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Tue, Nov 11, 2025 | Jumada al-Awwal 20, 1447 | Fajr 05:13 | DXB 
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UAE leads GenAI revolution: Transforming banking and economic growth
Proactive regulation, strong economy and tech-savvy population key growth factor for rapid GenAI adoption in the Emirates
The UAE has rapidly emerged as a global leader in the adoption of Generative AI (GenAI) due to its proactive regulation, strong economy and tech-savvy population, experts say.
Leading banking executives and experts said this transformation is fuelled by a strategic vision propelled by its government, which recognises the potential of AI technologies to enhance economic diversification, boost productivity, and improve quality of life.
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“The UAE is hosting international conferences and competitions, promoting collaboration among startups, researchers, and industry leaders. This proactive approach not only nurtures local talent but also invites global players to engage in the UAE’s vibrant tech landscape. As a result, the UAE is not only leveraging GenAI for economic growth but also setting standards for ethical AI practices and sustainability, making it a model for other nations seeking to harness the transformative power of technology,” industry specialists and banking leaders told BTR ahead of Gitex Global.
Key initiatives, such as the UAE's Artificial Intelligence Strategy 2031, aim to integrate AI across various sectors, including healthcare, education, and finance. The establishment of the UAE's AI Council and substantial investments in tech infrastructure have created an ecosystem that fosters innovation and attracts global talent. Major partnerships with leading technology firms and academic institutions further enhance the nation's capabilities in GenAI.
The UAE is positioning itself as a global hub for AI – the sector could contribute about $320 billion to the Middle East’s GDP by 2030, with the UAE accounting for close to 14% of its economy, according to PricewaterhouseCoopers estimates.
McKinsey forecasts that generative AI alone could add between $21 billion and $35 billion annually to Gulf economies, equivalent to up to 2.8% of today’s non-oil gross domestic product (GDP), with banking and finance among the top beneficiaries.
In its latest report, the global consultancy estimates that AI could add over $1 trillion annually to the global banking industry through enhanced efficiencies, cost reductions, and innovation.
The Gulf market, valued at around $5.4 billion in 2024, is projected to reach more than $22 billion by 2033, according to Imarc Group.
AI Transforming Banking
Analysts and financial experts opine that the possibilities for AI in the banking sector are still unfolding, and as the technology evolves, the industry can expect even more advanced applications. They are of the view that digital banks in the UAE have shown that AI automation is not a future bet; it’s a present-day growth engine.
“Institutions that master it will set the pace for the region — and define the global benchmark for what modern and intelligent finance can be.”
Analysts said the UAE’s ambition to achieve a 90% cashless economy by 2026 has turbocharged AI adoption. With 71% of financial institutions in the UAE having deployed or enhanced AI capabilities over the past year, the country now ranks among the world’s top adopters. This growth is being fuelled by robust government initiatives, supportive regulations, and substantial investments from both the public and private sectors.
As the UAE continues to lead digital transformation in the financial sector, AI will play an indispensable role in shaping the future of banking. The UAE banking sector is actively adopting AI to enhance efficiency, customer experience, and security. This aligns with a strong governmental push towards digitalisation and innovation within the financial sector, including initiatives like the UAE’s AI Charter and Dubai’s Artificial Intelligence Strategy 2031. AI is also being integrated into the broader financial landscape, including fintech startups and blockchain applications.
With openness to AI relatively high in the UAE, banks have warmly welcomed AI solutions such as robo-advisors, conversational AI, models for detecting fraud, algorithmic trading, and AI-driven customer service automation. The AI-driven platforms may also recommend customised investment portfolios, personalised savings plans, or suitable loan options based on individual financial goals and risk appetites.
Smarter Decesion-making
Giovanni Everduin, Chief Strategy and Innovation Officer, Commercial Bank International (CBI), said the potential for AI spans nearly every aspect of the bank, from front-end interactions to back-end operations, ultimately enhancing customer experience and enabling a more seamless way of banking.
“AI has the opportunity to empower smarter decision-making, further enhance risk controls, and drive greater efficiency bank-wide. As we continue to explore possibilities, our focus remains on harnessing AI in a responsible manner that aligns with our strategic goals and values,” Everduin told BTR.
