Retail is entering a new phase, one defined less by experimentation and more by execution.

Across the Middle East, retailers are navigating a more complex environment than at any point in recent years. Cost pressures remain high, consumer expectations continue to rise, and the pace of technological change is accelerating. At the same time, AI has moved firmly into the mainstream, shaping how customers discover products, how stores operate, and how decisions are made across the value chain.

What we’re seeing now is a shift in focus. Retailers are no longer asking what AI could do. They’re asking how to make it work, consistently and at scale, across their own environments.

That question is being driven by pressure on multiple fronts at once: tightening margins, volatile supply chains, ongoing labour constraints, and rising customer expectations, all while being asked to accelerate digital transformation. AI is increasingly where retailers are turning for answers. Recent insights from Lenovo’s CIO Playbook, developed in collaboration with IDC, show how quickly this shift is happening in the Middle East: 92% of retail organisations plan to increase their AI budgets in the next 12 months, and focus on Agentic AI has grown 27% year-on-year.

These investments aren’t happening in a vacuum. IT leaders are making them in response to clear business priorities, and retailers are showing increasing alignment between their AI initiatives and measurable outcomes, including revenue growth and operational efficiency goals.

Confidence in AI’s value is high across the industry. In the Middle East, 91% of organisations expect a positive return on their AI initiatives, generating an average of $2.74 for every dollar invested, reinforcing the shift from experimentation to scale with measurable impact.

What’s emerging is not just a wave of innovation, but a redefinition of how retail operates. AI is being embedded into core processes, from personalisation and merchandising to inventory and store operations, with speed and execution becoming the critical differentiators.

The Store Is Being Reimagined, Not Replaced

The role of the store is evolving as part of this transformation. Physical retail needs to be more connected, more responsive, and more intelligent. Associates are supported by real-time insights, customers expect personalised engagement as a default, and operations increasingly rely on data flowing seamlessly across systems. It’s no coincidence that improving customer experience now ranks as the top focus for AI investment: retailers recognise that every interaction is an opportunity to differentiate.

Delivering that level of capability requires more than isolated solutions. It depends on a foundation that brings infrastructure, devices, data, and services together in a coordinated way.

Why Hybrid AI Matters

Retail environments generate enormous volumes of data across stores, warehouses, and e-commerce platforms, and not all of that data belongs in the same place. Some workloads need the speed of processing at the edge, close to where a transaction or interaction actually happens. Others benefit from the scale of the cloud. Some are best kept on-premise for cost, security, or compliance reasons. Hybrid AI allows retailers to process the right workload in the right place, balancing latency, cost, security, and scalability, rather than forcing every use case through a single environment.

Lenovo’s approach is built around this idea. Combining edge, cloud, and on-premise capabilities to enable intelligence where it matters most, and in collaboration with NVIDIA, the Lenovo Hybrid AI Advantage helps retailers move beyond pilots and proofs of concept towards environments where AI is embedded into everyday operations.

Governance Has to Scale Alongside Innovation

As AI adoption matures, governance becomes just as important as innovation. Retailers need to ensure customer data is protected, that models are accountable, and that AI deployments align with regulatory and organisational requirements. This matters more, not less, as AI moves from isolated pilots into systems that touch pricing, inventory, and personal customer data at scale. Building governance into the foundation of an AI deployment, rather than retrofitting it after the fact, is what allows retailers to scale AI with confidence rather than exposure.

A Connected Retail Ecosystem

One of the most important developments we’re seeing is the move towards more connected retail ecosystems. Customers experience brands across multiple touchpoints, and they expect consistency as they move between them. At the same time, retailers are looking to connect systems, channels, and data in ways that improve both efficiency and engagement.

AI plays a central role in enabling this. Whether it’s supporting store teams, powering customer interactions, or helping optimise operations, the value comes from how these capabilities work together, not from individual features in isolation.

This is where integration becomes critical. Retailers need solutions that fit into their existing environments, scale across locations, and adapt as their needs evolve. That requires both the right technology foundation and the right partner ecosystem to support it.

Bringing the Store of the Future to Life

At Shoptalk Europe 2026, Lenovo and NVIDIA are bringing together the capabilities that Middle East retailers are increasingly asking about, not as concepts, but as working deployments.

