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UAE among top emerging economies in AI readiness: report

The report showed that Qatar, Oman, Bahrain and Kuwait are progressing in AI readiness through national strategies, modern infrastructure investments and upskilling initiatives

Gulf Business
Gulf Business

23 April, 2025

UAE among top emerging economies in AI readiness: report
Image: Getty Images/ For illustrative purposes

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The UAE ranks among the top emerging global economies in artificial intelligence (AI) readiness, according to a new report from Boston Consulting Group (BCG), presented during the Dubai AI Assembly at Dubai AI Week.

The study, titled GCC AI Pulse: Mapping the Region’s Readiness for an AI-Driven Future, is based on BCG’s 2024 AI Maturity Matrix, which categorises countries into four archetypes: AI Emergents, Practitioners, Contenders, and Pioneers.

The UAE has been placed in the “AI Contender” category, alongside 31 other economies, including Saudi Arabia.

Other Gulf nations — Qatar, Kuwait, Oman and Bahrain — are classified as AI Practitioners.

While no GCC country has yet reached the “AI Pioneer” category, which includes the US, UK and China, the report highlights the region’s potential for advancement.

“The UAE is poised to be a regional leader among global AI Pioneers by capitalising on its established digital infrastructure and formulating strategic initiatives that support AI integration into its economic visions,” said Dr Akram Awad, MD and partner at BCG.

Strategic vision, infrastructure drive UAE’s AI push

The UAE has emerged as a first mover in AI governance, having launched a National AI Strategy in 2017 and appointing the world’s first Minister of AI.

According to BCG, the country is already mirroring benchmarks set by leading AI nations through robust policy and infrastructure.

The UAE currently hosts 35 data centres and has the highest public cloud expenditure per employee in the GCC at $228.

It also boasts nearly 7,000 AI specialists and around 700 AI-related academic publications.

However, BCG says expanding the domestic talent pool and fostering globally recognised innovation remains critical to achieving AI Pioneer status.

Investment momentum and global ambitions

The report also points to elevated private-sector investment in the UAE, which already exceeds the average within its AI Contender peer group. It highlights the $100bn MGX fund as a reflection of the country’s global AI ambitions.

“Advancing private sector engagement and investment, improving R&D outcomes to global innovation levels, and expanding the homegrown AI talent pool will further solidify the UAE’s position as a global AI leader,” said Rami Mourtada, partner and director at BCG.

GCC region accelerates toward AI maturity

Saudi Arabia, another AI Contender, has made strides through regulatory leadership and the work of the Saudi Data and AI Authority (SDAIA), with a target to become one of the top 15 AI nations by 2030.

Qatar, Oman, Bahrain and Kuwait are also progressing through national strategies, modern infrastructure investments and upskilling initiatives.

“The UAE stands out as a beacon of advanced leadership and execution in AI—but what makes this moment remarkable is the broader wave of transformation across the GCC,” said Dr Lars Littig, MD and partner at BCG.

Pathways to progress

BCG’s ASPIRE framework, central to the report, offers a strategic blueprint for governments to build and scale AI capabilities.

It stresses the need for realigning governance structures with evolving ethics frameworks, expanding research and academia-industry collaboration, and ensuring global competitiveness through international talent acquisition and policy alignment.

Read: The AI imperative: 5 steps to transforming public sector services

How Alexa is powering the Gulf’s smart home boom

Smart home adoption in Saudi Arabia and UAE, key factors driving this rapid adoption of technology in the regions

Gulf Business
Gulf Business

23 April, 2025

How Alexa is powering the Gulf’s smart home boom
Amazon's regional general manager and global product lead for Alexa, Dr Raf Fatani.

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A 28 per cent rise in Alexa users last year reflects not just growing smart home adoption, but the impact of hyper-localisation — from Khaleeji Arabic to prayer reminders.

Amazon sees this as just the beginning of a deeply regional transformation.

And in this Q&A, Amazon’s regional general manager and global product lead for Alexa, Dr Raf Fatani, tells us more about the trends driving this adoption.

We’re seeing an increase in smart home adoption in Saudi Arabia and UAE. What are the key factors driving this rapid adoption of smart home technology in the region?

When we launched Alexa with local dialectal Khaleeji Arabic support, we were eagerly waiting to hear back from our customers about the experience we offered in Saudi Arabia and the Emirates. And to be honest what we are witnessing has exceeded our expectations. Last year alone, we saw a 28 per cent growth in monthly active Alexa customers across Saudi Arabia and UAE. It was clear that customers are using Alexa to make their lives easier, and found a meaningful use for the technology.