Established in 1991 and headquartered in Dubai, CBI is a leading UAE bank dedicated to empowering businesses and individuals through innovative, personalised, and growth-focused banking solutions. It is listed on the Abu Dhabi Securities Exchange and provides bespoke banking services to help clients achieve their ambitions.
“We, CBI, are actively exploring various use cases for AI and synthetic data to enhance our customer experience, improve operational processes, and strengthen risk management. It’s important our approach strikes a finebalance between embracing innovation, delivering meaningful value, and remaining fully compliant,” Everduin said.
He was of the view that the integration of GenAi is not a short-term initiative but a long-term commitment to reshaping financial services. “Absolutely. In fact, GenAI represents only a small fraction of the capabilities that AI and synthetic data can unlock.”
“As models become more advanced and use cases gain wider adoption, this technology is poised to reshape not just financial services, but the world at large. One particularly interesting area for finance is agentic AI, especially in the context of the UAE’s new regulatory framework for dirham-backed stablecoins. The combination of programmable money and semi-autonomous AI agents create a powerful synergy, ideally suited to digital channels and e-commerce use cases,” he said.
UAE — Leader in AI-driven Services
Ghady Rayess, Co-founder and Managing Director at Foo, said AI adoption in the UAE’s banking sector is accelerating rapidly, and it’s reshaping the way customers interact with financial services.
From personalised financial advice and smarter fraud detection to seamless digital onboarding, he said AI is enhancing both efficiency and customer experience.
“For customers, this means faster, more secure and more intuitive banking, anywhere. The UAE’s progressive regulatory environment is also encouraging innovation, which will position the region as a leader in AI-driven financial services globally,” Rayess told BTR.
Foo, a UAE-based, award-winning B2B SaaS company driving digital transformation in the fintech space, works with banks, fintech companies, and key retailers across the Mena region, Africa, Europe, and the USA, including Mastercard, Visa, Benefit, Zain Group, PwC, and MAF. It provides innovative fintech solutions, built entirely in-house, that optimise digital capabilities for clients across diverse industries and enable them to deliver an unparalleled user experience.
Rayess said the UAE banks and financial institutions have made significant investment in GenAI to automate banking services, improve efficiency and ensure best services to their customers.
“While exact figures vary across institutions, the UAE banking sector has significantly increased its investment in GenAI over the past 18-24 months. We’re seeing banks allocate tens of millions of dollars annually toward AI initiatives from automating routine processes like KYC and compliance checks, to enhancing call centres with AI-driven chatbots, to leveraging predictive analytics for risk management.
“The ROI is clear: improved efficiency, reduced operational costs and stronger customer engagement. Over the next three to five years, I expect these investments to multiply as GenAI moves from pilot projects to full-scale adoption across the sector,” he said.
STRATEGIC FOCUS
George Harrak, Chief Executive Officer of Jeel — the digital innovation arm of Riyad Bank, also echoed the similar views and said GenAI adoption remains a strategic focus
“Yes, we are already actively using GenAI to enhance our day-to-day operations. From using copilot to AI tools that support software development, GenAI is embedded in our workflows. We’re also prioritising the use of AI to optimise processes and automate critical business functions across the financial services domain,” Harrak said.
As the digital innovation arm of Riyad Bank, Jeel is dedicated to pioneering technological advancements and delivering cutting-edge solutions that shape the future of technology. With a focus on enhancing the digital experience for its customers, Jeel is at the forefront of cloud-based innovation in the financial industry.
In reply to a question budget allocation for GenAI, he said: “We are making substantial investments in GenAI, both internally and through our Jeel sandbox initiative. These efforts support the development of AI-powered fintech propositions and innovation within the bank. GenAI adoption remains a strategic focus as we continue scaling our capabilities into 2026 and beyond.”
About integration of GenAI is not a short-term initiative but a long-term commitment to reshaping financial services, he said: “We believe GenAI adoption is already underway — it’s not a future consideration, but a present reality. Its benefits are tangible. That said, it’s essential that GenAI is implemented responsibly, with strong governance in place. At Jeel, we are committed to making GenAI a core part of our long-term strategy, ensuring its use remains compliant and well-regulated.”
