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69% of Middle Eastern organizations plan increased AI investments, reveals report
One in three Middle East firms are allocating over 60% of their AI budget—well above the global average.
A new report by Deloitte and the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) reveals that 69% of organizations plan to increase AI investments in the coming year, signaling strong confidence in its transformative potential. Titled “The Perfect Storm: A Perspective on Unlocking AI’s Value in the Middle East,” the 2025 State of AI in the Middle East Report highlights the vast opportunities artificial intelligence (AI) presents in the Middle East while also highlighting the challenges organizations face in fully leveraging its potential.
Based on insights from over 150 business and technology leaders across the UAE, Saudi Arabia, and Qatar, the report highlights a surge in AI investment in the region. This growth is driven by strong government support and a shift toward knowledge-based economies. However, while more than 80% of businesses feel compelled to adopt AI, nearly half acknowledge facing challenges related to talent and technology gaps.
“With increasing funding for AI infrastructure and an 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 organizations to fundamentally rethink their operations,” said Mutasem Dajani, CEO of Deloitte Middle East.
Survey respondents reported strong preparedness in technology infrastructure (71%), talent (68%), and strategy (69%). However, readiness for risk and governance was somewhat lower at 63%. When it comes to Generative AI (GenAI), global leaders expressed heightened concern, with 41% acknowledging they were only slightly or not at all prepared to manage its risks.
Professor Sami Haddadin, Vice President for Research at MBZUAI, emphasized the importance of developing local AI expertise. He highlighted that the research highlights the need for skilled AI specialists who understand the potential and ethical considerations of AI implementation.
“The report reveals a critical disconnect – a strong appetite among Middle Eastern organizations to deploy AI outpacing their readiness regarding talent, strategic planning, and infrastructure,” Haddadin added.
The report also highlighted the growing prominence of GenAI, with 91% of respondents anticipating significant productivity gains. Middle Eastern organizations are heavily investing in GenAI, with one in three dedicating over 60% of their AI budget to it—well above the global average.
However, 41% view AI as a threat to their business models. A major challenge is selecting the right AI technologies, with 34% of respondents struggling to align solutions with strategic goals and identify viable use cases, particularly for GenAI.
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