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UAE: Short-term job displacement to lead to reinvention as AI shapes GCC banking
To mitigate displacement, the UAE is investing heavily in reskilling
- PUBLISHED: Sun 16 Feb 2025, 3:30 PM
The GCC banking sector is navigating a pivotal transformation as artificial intelligence (AI) disrupts traditional workflows, displacing routine roles while creating demand for tech-driven expertise.
With the UAE spearheading innovation, economists warn of short-term labour market turbulence but emphasise long-term gains in productivity, customer experience, and economic diversification.
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The UAE’s ambition to achieve a 90 per cent cashless economy by 2026 has turbocharged AI adoption. Digital wallets like Aani and neobanks (Wio, Yap) dominate, with 50 per cent of UAE customers using digital-only services. Wio alone captures one-third of new SME accounts, leveraging AI for real-time financial analytics.
To mitigate displacement, the UAE is investing heavily in reskilling. Emirates NBD’s digital upskilling initiative, endorsed by CEO Shayne Nelson, trains employees in AI management and data literacy. The government has allocated $135 million to AI education programs, including partnerships with Mohamed bin Zayed University of Artificial Intelligence. “Our goal is adaptation, not displacement,” says UAE AI Minister Omar Sultan Al Olama.
AI’s rapid adoption is reshaping hiring strategies. A PwC report estimates 55 per cent of GCC banking roles — particularly in customer service, compliance, and back-office operations — could be automated within a decade. RAKBANK’s AI chatbots now resolve 85 per cent of routine inquiries without human intervention, while Emirates NBD uses machine learning to cut loan approval times by 70 per cent.
Goldman Sachs’ recent deployment of its 'GS AI assistant' for 10,000 employees — tasked with email summarisation, code translation, and document proofreading — mirrors regional trends. “In 3–5 years, AI could blur lines between human and machine roles,” predicts Goldman CIO Marco Argenti. Globally, Bloomberg Intelligence warns 200,000 banking jobs may vanish by 2030, with repetitive tasks at highest risk.
In the GCC, 80 per cent of recruiters anticipate AI-driven workforce shifts, per regional surveys, with 19 per cent expecting over half of HR tasks — like candidate screening — to be automated. “AI won’t replace jobs but transform them. Administrative roles will shrink, freeing professionals for strategic work,” argues Mira Nasser, a UAE-based L&D lead.
Globally, the World Economic Forum projects AI will create 97 million jobs by 2025, including roles in AI training, cybersecurity, and ethical governance — fields the UAE is prioritising. “Skilled workers who embrace AI integration will thrive,” notes economist Omar Fadhel.
McKinsey & Company estimates AI could boost banking productivity by 40 per cent by 2030, with GCC banks already reporting fewer errors in fraud detection and faster credit decisions. “AI slashed our ‘time to decision’ for loans from days to hours,” says Suvo Sarkar, CEO of Dubai-based 3D Advisory.
However, ethical concerns persist. The IMF warns 40 per cent of global jobs face disruption, while biased algorithms and cybersecurity vulnerabilities threaten trust. "AI adoption must be responsible. Regional collaboration on regulation is critical,” urges Dr. Ayman El-Sherbiny of the UN’s Economic and Social Commission for West Asia.
The GCC’s AI transition is irreversible. Open banking frameworks and AI-driven analytics are projected to deliver a $320 billion economic boost to the Middle East by 2030, with the UAE contributing $96 billion. Saudi Arabia expects AI to account for 12 per cent of GDP by 2030, while the IMF forecasts a 35 per cent GDP surge for the UAE.
Yet human skills remain irreplaceable. “AI lacks emotional intelligence and creativity — cornerstones of client relationships and innovation,” says Abu Dhabi HR strategist Shamma Hazza. Hybrid roles blending technical and soft skills are emerging, with demand rising for 'AI translators' who bridge tech and business teams.
The GCC banking sector’s AI journey underscores a universal truth: disruption breeds reinvention. While traditional roles decline, institutions like Emirates NBD and Wio Bank exemplify how strategic reskilling and customer-centric innovation can turn challenges into opportunities. As Sarkar notes, “2025 will separate winners from observers. The future belongs to those merging human ingenuity with AI’s precision.”