As we approach 2025, the financial services landscape in the Middle East—particularly in the United Arab Emirates (UAE) and Saudi Arabia—is undergoing a profound transformation. Banks and financial institutions in these markets are not only keeping pace with global trends but are also setting new benchmarks in digital modernization, with artificial intelligence (AI) at the heart of their strategies for growth and operational efficiency.
While global financial centers like the UK and Australia are prioritizing cost reduction and simplification, banks in the UAE and Saudi Arabia are charting a different course. Here, the focus is squarely on leveraging AI as a catalyst for modernization and business growth. This regional emphasis is evident in the way institutions are moving beyond experimentation to industrial-scale AI adoption, fundamentally reshaping traditional banking practices.
According to Publicis Sapient’s 2024 Global Banking Benchmark Survey, a significant majority of financial institutions in the Middle East are prioritizing AI-driven use cases:
Generative AI, in particular, is seen as a game-changer for risk management and compliance, with 41% of surveyed institutions ranking it as "extremely important" for the next three years. This is a clear signal that Middle Eastern banks are not just adopting AI—they are embedding it into the core of their business models.
Legacy technology has long been a barrier to innovation in financial services. In the Middle East, however, banks are taking bold steps to modernize their core systems. The goal is to create agile, scalable, and secure infrastructures that can support advanced AI applications and deliver seamless customer experiences.
Despite these efforts, only 35% of banks globally report having truly agile systems in place. In the UAE and Saudi Arabia, the modernization agenda is particularly urgent, as institutions seek to:
This transformation is not just about technology—it’s about building the right foundations to unlock the full potential of AI and digital business models.
The regulatory environment in the Middle East is evolving rapidly to keep pace with digital innovation. Financial institutions must navigate a complex landscape of local and international compliance requirements, particularly as they scale AI-driven solutions.
Security and data privacy remain top priorities. Banks are investing in robust guardrails for generative AI, ensuring that new technologies enhance—not compromise—operational resilience and customer trust. The region’s regulators are increasingly focused on:
Institutions that can balance innovation with compliance will be best positioned to lead in this dynamic environment.
Customer expectations in the UAE and Saudi Arabia are distinct and rapidly evolving. The region’s young, digitally savvy population demands hyper-personalized, seamless, and secure banking experiences. Banks are responding by:
Personalization is not just a differentiator—it’s becoming a baseline expectation. At the same time, customers are increasingly aware of data privacy issues, making trust and transparency essential components of any digital strategy.
While the opportunities are immense, Middle Eastern financial institutions face several challenges on their digital transformation journey:
Yet, the region’s commitment to innovation, combined with supportive regulatory initiatives and a strong appetite for digital services, positions the UAE and Saudi Arabia as leaders in the next wave of financial services transformation.
With deep expertise in digital business transformation and a proven track record in the Middle East, Publicis Sapient partners with leading banks and financial institutions to navigate complexity, accelerate modernization, and unlock new sources of value. Our SPEED framework—Strategy, Product, Experience, Engineering, and Data & AI—ensures that every transformation is holistic, future-ready, and tailored to the unique needs of the region.
As 2025 approaches, the UAE and Saudi Arabia stand at the forefront of a new era in financial services. By embracing AI-driven modernization, regional leaders can set new standards for growth, efficiency, and customer-centricity—shaping the future of banking in the Middle East and beyond.