AI in Middle East banking could add 13.6% to GDP by 2030, reveals report

By Gloria Methri

Banks across the Middle East are fast-tracking their artificial intelligence (AI) adoption, setting the stage for a transformative impact on the region’s financial services landscape and broader economy. According to Finastra’s Financial Services State of the Nation 2024 report, AI integration in the sector is not just accelerating innovation — it could contribute a staggering 13.6% to regional GDP by 2030.

The report underscores the United Arab Emirates (UAE) and Saudi Arabia as frontrunners in embracing AI in banking. With 71% of financial institutions in the UAE having deployed or enhanced AI capabilities over the past year, the country now ranks among the world’s top adopters. This growth is being fuelled by robust government initiatives, supportive regulation, and substantial investments from both the public and private sectors.

Saudi Arabia mirrors this momentum, focusing not only on AI adoption but also on modernising banking operations and forging strategic technology partnerships. Interestingly, institutions in both nations are prioritising the use of generative AI (Gen AI) for core operational processes rather than marketing applications. AI is increasingly being leveraged for Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, enhancing risk assessment, IT operations, and overall decision-making.

“The Middle East’s forward-thinking regulators, solid digital infrastructure, and receptive customer base create an ideal environment for banks to leverage AI,” said Adam Lieberman, Chief AI Officer at Finastra. “Banks utilising cloud-native platforms and unified data environments will not only maximise AI’s impact on productivity but also unlock new potential for innovation, risk control, and regional expansion.”

AI Redefining Customer Experience in Banking

The Finastra report further reveals that AI-driven personalisation is rapidly becoming the norm, not the exception, in regional banking. UAE banks, in particular, are at the forefront of deploying smart, context-aware AI chatbots capable of delivering 24/7 customer support, transforming how consumers engage with their financial institutions.

High levels of enthusiasm across the region underpin this digital evolution. A remarkable 93% of Saudi financial institutions and 90% in the UAE expressed strong interest in adopting AI, ranking them among the most AI-optimistic markets globally.

Global forecasts reinforce this optimism. PwC projects AI will inject $320 billion into the Middle East economy by 2030. McKinsey estimates AI could add over $1 trillion annually to the global banking industry through enhanced efficiencies, cost reductions, and innovation.

As more advanced AI capabilities emerge, including agentic AI systems that act autonomously to complete tasks, Middle Eastern banks are poised to harness even greater value. These next-generation technologies are expected to streamline operations further, elevate user experiences, and create new service models.

Finastra reaffirms its commitment to enabling this transformation by equipping Middle Eastern banks with advanced, interoperable financial solutions. Through strategic collaborations and technology partnerships, the company aims to help institutions fully unlock the power of AI and shape the future of banking in the region.