As artificial intelligence (AI) reshapes industries and societies worldwide, the Gulf Cooperation Council (GCC) is emerging as an unexpected leader in this technological transformation. With governments and businesses in the region proactively embracing AI, a profound shift is underway – one that could propel the Middle East to the forefront of the global AI landscape.

At the heart of this revolution lies a striking cultural mindset: a fundamental curiosity and openness to exploring the boundless possibilities of AI.

Research by Oliver Wyman reveals that a remarkable 74 per cent of people in the UAE use AI at least once a week, far surpassing the global average of 55 per cent and second only to India (83 per cent). This statistic is not merely a number; it reflects a deep-rooted willingness to experiment, learn, and adapt – qualities essential for harnessing AI’s transformative potential.

AI in action

Governments in the region have recognized this unique opportunity and are taking decisive action. In Saudi Arabia, the establishment of the Saudi Data and AI Authority underscores the kingdom’s commitment to driving progress in data and AI. Meanwhile, the UAE recently approved the launch of an integrated government regulatory intelligence ecosystem.

The plan is to connect all laws with judicial rulings, executive procedures, and public services, tracking their impact on the population and economy using large-scale data, and suggesting updates to legislation. The system will also be linked to leading global research centers to follow the best international policies and legislative practices.

Mindful of the need to ensure a grassroots approach, the Department of Education in Abu Dhabi has launched a Generative AI and Prompt Engineering Bootcamp for teenagers, offered free of charge during the summer period. This initiative equips young minds with essential skills for an AI-driven future, laying the foundation for a generation of innovators and pioneers.

Private enterprises in the region are also at the forefront of AI integration. Telecoms provider E& has already integrated more than 400 AI use cases and 160 machine learning models across its operations, ensuring they translate into tangible efficiency and productivity gains. Signify, a global leader in lighting, is also paving the way in this regard. At a recent event in Riyadh, I witnessed its HR team outline a systematic AI training program schedule that also explores the philosophical underpinnings of why it should be used and how it can seamlessly integrate with human roles.

This emphasis on employee engagement and addressing concerns about job impacts is crucial for fostering a supportive environment where individuals feel empowered to experiment with AI without fear. It’s a recognition that true transformation requires more than just technology; it demands a cultural shift that embraces continuous learning and adaptation.

Another inspiring example comes from DAMAC Properties, which is using AI avatars to train and coach sales employees, simulating client interactions and providing feedback on specific development areas. This innovative approach demonstrates how AI can elevate the traditional role of the trainer, enabling much more personalized sessions that enhance overall performance.

These examples show how AI usage must extend beyond experimentation and towards a fundamental shift in mindset. This involves a willingness to redesign work processes and embrace human-machine collaboration.

Read: UAE among top emerging economies in AI readiness: report

The big question

Organisations and governments will typically pass through several maturity levels on this journey. This starts with individual benefits where productivity gains are minimal due to nascent tool usage. The next level involves wide-scale adoption, where practices are restructured to integrate AI more fully.

The final stage represents mature practices, where work processes are completely transformed around the benefits of AI. This will enable successful human-machine teaming that enhances overall efficiency and effectiveness across sectors. Achieving this level of maturity requires a sustained commitment to exploring the art of the possible and redesigning work.

This task is not without its challenges, and organisations must continually ask – and answer – this simple question: why are we doing this? Deploying AI tools across an entire operation requires investment, education and will fundamentally change operations. Without a clear ‘why?’ that can be a frustrating challenge. But the upside is considerable, with estimated productivity gains of 30 per cent or more. That is a powerful motivator.

As the region continues to lead the way in AI adoption, it’s essential to cultivate a culture of curiosity and innovation to leverage these gains. And it must do so while ensuring that technological advancements align with cultural values and societal needs.

By fostering environments that encourage continuous learning, and celebrating champions, we can accelerate AI adoption across the region. Harness this transformative power can drive economic growth and improve societal outcomes on a large scale, forming a powerful virtuous circle.

For individuals, the call to action is equally clear: embrace AI as a sparring partner and coach, and discover the myriad use cases that can elevate your personal and professional growth.