The demonstrations reflect where retail AI is actually being applied today:

• AI Retail Assistants: drawing on insights across multiple systems to help service teams resolve customer issues faster and deliver consistent support across in-store and digital channels.
• Retail Floor Assistant: an in-store digital agent that guides shoppers and surfaces relevant products through conversational AI, designed for the kind of high-footfall environments common across Gulf retail.
• Smart Store Services: connecting store systems to monitor operations in real time and surface actionable insights for floor teams and operations managers.
• Digital shelves and predictive maintenance: AI-driven monitoring that reduces downtime and supports more efficient store management across distributed networks.
• Analytics and workflow automation: helping retailers process data and manage operations consistently across multiple locations.

These are not pilots. They reflect where the industry is already moving, and where Middle East retailers, with some of the highest AI investment intentions globally, are increasingly headed.

Partnering for the Next Phase of Retail

Execution is where retail AI strategies succeed or stall. Across the Middle East, 91% of organisations expect positive ROI from their AI investments, but only 46% of proofs of concept reach production. Integration, governance, staff adoption, infrastructure at scale: this is where complexity lives.

For retailers in the region, that execution gap is the defining challenge. Lenovo and NVIDIA are focused on closing it, helping retailers move from pilot to production in the environments they actually operate in. That is what turns AI investment into AI impact.

• Chadie Ghadie is CTO for Lenovo Infrastructure Solutions Group (Middle East & Africa)

UAE travellers have a limited window to take advantage of a range of flight and holiday offers, with airlines rolling out deals that combine discounted airfares with complimentary experiences and added travel benefits.

Among the offers currently available, Air Arabia is advertising one-way fares from Dhs 219 on selected routes, while Emirates is offering travellers flying to Dubai complimentary access to major attractions including Aquaventure Waterpark, Lost World Aquarium and a Dubai sightseeing bus tour.

With several of the promotions tied to booking deadlines in October, travellers planning trips for the final months of 2026 and the start of 2027 may want to compare the offers before they expire.

Air Arabia launches fares from Dhs 219

Air Arabia has launched a promotional fare campaign offering one-way flights from Dhs 219 across destinations in the GCC, Middle East, Europe, Central Asia, South Asia and Africa.

The Sharjah-based low-cost carrier said bookings under the promotion must be made by October 10, 2026, for travel between October 15, 2026 and February 28, 2027.

The promotion covers departures from both Sharjah and Abu Dhabi, giving UAE-based travellers a broad selection of routes.

Among the lowest fares displayed by the airline is a Sharjah-Amman flight from Dhs 219. Abu Dhabi-Kuwait fares start at Dhs 229, while flights from Abu Dhabi to Salalah begin at Dhs250.

Other regional offers include Sharjah-Kuwait from Dhs 269, Sharjah-Muscat and Abu Dhabi-Bahrain from Dhs 299, and Sharjah-Doha from Dhs 349. Abu Dhabi-Beirut starts from Dhs 358, while Sharjah-Salalah fares are available from Dhs 379.

Flights to Egypt, Syria and Lebanon are also included, with Sharjah-Cairo fares starting from Dhs 489 and Sharjah-Damascus from Dhs550, based on fares displayed on the airline’s booking platform.

European breaks from Dhs 379

Travellers looking towards Europe can also find discounted fares under the Air Arabia campaign.

Sharjah-Istanbul flights to Sabiha Gökçen Airport start from Dhs379, while fares to Prague and Vienna begin at Dhs 598. Flights to Athens, Krakow, Warsaw and Gdańsk are listed from Dhs599.

Further west, flights from Sharjah to Munich start at Dhs698. London Gatwick, Düsseldorf and Frankfurt are available from Dhs 798, while Milan-Bergamo and Rome fares start from Dhs 848.

The promotion also covers Central and South Asia. Sharjah-Tashkent fares start at Dhs 548, while Baku, Tbilisi, Almaty, Yerevan and Bishkek are listed from Dhs549. Moscow fares start from Dhs1,048.

For South Asia, fares include Sharjah-Karachi from Dhs405, Peshawar from Dhs459, and selected flights to Sialkot, Multan and Faisalabad from Dhs465 to Dhs472. Sharjah-Islamabad starts from Dhs500, while Lahore fares begin at Dhs 514.