Knowing that homes in Saudi Arabia and the UAE use our technology that is woven in their family life is nothing short of humbling. Grandparents who might have been hesitant about new devices are now not only using our Echo devices as digital photo frames of family photos, but also asking Alexa for prayer times, making video calls with grandchildren, setting reminders to take vitamins and other supplements. Parents and caretakers are using voice technology that understands their dialect and cultural context to help in their everyday lives by asking Alexa to tell local children’s stories, play fawazeer, watch videos, or even play white noise to help them sleep.

This transformation isn’t happening in isolation. Both countries have created environments where digital innovation can thrive, with clear national visions for technological advancement that touches every part of society. Within this supportive environment, families are discovering how AI voice technology can enhance daily routines rather than distract them from what’s more meaningful or important to them.

What’s particularly interesting is how quickly people expand their smart home experience once they start. We’ve seen a 35 per cent year-over-year increase in Alexa-connected devices, which tells that once families experience the convenience of controlling lights, air conditioning systems, or seeing who’s at the door with smart doorbells, using just their voice, they find more ways to integrate this technology into their daily lives.

The most important factor has been our focus on deep hyper-localisation. By ensuring Alexa understands Arabic dialects including all Khaleeji dialects, and responds appropriately to culturally specific requests, we’ve built technology that feels like it belongs to the local community rather than something imported from elsewhere. This locally built cultural adaptation has made all the difference in how readily families have welcomed Alexa into their most personal spaces.

What are the most popular applications of this technology that you’re observing in Saudi Arabia and UAE?

What fascinates me most about how people in Saudi Arabia and the UAE use Alexa is the beautiful weaving of tradition and innovation in a meaningful way.

Let me share a story that really brings this to life. Mohammad Saeed, a visually impaired Saudi who now lives independently in Riyadh despite daily challenges of being blind transformed his entire home using Alexa. When guests arrive at his special coffee corner, Alexa welcomes them, offers different coffee options, and even prepares their selection using a smart coffee machine. This traditional gesture of Arabic hospitality now happens seamlessly through voice technology, allowing Mohammad to be an incredible host despite his visual impairment. This story reflects a broader pattern of inclusivity and impactful use of our technology we’re seeing across the region – something to be incredibly proud of.

Another interesting observations is the use of Alexa to help customer with their daily spiritual practices. When we build at amazon, we tend to put the customer at the heart of what we build. Knowing the importance of faith to the region, we built Alexa here with spirituality offerings as an Alexa fist. In 2024 alone, we had over 5.1 million prayer reminders and 1.69 million “Athkar” actions requested through Alexa between Saudi Arabia and UAE – astonishing! Rather than technology distracting, we’re seeing it enhance these deeply meaningful routines.

And it gets interesting—we all know the passion for football for instance runs deep in both countries, and we see that reflected in the over 5 million football-related questions to Alexa received last year, with fans checking scores, asking about upcoming matches, and debating player statistics or even facts about players. These conversations with Alexa allows us to understand our customer interests better, and this in turn helps Alexa serve them better.

I love how customers quickly move beyond novelty to make Alexa an essential part of their routines. Don’t take that from me, the data tells us so. Our customers average 180 interactions monthly, showing they’re not just experimenting with the technology—they’re relying on it. The 35 per cent growth in connected devices tells us that once families experience the convenience of smart homes, they find ways to extend that throughout their homes—creating environments that honour traditional values while embracing modern conveniences.

Engagement with voice assistants is clearly high. How do you see this level of interaction evolving in the coming years?

When I think about the future of voice technology in our region, I’m reminded by something we always say at Amazon, “it’s still Day 1” – which means maintaining a long-term focus, obsessing over customers, and bold innovation. In short, despite seeing a 28 per cent growth in monthly active users across Saudi Arabia and the UAE, we believe we’re just at the beginning of this journey.

Imagine a home that knows when you’re arriving tired from work and automatically adjusts the lighting, temperature, and perhaps even has your favourite relaxation playlist ready without you saying a word. Or consider how meaningful it would be for an elderly family member to have their medication routines gently managed through reminders that feel like a caring presence, not intrusive technology.

We’re already seeing this evolution in how people use features like Routines. Instead of manually tracking prayer times, for instance, many families now rely on Alexa to naturally integrate these spiritual moments into their day. The technology fades into the background while supporting what matters most.

Our approach is to work backward from the most meaningful human needs. We ask: what would make daily life in a local home more harmonious? How can we honour the traditions that matter while removing mundane everyday tasks?

The future we envision isn’t about more screen time or more commands — it’s actually about less direct interaction with devices. So, as our ambient intelligence evolves, technology will become more anticipatory and responsive to context, understanding the subtle rhythms of family life without requiring constant guidance.

Every week, we learn more about how our customers want to interact with technology. These insights guide our innovation as we continue to develop experiences that feel like they were designed specifically for our homes here locally.

What are the key challenges and opportunities you see for the smart home market in Saudi Arabia and UAE in the next five years?