We must all act now because the AI revolution is upon us, and it will have profound consequences. However, this region can lead the charge, redefining what’s possible and inspiring a global paradigm shift in how we live, work, and thrive in an AI-driven world.

The writer is the lead at Regional Transformation Centre of Excellence Lead, IMEA, Mercer.

Dubai has launched the Dubai PropTech Hub in a move to fast-track on the directive of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Higher Committee for Future Technology and Digital Economy.

The initiative, launched during a committee meeting chaired by Sheikh Hamdan, is aimed at accelerating innovation and digital transformation within the real estate sector, aligning with the Dubai Economic Agenda D33 and the Dubai Real Estate Sector Strategy 2033.

Dubai’s proptech market was valued at approximately Dhs2.2bn in 2023. The new hub targets over Dhs1bn in investments by 2030, supporting more than 200 proptech companies and attracting 20 investment funds.

PropTech Hub will support startups, digital economy

Sheikh Hamdan described the launch as a strategic step toward strengthening one of Dubai’s key economic sectors. “Dubai has laid a strong foundation for a fully integrated digital economy,” he said, adding that the hub will empower talents and entrepreneurs to turn ideas into ventures, enhancing Dubai’s global competitiveness.

He highlighted the emirate’s flexible legal framework, advanced infrastructure, and strong startup ecosystem as enablers for the integration of real estate with emerging digital platforms.

The Dubai PropTech Hub will offer a comprehensive environment for startups, including advanced incubators, interactive workspaces, smart outdoor areas, and infrastructure to develop and test AI-powered models.

Anna Skigin, CEO and founder of short-term rental platform Frank Porter, welcomed the move, saying: “The short-term rental industry goes hand in hand with the strength of the real estate market. With this initiative, we will hopefully see more companies opening up that streamline real estate operations with technology. Tech that makes deal flow faster and easier encourages more investment. The short-term rental business is one of the options on how to make more money from a real estate investment, so it’s a win-win for us and other companies like ours—as this investment grows.

“We encourage this space and are very optimistic for the future of proptech. Our industry benefits further from the amount of new people entering Dubai and needing short-let accommodation.”

Read: Why Dubai’s proptech vision is great news for the real estate sector

Mubadala Investment Company has launched Mubadala Bio, a life sciences company aimed at strengthening the UAE’s pharmaceutical sector, improving health outcomes, and advancing economic diversification.

The company will focus on national drug security, increased access to essential therapeutics and medical devices, and the development of a knowledge-based economy.

The announcement was made ahead of Mubadala Bio’s participation in Make it in the Emirates 2025.

Mubadala Bio operations

Mubadala Bio’s operations include a network of 10 facilities across Asia, Africa, and Europe — six of which are located in the UAE — serving more than 100 countries.

Collectively, the facilities span 110,000 square meters and have an annual production capacity exceeding 2.5 billion tablets and capsules and 120 million IVs and injectables.

The portfolio covers more than 10,000 products.

The company’s therapeutic focus spans the full continuum of care, from prevention and diagnostics to treatment and complementary medicine, and aims to address global health challenges.

Mubadala Bio also intends to build long-term partnerships with global industry leaders and academic institutions to boost biopharma innovation and local manufacturing.

Strategic move for national resilience

“By launching Mubadala Bio, we are taking a transformative step towards strengthening national drug security and fostering innovation in life sciences,” said Dr. Bakheet Al Katheeri, CEO of Mubadala’s UAE Investments Platform. “This positions Mubadala at the forefront of the industry and enables us to drive long-term economic growth and a resilient ecosystem.”

Building for the future

Ismail Ali Abdulla, ED of UAE Clusters at Mubadala, added: “We are proud to take a significant step forward in supporting the UAE’s ambition to be a global leader in the life sciences industry. By focusing on local manufacturing and expanding distribution and logistics capabilities, we are building a more self-sustaining sector prepared for future challenges.”