Abu Dhabi-Colombo fares start from Dhs 390, while Sharjah-Colombo begins at Dhs599. Flights from Sharjah to Malé in the Maldives start from Dhs749.

Selected African routes are also part of the campaign, including Sharjah-Addis Ababa from Dhs528 and Sharjah-Nairobi from Dhs535.

Air Arabia has cautioned that fares are subject to availability and can change at the time of booking. Additional charges may also apply for optional products and services.

Emirates adds free Dubai attractions

For travellers planning a Dubai trip, Emirates has introduced a separate offer that adds complimentary experiences to eligible return tickets.

Under the promotion, travellers booking an eligible return flight to Dubai between September 21 and October 11, 2026, for travel between September 24 and December 13, 2026, can receive complimentary passes worth Dhs535.

The package includes a 24-hour City Sightseeing Hop-on Hop-off bus ticket, entry to Atlantis Aquaventure Waterpark and access to Lost World Aquarium.

Emirates said the offer is designed to give visitors additional value as Dubai enters its busy winter season, when the city hosts a packed calendar of festivals, events and attractions.

Adnan Kazim, deputy president and CCO at Emirates, said Dubai offers a wide range of experiences across leisure, dining, shopping and entertainment, adding that the airline wants customers to make the most of their visit through complimentary excursions and additional offers.

More savings once travellers arrive

The Emirates offer extends beyond the complimentary attractions. Through My Emirates Pass, customers can access discounts at participating restaurants, shops, spas, leisure venues and other businesses across the UAE by presenting their Emirates boarding pass and valid identification.

Travellers can also use Dubai Experience to build personalised itineraries covering hotels, dining, attractions, tours and activities across different budgets.

Emirates is also highlighting flexibility benefits, including unlimited free date changes on eligible Dubai bookings, the option to hold a fare for 24 hours without charge and reduced refund fees.

Skywards members can benefit further through free Wi-Fi on Emirates flights and opportunities to earn or redeem Skywards Miles across participating retail, dining and leisure outlets.

October 11 is the key deadline

The most immediate deadline for travellers is October 11, when the Emirates Dubai attraction promotion closes. Air Arabia’s flight sale ends one day earlier, on October 10.

For UAE residents planning winter breaks, family holidays or short regional getaways, the promotions offer a range of ways to reduce the overall cost of travel. However, fares, availability and eligibility vary, making it important for travellers to check the applicable terms before booking.

With Air Arabia’s fares extending into February 2027 and Emirates’ complimentary Dubai experiences available for travel through December 13, the current offers provide travellers with opportunities to lock in value before the October deadlines pass.

Saudi Arabia is tightening regulatory requirements across parts of its food sector, with new conditions for importing fruits and vegetables and updated rules governing ice cream shops.

The new import licensing guide, approved by Minister of Commerce Dr Majid Al-Qasabi, sets the validity period for import permits for fruits and vegetables at 15 days from the date of issuance. The regulations are scheduled to take effect after 30 days.

Under the new rules, importers must obtain an import permit at least 24 hours before a shipment reaches the port of entry. Shipments cannot be dispatched until approval has been granted, while any shipment arriving without an import permit will be rejected, with the importer bearing full responsibility, a Saudi Gazette report said.

Importers must also secure a license to import fruits and vegetables from the Ministry of Environment, Water and Agriculture and hold a commercial registration appropriate to the nature of their business. Imported products must be listed on the invoice, while all mandatory fields in the import permit application must be completed.

Read more: Saudi’s new food violation rules: What eateries need to know

The regulations also place emphasis on food and agricultural safety. Shipments must be free of pesticide residues or contain residues only within limits permitted under standards adopted by the Saudi Food and Drug Authority. They must also be free of pests listed in the Kingdom’s agricultural quarantine pest lists.

Digital documentation and faster processing

The new guide allows importers to submit an electronic copy of the phytosanitary certificate, including a QR code or a verification link. Import applications must also be supported by the certificate of origin, shipping documents and customs certificate.

Applications are submitted through the “Nama” platform, with authorities setting a maximum processing period of seven working days for each application. Importers whose applications are rejected can appeal to the Ministry of Environment, Water and Agriculture within 15 days of being notified of the decision.

Ice cream businesses face updated operating standards

Separately, the Ministry of Municipalities and Housing has updated regulations governing ice cream shops, introducing requirements aimed at strengthening food safety, clarifying business obligations and improving service quality.