GenAI — A Reality
Mihir Modi, Vice-President Strategy, zypl.ai — a startup specialising in generative AI for lending solutions, said the UAE’s banks have decisively moved past ‘pilot theatre’.
“Artificial intelligence is no longer confined to trials; it is being deployed across risk, customer service, and operations. Clear regulatory guardrails, a growing talent pool, and leadership from the top have created an ecosystem where AI can scale,” Modi told BTR.
For customers, the benefits are already visible:
Speed. Onboarding, document checks, and everyday service are becoming minutes-long, always-on experiences powered by automation and generative AI.
Safety. Smarter anomaly detection and stronger identity controls stop more fraud while reducing friction.
Personalisation. Credit limits, repayment plans, and even collections are increasingly tailored to individual behaviour rather than broad averages.
“At zypl, we see the next competitive edge not in simply amassing more data but in making data more resilient. Our patented zGAN technology generates synthetic ‘black swan’ scenarios, enabling banks to stress-test credit, fraud, and collections models against rare but high-impact shocks.
“Combined with Lucid platform, institutions can design, govern, and deploy AI models end-to-end with confidence. The impact is practical: fewer false declines, faster approvals for reliable borrowers, and broader access to finance,” says Modi.
Challenges ahead
Rayess of Foo see challenges ahaed for GenAI in the banking and insurance sector, but is of the view that GenAi has immense potential.
“Yes, while the potential is enormous, there are challenges that institutions must navigate carefully. The biggest concerns are around data privacy, regulatory compliance and ethical use of AI-generated outputs.”
He said GenAI models require vast amounts of data and safeguarding sensitive financial and personal information is non-negotiable. Another challenge is ensuring transparency, customers and regulators alike need confidence that AI-driven decisions are explainable and unbiased.
“Finally, adoption also requires reskilling teams and integrating new technologies into legacy systems, which can be complex and costly,” he said.
In the UAE, Modi of zypl.ai, said the GenAI question has shifted from if to how well. He said banks and insurers are rolling out real systems to speed up onboarding, keep service always on, and tailor products to individual needs.
“The risks are practical. Trust depends on decisions that can be explained and owned. Reliability meansoutputs are tied to policies and records, not just confident text. Security must keep pace with adversaries through stronger liveness, device, and behavioural checks.”
Insurance faces a sharper edge. Data can be thin or skewed, especially in newer lines like cyber or SME health, which can distort pricing and claims, according to Modi.
“Models often underweight rare, high-severity events — the very moments that define insurance performance. And claims remain document-heavy, where inconsistent inputs can push GenAI off course. Regulators, meanwhile, expect fairness, explainability, and audit trails across underwriting and claims.”
He said zypl.ai helps institutions meet those standards without slowing down innovation. “Our patented zGAN creates fully anonymised, privacy-preserving synthetic data —including rare “black swan” scenarios — so teams can stress-test pricing, underwriting, fraud, and claims models before they go live.
“Because the data is synthetic and fully anonymised, it does not violate privacy. We also simulate distribution shifts to reveal drift early and reduce both false declines and over-pays, while keeping model rationales aligned with policy,” he said.
AI has the opportunity to empower smarter decision-making, further enhance risk controls, and drive greater efficiency bank-wide. As we continue to explore possibilities, our focus remains on harnessing AI in a responsible manner that aligns with our strategic goals and values.”
Economic Impact
> $320 billion estimated contribution of AI to the Middle East’s GDP by 2030 (PwC), with the UAE accounting for 14%
> $21–$35 billion per annum potential GenAI impact on Gulf economies (McKinsey), especially in banking and finance
> $1 trillion global banking industry gains from AI through efficiency, cost reduction, and innovation
> $5.4 billion – $22 billion projected growth of the Gulf AI market from 2024 to 2033, according to Imarc Group
Muzaffar Rizvi
Muzaffar Rizvi is an accomplished financial journalist with more than 25 years of experience in the UAE and Pakistan. He has good writing skills, strong grip on production and an excellent news sense.
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