July 22, 2024

Report: UAE and Saudi Firms Aim for AI Dominance Amid Talent Shortages

Last Updated on July 5, 2024 by Saad Farooq

While most Saudi Arabian and UAE companies believe generative AI will transform industries, a recent study by Dell’s Innovation Catalyst Research revealed that shortages of talent and privacy concerns restrict innovation. Below, we explore the report on AI in UAE and Saudi Arabia in more detail.

Factors Influencing The Growth Of AI In UAE And Saudi

According to Dell’s Innovation Catalyst Research, 100% of Saudi Arabian businesses and 95% of UAE businesses expect artificial intelligence will shake up their industries. While 90% believe they have a sound strategy and are well-positioned, around 50% are uncertain about the state of the sector in the future, and almost 80% have trouble keeping up with rapid innovation.

The main challenges are a lack of talent (31 percent in the UAE and 27 percent in KSA), concerns about cybersecurity and privacy (27 percent in UAE and 28 percent in KSA), and insufficient funding (31 percent in both).

SVP for CEEMETA at Dell Technologies, Mohammed Amin, emphasized the importance of integrating generative AI with other innovations to increase productivity and making innovation part of corporate identity to make a statement.

Concerns Over AI Privacy and Data Misuse Persist Despite Optimism

Despite their optimism about the benefits of generative AI, 75% are concerned about new privacy issues, and more than 80% are concerned about data misuse. Most people believe that organizations should bear responsibility for unintended AI behavior—over 90% experienced cybersecurity attacks, with insider threats necessitating additional training.

The study focused on modernizing data infrastructure, favoring on-premise or hybrid AI models, and addressing industry-wide skill shortages, particularly in AI fluency and creativity.


How big is the AI market in UAE?

The artificial intelligence market in the UAE was valued at USD 3.47 billion in 2023 and is expected to grow to USD 5.22 billion by 2024.

How will AI affect the Middle East economy?

According to PWC, AI could bring about over $320 billion to the Middle East; Saudi Arabia would gain $135.2 billion, and the UAE would experience the greatest impact, accounting for 14% of its projected GDP in 2030.

What is the future of artificial intelligence in UAE?

As one of the first countries to adopt AI, the UAE appointed the first AI minister in 2017, established a dedicated AI university in 2020, and introduced the Falcon language model in 2023, making its AI industry among the most developed in the world.

How big is the artificial intelligence market in Saudi Arabia?

At USD 3.11 billion in 2023, the Saudi Arabian artificial intelligence market is expected to grow at a CAGR of 42.6% between 2024 and 2030.

How can AI disrupt the economy?

In about half of the jobs, AI integration could increase productivity; in the other half, essential tasks might be automated, lowering labor demand, hiring, and wages, possibly leading to the elimination of some jobs.

Which AI startups are in Saudi Arabia?

There are around 117 AI startups in Saudi Arabia, including Tabby, Mozn, Lucidya, Marn, and BARQ.

What is the UAE AI Act?

The AI Strategy 2031 lays out eight goals for the UAE to become a hub for AI research and development while fostering an innovative ecosystem.


The pursuit of greater adoption of AI in UAE and Saudi highlights the urgent need to solve talent gaps and privacy problems, which are critical for realizing AI’s full potential in revolutionizing industries.

Saad Farooq

Saad Farooq brings a blend of engineering prowess and a passion for writing to technewsme.com. As a tech engineer based in the vibrant tech landscape of the UAE, Saad has immersed himself in the latest technological advancements, making him an invaluable asset to our team. His deep understanding of tech intricacies comes from hands-on experience in the field, coupled with a genuine love for all things tech.

In his role at technewsme.com, Saad specializes in demystifying complex tech subjects, making them accessible and engaging for our readers. His articles are a reflection of his life in the UAE, a hub of technological innovation, offering a unique perspective on global tech trends and local developments. Whether it’s exploring new tech gadgets, delving into software innovations, or analyzing tech market trends, Saad’s writing is fueled by his extensive engineering background and his enthusiasm for sharing knowledge. Join him on a journey of discovery and insight into the world of technology, right from the heart of the UAE.

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