug fixing.

“Looking forward, Gen AI isn’t just another tool in the innovation toolbox; it’s the entire workshop, capable of igniting ecosystem innovation by tapping into the collective brainpower of all organizations quickly and easily,” he adds.

According to Borghesi, innovation will become more intertwined with good purpose. “The global community is at an inflection point, with many individuals and businesses reassessing their values and how they operate and show up in the world.”

Looking ahead, Huraimel says the environmental impact of innovation will improve the quality of life, Al Ebrahim expects more innovative companies to focus increasingly on cloud-based solutions, and Ismail believes that the infrastructure in Saudi Arabia’s media space will see further development in boosting output and attracting international players to the local market.

MORE NEEDS TO BE DONE

Countries in the region are investing heavily in digital transformation, recognizing their potential to drive economic growth and enhance public services.

To foster innovation further, Al Ebrahim says it is important to focus on the rising young generation. “Promoting a culture of innovation through education and training programs, from schools to universities, can cultivate a generation of creative thinkers and problem solvers. Investing in STEM education and upskilling the workforce in emerging technologies will ensure a continuous supply of skilled professionals to drive innovation.” 

Toma suggests continuous investment in R&D, enhancing AI skills among the workforce, and fostering public-private partnerships are crucial. He adds that enhancing intellectual property rights and legal frameworks will protect innovations and encourage more inventors and entrepreneurs to bring their ideas to the market.

At the same time, creating more accessible funding opportunities for startups and small businesses, including grants, venture capital, and crowdfunding platforms, can stimulate innovation in the coming years. 

“There is always room for further advancement, which is why we are continuing to invest in R&D to nurture this culture of innovation,” says Al Huraimel.