The updated rules cover food safety throughout the operating process, from receiving products to storage, preparation and serving. They include requirements for temperature control, allergen disclosure, hygiene and sterilization procedures.

Employees must obtain health certificates, maintain personal hygiene, wear protective clothing and follow established food safety practices. Ice cream establishments are also required to provide electronic payment systems and use standardized QR codes.

The ministry said the updated regulations clarify the obligations of investors and business owners during both the establishment and operation of their businesses. The changes are intended to support business development while prioritizing customer safety and service quality.

Together, the measures reflect a broader push to strengthen compliance and food safety requirements across the Kingdom’s food-related businesses, while giving importers and operators clearer standards to follow.

Saudi Arabia’s Jeddah Tower is now targeting completion in late 2028, pushing back its previous timetable by several months as construction continues on what is set to become the world’s tallest building.

Fabien Toscano, chief executive of Jeddah Economic Company (JEC), said the tower reached its 116th floor last month, taking the structure to a height of around 466 metres. That leaves 41 floors of the planned 157 still to be constructed.

The updated timetable moves completion beyond the August 2028 target previously cited for the project.
Once finished, Jeddah Tower is planned to rise more than 1,000 metres above the Red Sea city, surpassing Dubai’s 828-metre Burj Khalifa, which has held the title of the world’s tallest building since opening in 2010.

Speaking at the Saudi Mega Projects 2026 summit in Riyadh, Toscano said rising procurement and construction costs were among the pressures facing contractors delivering major projects across the kingdom and wider region.

The three-day summit, which ran from September 28 to 30, brought together developers, contractors and government stakeholders involved in Saudi Arabia’s large-scale construction programme.

Jeddah Tower construction gathers pace

Construction on Jeddah Tower has accelerated significantly since work formally resumed.

In October 2024, JEC signed a SAR7.2bn agreement with Saudi Binladin Group to complete the tower. At that point, 63 of its 157 floors had been constructed, with around SAR1.1bn of the contract value relating to work already completed. JEC said the remaining construction would be financed through internal funding and banking facilities.

By March this year, the building had reached the 91st floor and around 370 metres, with crews completing approximately one floor every five days. Kingdom Holding said at the time that façade, mechanical, electrical and plumbing works were also progressing.

The latest milestone of 116 floors means the structure has added another 25 floors in roughly six months.

Jeddah Tower will anchor the wider Jeddah Economic City, a 5.3 million square metre mixed-use development in North Obhur. Kingdom Holding describes the skyscraper as the centrepiece of the project.

The tower itself will include a Four Seasons hotel, residential apartments and luxury condominiums, office space and an observation deck overlooking the Red Sea that is planned to become the highest in the world.

The project began more than a decade ago but experienced a lengthy construction hiatus before its revival. Since work resumed, it has emerged as one of the most closely watched projects in Saudi Arabia’s rapidly expanding real estate and construction sector.

If the new late-2028 target is met, Jeddah Tower will end the Burj Khalifa’s nearly two-decade reign at the top of the global skyscraper rankings.

Workers in Gulf Cooperation Council countries sent about $161bn abroad in 2025, the highest combined value of outward workers’ remittances globally and 13.6 per cent more than a year earlier, according to the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat).

The six-member GCC comprises Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain.

The increase amounted to about $19bn compared with 2024 and marked the second consecutive year of growth after a decline in 2023, the GCC-Stat said.

It linked the increase to continued demand for expatriate workers alongside expansion in infrastructure projects, services, industry and other non-oil sectors across the Gulf economies.

Remittances value to GCC GDP

Workers’ remittances were equivalent to about 6.6 per cent of the GCC’s combined gross domestic product in 2025, up from 6.0 per cent in 2024, 5.7 per cent in 2023 and 5.6 per cent in 2022.

The statistical centre said the ratio reflected the relative size of remittance flows compared with the Gulf economies and did not in itself indicate an improvement or deterioration in economic performance.

The GCC’s combined total exceeded outward workers’ remittances recorded by several major economies individually, according to the report.

Remittances from the US stood at about $107bn, while Switzerland recorded around $43bn, Germany $27bn and France $21bn.

Remittance flows from the Gulf are an important source of household income and consumption in recipient countries, particularly across Asia and other major expatriate labour markets.