Over the next five years, I see both interesting challenges and tremendous opportunities for smart homes in our region.

Let me start with a challenge we hear about frequently. Many customers tell us stories of purchasing different smart devices that won’t talk to each other – creating frustration instead of convenience. With the 35 per cent growth we’ve seen in Alexa-connected devices, it’s clear that customers don’t want technology islands; they want a unified experience where everything works together seamlessly, regardless of brand.

On the opportunity side, I’m genuinely excited about how we can further develop features that reflect the cultural context of our homes. The enthusiastic response to our spirituality or how customers are using different features – with over 5 million requests each – shows how powerfully technology resonates when it’s aligned with local interests and values.

The rollout of ultrafast connectivity across the region creates another significant opportunity. This enhanced connectivity will allow smart home devices to communicate more reliably and respond more quickly, making the entire experience more seamless. The large investments from AWS in Data-Centre Regions in both countries in a critical component of that.

Perhaps most encouraging is the 28 per cent growth we’ve seen in monthly active users. This tells us people are finding real value in the technology, but we know we’re just beginning to deliver on the potential. Our approach is built on long-term thinking – we’re not looking for quick wins but rather building relationships with customers that will last for decades. It’s really still Day One.

By listening carefully to feedback from local families, we’ll continue evolving our products to serve their unique needs, creating experiences that feel less like using technology and more like having helpful magic in your home.

Read: The AI imperative: 5 steps to transforming public sector services

IMF cuts Saudi 2025 growth forecast, flags slower oil rebound

Saudi Arabia, the world’s top oil exporter and a G20 economy, had previously been expected to see a sharp growth rebound in 2025 on the back of higher crude output

Reuters
Reuters

23 April, 2025

IMF cuts Saudi 2025 growth forecast, flags slower oil rebound

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The International Monetary Fund on Tuesday lowered its 2025 GDP growth forecast for Saudi Arabia, while flagging headwinds for the broader region, including a more gradual resumption of oil production.

Oil-dependent governments are coming under pressure from the lowest crude prices since the COVID-19 pandemic, with officials preparing policy responses for a drop in revenue such as issuing more debt and reducing spending.

In its World Economic Outlook, the IMF cut the forecast for Saudi Arabia‘s GDP growth in 2025 to 3 per cent versus a January estimate of a 3.3 per cent increase. IMF also reduced the projection for growth in 2026 by 0.4 percentage point to 3.7 per cent.

Meanwhile, the growth projection for the broader Middle East and Central Asia region was lowered to 3 per cent this year versus a 3.6 per cent estimate earlier.

“Compared with that in January, the projection is revised downward, reflecting a more gradual resumption of oil production, persistent spillovers from conflicts, and slower-than-expected progress on structural reforms,” the report said.

Saudi Arabia, the world’s top oil exporter and a G20 economy, had been expected to see a sharp growth rebound in 2025 on the back of higher crude output, with an October Reuters poll forecasting expansion of 4.4 per cent.

But market volatility, weaker prices, and mounting global risks now threaten to weigh on the recovery, even as the kingdom pushes to diversify its economy beyond oil.

Still, Gulf oil exporters are seen as relatively well insulated from oil market volatility thanks to higher reserves, lower debt and ongoing diversification efforts, economists say.

S&P raised Saudi Arabia’s long-term sovereign credit rating to ‘A+’ in March, citing stronger institutions and solid non-oil growth under Vision 2030, while cautioning that weaker oil revenue could widen fiscal deficits and lead to delays or cutbacks in major infrastructure projects.

Dubai’s du announces Dhs2bn hyperscale data centre deal with Microsoft

The hyperscale data centre will have Microsoft as the main tenant and its capacity will be delivered in tranches

Reuters
Reuters

23 April, 2025

Dubai’s du announces Dhs2bn hyperscale data centre deal with Microsoft
Image credit: Getty Images

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The Emirates Integrated Telecommunications Company (du) on Tuesday announced a Dhs2bn ($544.54m) hyperscale data centre deal with Microsoft.

The hyperscale data centre, to be built and operated at a cost of around Dhs2bn, will have Microsoft as the main tenant and its capacity will be delivered in tranches, du said in a statement.

Hyperscale centers are large facilities that are mainly used to provide data storage and cloud computing services to businesses at scale.

The deal, made during Dubai AI Week, “represents a pivotal leap in our strategic goal to revolutionise the digital ecosystem of the UAE“, Fahad Al Hassawi, CEO of du, said.

Currently, du operates five data centres across the UAE, which has been heavily investing to become a global hub for AI outside of the US.

