Middle East’s Top Technology Trends of 2025

By Stephen Gill, Academic Head of School of Mathematical and Computer Sciences, Heriot-Watt University Dubai
With an increased reliance on a sophisticated digital ecosystem, the Middle East is poised to witness an unprecedented surge in technological advancements. From finance and healthcare to energy and retail, several sectors and industries are set to undergo a profound transformation, driven by the rapid acceleration of digital innovation. In this article, Stephen Gill, Academic Head of the School of Mathematical and Computer Sciences at Heriot-Watt University Dubai, explores the top technological trends that will dominate the region in 2025. Artificial Intelligence (AI) and Machine Learning (ML)- Two of the biggest trends of the decade in the Middle East are AI and ML. AI could add an incredible $320 billion to the region’s GDP as forecasted by PwC. It is anticipated that payment systems will incorporate AI technologies by 2025.

Artificial Intelligence (AI) and Machine Learning (ML)

Two of the biggest trends of the decade in the Middle East are AI and ML. AI could add an incredible $320 billion to the region’s GDP as forecasted by PwC. It is anticipated that payment systems will incorporate AI technologies by 2025 to provide better experience to customers, enable growth in operational efficiency and lower costs.
In areas like healthcare, AI-powered analytics are predicting outcomes and reducing risks. For instance, Saudi Arabia’s Vision 2030 initiatives are leveraging AI for advanced health screenings, remote patient monitoring and personalised medicine. Businesses are also adopting such technology to enhance logistics and supply chain operations to enhance competitive edge in the rapidly growing market.

5g Connectivity:
2025 seems to hold bright prospects for MENA’s 5G network sector. This would lead to significantly better rates of connectivity. There will be a significant proportion, as high as 50% of mobile subscribers in the region using 5G networks, according to GSMA Mobile Economy MENA 2023 report. A minimum of 33% of the subscribers would rely on 4G networks while the remaining 17% would have 2G and 3G networks. With this widescale advancement of technology, autonomous machines and smart cities would get a much-needed boost. Its ultra-fast nature will ensure that remote working, education or telemedicine reach mainstream level for the region. Virtual experiences will become low latency and effortless. Other industries to benefit from 5G-enabled automation will be manufacturing, oil, and gas, which will optimise operations and improve the safety standards.

Internet of Things (IOT) And Smart Cities
Thanks to the early adoption of IoT technology in the MENA region, Smart Cities have become a reality. For instance, the UAE’s Smart Dubai initiative has led to significant strides and transformed Dubai into one of the Smart Cities of the world. It is expected that by 2025, IoT will embed in all aspects of urban infrastructure, transport, utilities, and security to waste management.
Saudi Arabia’s $500 billion NEOM project represents a bold vision to develop a model smart city incorporating IoT and AI features. All these indicators are part of a bigger regional trend towards digital and sustainable development, where smart grids, smart traffic systems, and smart buildings allow resources to be used together more efficiently with lesser environmental impact. According to IOT Analytics, the connected IoT devices are estimated to grow by 13% in the last quarter of 2024, with MENA countries increasingly stressing on the use of IoT to enhance living standards and urban services.

Blockchain and Cryptocurrency
The World Economic Forum states that blockchain technology is being adopted across all the industries in the region. As per UAE’s Emirates Blockchain Strategy 2021, 50% of all government transactions are conducted on blockchain. In countries like Saudi Arabia and Bahrain, the technology is being used for financial services, trade logistics and digital identity. Central banks are also turning to ways to use digital currencies for international payments. This has also led to a rise in the use of central bank digital currencies (CBDCs).

Cyber Security and Data Privacy
Rapid use of technology has led to growing concerns around data security and safe data collection. Moreover, numerous cases of data leaks, phishing, and ransomware are also being reported. A report by Ventures also states that the total cost of cybercrime to the global economy could reach upto $10.5 trillion by 2025. Many countries in the MENA region have adopted robust cybersecurity measures. For instance, the UAE’s National Cybersecurity Strategy and Saudi Arabia Vision 2030 have enhanced AI threat detection and implemented zero-trust architecture.

Augmented and Virtual Reality (AR and VR)
The market value of AR and VR is projected to be worth $45 billion by 2029. The MENA countries are projected to be a major contributor to the global AR & VR market growth, which is anticipated to be a compound annual growth rate (CAGR) of 8.97% between the period 2024 and 2029. In the retail sector, customers are getting new experiences like virtual shopping and product customisation. In education, immersive experiences are enhancing learning by allowing them to perform and conduct vivid and dynamic simulations. For example, the Saudi Arabia’s Ministry of Education has rolled out virtual science labs in schools to enhance learning experiences for students.

Quantum Computing
There’s some progress in exploring the applications of quantum computing in the Middle East, although this technology remains in its early days of adoption internationally. Countries like the UAE are committing to research and joint collaboration efforts to see the industry expand into the Gulf. An increase in investment is expected in quantum computing, specifically in encryption techniques, data and AI management.
There are greater opportunities in quantum cybersecurity, quantum key distribution, and quantum machine learning. Furthermore, as the MENA region continues to encourage the adoption of digitalisation, quantum computing might also be a source of competitive advantage and aid the region achieve economic diversification.

Conclusion
In the years to come, specifically in 2025, the Middle East will witness several changes due to the integration of digital technology and economic growth. AI and green technologies point to the region’s commitment to digitalisation and sustainability. The youth in the region are exploring technology and industry investment opportunities, further backed by government initiatives, making the Middle East a potential global technological hub. As these technologies continue to evolve, they will reshape the future of the MENA region, offering solutions to existing problems and creating new opportunities.