MENA's AI Moment: Seizing The Opportunity To Lead Change

Harrison Lung is the Group Chief Strategy Officer of e&. He oversees strategy, M&A, venture capital, transformation and sustainability.

There’s a palpable buzz in the air as several global and regional elements have aligned, turning the tide toward an AI-powered future. In the Middle East, countries such as the UAE and Saudi Arabia are reaping the benefits of long-standing national AI strategies. Cloud infrastructure is rapidly expanding with major investments from tech giants such as Google and AWS as data center capacity continues to scale at an unprecedented pace.

Bold Government Initiatives

The public sector is adding to the furor. A few examples include the recently launched "Abu Dhabi Government Digital Strategy 2025-2027," an investment of 13 billion United Arab Emirates dirham in AI-driven governance and innovation; Sheikh Mohammed bin Rashid Al Maktoum's plan to train one million people in AI in partnership with Microsoft; and Saudi Arabia's "Project Transcendence," a $100 billion investment aimed at establishing itself as a major player in AI.

I am inspired by the boldness of these initiatives and the promises they hold for the Middle East and North Africa (MENA) region. At e&, "Digitalize and Transform Operations" is one of our strategic pillars. And as Group Chief Strategy Officer, I see firsthand how these advancements can create a step-change in efficiency. This is why, more than a year ago, we appointed our first Group Chief AI and Data Officer to oversee our AI-driven transformation and bring the vision to life while upholding the highest standards of ethical innovation and accountability.

Balancing Ambition With Reality

Successful AI adoption requires balancing ambition with the realities of the region’s baseline infrastructure and capabilities. Our recent study with IBM helps to frame this paradox. We found a strong appetite for AI in the region, with 65% of CEOs leading the charge in GenAI adoption, exceeding the global average of 61%.

However, MENA CEOs saw a sharper drop in confidence in their digital infrastructure's ability to deliver value—falling from 82% to 64%, compared to 83% to 71% globally between 2023-2024, highlighting the need for region-specific strategies to address capability gaps and accelerate innovation.

According to McKinsey, GenAI is expected to generate $15 to $25 billion in annual incremental economic value in the UAE and Saudi Arabia. And to truly realize the potential, decision makers in the region must focus on building robust data and infrastructure and addressing capability gaps. Establishing a solid data foundation is paramount, as it ensures reliable, high-quality data for AI systems to drive actionable insights.

Hybrid cloud provides the agility to meet the demands of AI workloads while optimizing costs and security. These foundational steps are essential for delivering AI solutions that generate meaningful business outcomes.

Achieving AI Success

But it’s not only about machines and capital. As machine-focused as the AI world is, its success ultimately hinges on people. Despite this, only 23% of MENA CEOs prioritize talent development, even though bridging the AI skills gap is critical.

This wave of AI innovation demands a human-centric approach, where ethics and inclusion cannot be forgotten in the race to AI dominance. Responsible AI must be an integral part of this journey. That means working with trusted partners, building strong frameworks and keeping ethics at the center of everything.

End-to-end governance solutions equipped with features such as automated risk management, compliance monitoring and real-time performance analysis play a vital role in ensuring accountability as businesses integrate AI into their operations. These tools enable early detection of issues like bias and drift, facilitate timely corrective action and help organizations comply with regulatory standards throughout the AI lifecycle—from development to deployment.

Furthermore, public-private partnerships play a critical role in bridging capability gaps and accelerating progress. These collaborations unite resources, expertise and innovation to develop critical infrastructure, foster cutting-edge advancements and build robust talent ecosystems.

The Path Forward

Ultimately, success in AI hinges on a structured and disciplined approach. Begin with a thorough foundation: Establish a clear baseline, develop customized roadmaps and prioritize projects with demonstrable value measured by clear KPIs. Transition seamlessly to implementation by securing essential resources and focusing on achieving tangible, measurable outcomes. Maintain a firm focus on both short-term victories and long-term strategic objectives.

A comprehensive, ecosystem-led approach—rooted in internal alignment, an integrated AI roadmap, operational excellence and strategic public-private partnerships—is crucial for ensuring that businesses leverage the region’s unique momentum and strengths to fully realize the value of AI.

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