Read: Abu Dhabi sovereign wealth fund Mubadala’s assets jump 9% in 2024

The startup ecosystem in the MENA region continues to evolve, with growing numbers of overseas arrivals intensifying competition in the market, particularly in the UAE and Saudi Arabia. It means founders must take their thinking to a new level in order to stand out.

The incentives are clear and obvious. In a report highlighting why 2025 will be an important year for MENA as an emerging venture market, MAGNiTT said it expects AI funding to double due to increased investor attention to innovative AI startups.

Dubai has solidified its position as a hub for international tech startups, attracting founders and investors from Europe, while Abu Dhabi emerged last year as the fastest-growing emerging ecosystem in the region, marking a 28% in ecosystem value.

Saudi Arabia’s growth as a startup magnet is driven by government initiatives like Vision 2030, which are fostering a supportive environment for both regional and global companies. As the country transitions to a knowledge-based economy, tech startups have a key role to play.

All this places an even bigger emphasis on local founders to develop a comprehensive understanding of the maturing market, and demonstrate value and innovation.

They can take heart from the $100m raised in a Series C funding round a few months ago by eyewa, the Middle East’s largest online eyewear retailer, with headquarters in Riyadh and Dubai.

The capital will play a pivotal role in the company plans to invest in R&D and talent acquisition, and open at least 100 new stores in 2025.

It highlights how selective investors are becoming. Only startups with a clear value proposition, a solid business model, and a strong potential for growth, are able to attract significant funding.

Have a clear plan to scale

Having a great idea is no longer enough. Entrepreneurs need a clear plan to scale their business. They must demonstrate a deep understanding of their market, and that their product or service can not only survive, but thrive, in a rapidly changing economic landscape.

Today’s investors are more cautious, prioritising startups with proven track records, scalable business models, and clear paths to profitability.

Tech entrepreneurs need to focus on building a strong brand, creating a loyal customer base, and demonstrating their ability to adapt to market changes.

In addition to creating a strong product and business model, startups must also be prepared to showcase their resilience. The general decline in funding this year is a reminder of how quickly market conditions can change.

Entrepreneurs need to be flexible, ready to pivot when necessary, and be prepared to weather economic downturns. Building a startup is a long-term journey, and those who can adapt to challenges and stay focused on their goals are more likely to succeed.

An influx of international players has increased the competitive nature of the MENA startup scene. The UAE ’s emergence as a hub for innovation is built on government initiatives like business accelerators and funding to attracting entrepreneurs from around the world.

Local entrepreneurs are no longer competing only with their regional peers, but also with startups from more established markets like Europe and the U.S.

This places an even bigger emphasis on them to develop a comprehensive understanding of the market, and be able to position their company as a leader in that space.

Customer experience is another critical area. Startups that prioritise the needs of their customers and work to build strong relationships with them are more likely to gain loyalty and positive word of mouth, which can be invaluable in attracting new customers and investors.

Continuous learning is crucial in a fast-changing world. Entrepreneurs need to keep up with the latest trends, technologies, and strategies. By attending industry events, reading industry news and taking online courses, founders can stay informed and ready to adapt to market shifts.

Building a strong team is just as important. Hiring talented people who believe in the company’s goals can help overcome challenges and achieve success.

Patience and perseverance are essential traits for any founder. The funding process shows that success takes time. Entrepreneurs need to be ready for setbacks and keep pushing toward their long-term goals.

While the path ahead may be difficult, those who are able to navigate these challenges with resilience and vision will have the best chance to thrive.

A clear view of where you want your company to go is essential. It’s not just about making money; it’s about creating something that will make a difference.

Focus on the following

Intuition: While data and numbers are important, sometimes you need to trust your gut. Your intuition can help you make good decisions, especially when things get tough.

Courage: The tech world is full of risks and uncertainties. You need to be brave and willing to take chances to succeed.

Motivation: Having a strong reason for starting your company can help you stay motivated,

Foresight: It’s important to think about the future and be prepared for what’s to come. This means staying up-to-date on trends and technology.

Inspiration: Building a successful company can be inspiring, but it’s also important to be inspired by others. Look for role models and mentors who can help you on your journey.

The writer is the sirector and co-founder of Scalo Technologies.