ADNOC launches app to turbocharge UAE’s local manufacturing drive

ADNOC’s app is part of a broader push by Abu Dhabi to boost industrial GDP, develop homegrown capabilities, and attract strategic investments

Gulf Business
Gulf Business

22 April, 2025

ADNOC launches app to turbocharge UAE’s local manufacturing drive
Image: Supplied

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Abu Dhabi National Oil Company (ADNOC) has launched ‘Make it with ADNOC’, a mobile app designed to accelerate local manufacturing and support the UAE’s industrial expansion under the national ‘Make it in the Emirates’ initiative.

The first-of-its-kind tool gives manufacturers, SMEs, and entrepreneurs real-time visibility into ADNOC’s procurement pipeline — offering what the company calls a “clear pathway” to long-term manufacturing opportunities within its supply chain.

Unveiled on Tuesday at ADNOC’s headquarters, the launch event brought together senior officials from the Ministry of Industry and Advanced Technology (MoIAT), Abu Dhabi Department of Economic Development, ADIO, and major private sector players.

How ADNOC’s new app helps

The app aims to de-risk investment decisions and streamline supplier onboarding by making ADNOC’s purchasing needs transparent and accessible. It is positioned as a core enabler of ADNOC’s In-Country Value (ICV) programme — which has already redirected Dhs242bn ($65.9bn) into the local economy and helped employ 17,000 Emiratis in the private sector since 2018. ADNOC plans to inject an additional Dhs200bn ($54.5bn) over the next five years.

ADNOC executive director Yaser Saeed Almazrouei said the app will “empower businesses to engage directly with ADNOC and unlock mutual value”.

Officials praised the initiative as a strategic leap forward for the UAE’s Operation 300bn and Falcon Economy vision — two key frameworks aimed at driving industrial self-sufficiency, innovation, and global competitiveness.

MoIAT Undersecretary Omar Al Suwaidi said the app deepens the ministry’s strategic partnership with ADNOC and gives manufacturers the data needed to make better-informed investment decisions. “This platform will help identify locally manufacturable products and strengthen national supply chains,” he noted.

What’s next

The app’s launch comes ahead of the Make it in the Emirates forum, set for May 19–22 at ADNEC in Abu Dhabi.

More than 500 companies are expected to participate, with thousands of new offtake agreements to be announced across 12 strategic sectors.

ADNOC’s app is part of a broader push by Abu Dhabi to boost industrial GDP, develop homegrown capabilities, and attract strategic investments.

Read: AIQ secures $340m contract to deploy agentic AI across ADNOC ops

Jetour UAE achieves 230% YoY growth with Elite Group Holding

Jetour is set to shape the future of the UAE by its focus on high-performance and versatility

Nilufer Najeeb
Nilufer Najeeb

22 April, 2025

Jetour UAE achieves 230% YoY growth with Elite Group Holding
Image Credits: Supplied

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Jetour UAE has experienced great success, achieving a 230 per cent year-on-year growth from 2023 to 2024, with its exclusive partner, Elite Group Holding. This expansion has allowed Jetour to strengthen its market share, expand its customer base, and become a leading SUV brand in the UAE since its successful market entry.

Elite Group Holding drives innovation across automotive, e-commerce, investments, and real estate and contracting.

With exclusive partnerships including Jetour, Soueast, and Zenvo, their automotive arm features The Elite Cars showroom and ART Elite Car Rental.

The group also excels in contracting (ZRT) and e-commerce, with plans for over 20 new UAE facilities to expand their significant regional impact.

Jetour growth fuelled by these factors

Jetour’s strong growth is fuelled by its focus on high-performance, adventure-ready vehicles designed for the UAE market.

The brand is strategically increasing its physical presence, emphasing innovation, customer satisfaction, and accessibility, with the new Deira showroom joining Al Quoz and Abu Dhabi, and more planned across the UAE.

Furthering its success, Jetour is expanding its T-Series lineup with the T2 IDM, a plug-in hybrid T2 offering efficient off-road performance and optimal fuel balance. The recently launched Jetour T1, previewed in late 2024, is already impacting UAE roads, enriching the brand’s SUV offerings to cater to a diverse customer base.

Commenting on this milestone, Jesico Gonsalves, GM of Jetour UAE, said: “The remarkable reception of Jetour in the UAE underscores the brand’s ability to meet the expectations of modern drivers. Our growth reflects the trust our customers place in us and the strength of our strategic partnership with Elite Group Holding. With continuous investment in product innovation and customer engagement, we remain dedicated to redefining the SUV landscape in the UAE.”

As Jetour began its expansion in the UAE, the brand’s core strategy revolves around introducing advanced vehicles that balance powerful performance, the strategic alliance with Elite Group Holding provides the expertise support necessary for Jetour to further establish its dominance in the SUV segment.

A key differentiator in this pursuit is the exceptional 10-year/1 million KM warranty, designed to build unparalleled customer trust and confidence in the Jetour brand across the UAE.

Read: From Detroit to Dubai: Key trends reshaping the global automotive landscape

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