Artificial intelligence industry in MENA - statistics & facts
Artificial intelligence (AI) is playing an increasingly important role in technological development worldwide, including in the Middle East and North Africa (MENA) region. Governments and businesses are integrating AI into national plans, economic diversification, and public services to boost productivity and innovation. The region's AI market is expected to exceed 34 billion U.S. dollars by 2030.
Smart city initiatives in Saudi Arabia and digital government services are also expanding, aiming to improve efficiency and accessibility. Countries are adopting e-governance platforms, digital payment systems, and blockchain-based solutions to enhance transparency and streamline administrative processes. In Saudi Arabia, 97 percent of government services have been digitalized, while in the UAE, more than 400,000 health services were completed through the country’s digital health platform.
The advancement of AI and digitalization in MENA is driven by a combination of government strategies, private sector initiatives, and technological investments. While challenges such as infrastructure development and regulatory frameworks persist, continued progress in these areas is expected to support economic growth and innovation across the region.
AI strategies and national initiatives
Several MENA countries have launched national AI strategies to accelerate adoption and attract investment. The United Arab Emirates was the first to appoint a Minister of State for Artificial Intelligence, integrating AI into government operations and economic planning. Meanwhile, Saudi Arabia, through its Vision 2030 strategy, is incorporating AI across industries to enhance services, streamline processes, and leverage data analysis for business intelligence. Other countries in the region are also expanding AI infrastructure, research, and talent development to enhance their global competitiveness. Notably, Iran, Algeria, Oman, Morocco, and Qatar rank among the top 10 countries in commercial AI investment scores globally, reflecting strong startup activity and business initiatives in AI across MENA.AI’s expanding role across MENA sectors
AI is advancing across multiple sectors in MENA. In healthcare, it aids early diagnosis and predictive analytics, while in transportation, AI-powered systems enhance traffic management and transit efficiency. Financial institutions use AI for fraud detection and customer service automation, and the retail and education sectors integrate AI-driven solutions to streamline operations. As adoption expands, governments are establishing ethical frameworks and data privacy regulations to ensure responsible implementation. However, challenges such as cybersecurity risks and regulatory alignment remain key considerations for the region’s long-term digital growth.Digital transformation and infrastructure
Beyond AI, digitalization is playing a crucial role in shaping the future of the MENA region. Governments and businesses are investing heavily in cloud computing, cybersecurity, and high-speed connectivity to drive economic diversification and technological progress. A 2024 survey of technology professionals in the UAE found that cloud services and cybersecurity were the top investment priorities for organizations.Smart city initiatives in Saudi Arabia and digital government services are also expanding, aiming to improve efficiency and accessibility. Countries are adopting e-governance platforms, digital payment systems, and blockchain-based solutions to enhance transparency and streamline administrative processes. In Saudi Arabia, 97 percent of government services have been digitalized, while in the UAE, more than 400,000 health services were completed through the country’s digital health platform.
The advancement of AI and digitalization in MENA is driven by a combination of government strategies, private sector initiatives, and technological investments. While challenges such as infrastructure development and regulatory frameworks persist, continued progress in these areas is expected to support economic growth and innovation across the region.
