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FROM PILOTS TO POWER INFRASTRUCTURE: HOW THE GCC IS ENGINEERING THE NEXT PHASE OF AI

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A professional portrait of Farid Yousefi, Founder and CEO of Finder Group Ai, an AI-powered venture builder in Dubai. He is an innovative leader with a distinguished beard and dark hair, dressed in a sharp navy blue suit and a white dress shirt, looking directly at the camera with an authoritative and visionary expression. The background is a clean, modern corporate setting that reflects the sophisticated GCC AI infrastructure and venture capital landscape discussed in the article

By Farid Yousefi, Founder & CEO, Finder Group Ai

Artificial intelligence in the Gulf Cooperation Council (GCC) is entering a decisive new chapter. What began as experimentation, ie, isolated pilots, proof-of-concept chatbots, and innovation lab demos, is rapidly evolving into something far more consequential. In 2026, AI will no longer sit at the periphery of digital transformation strategies. Instead, it will operate as a foundational layer of economic, industrial, and civic infrastructure, embedded into how energy systems run, how governments serve citizens, and how capital flows through the region.

This shift reflects a broader reality: the GCC is no longer merely adopting global AI trends, but actively shaping its own AI paradigm, one that is grounded in sovereign control of data and compute, tuned to Arabic language and local context, and aligned with national visions that prioritize scale, speed, and long-term resilience. The region’s ambition is not incremental improvement, it is to redefine how intelligence itself is designed, governed, and deployed at national scale.

The Maturation of Generative and Agentic AI

By 2026, the most significant leap in AI capability across the GCC will come from the maturation of generative AI and “agentic” AI systems. These technologies move beyond passive analytics or conversational interfaces. Agentic AI can reason, plan, and take actions across complex workflows, effectively acting as a digital operator rather than a static tool.

Crucially for the region, large language models fine-tuned for Arabic dialects and Gulf-specific context are rapidly improving. This has profound implications. Customer-facing AI systems are becoming genuinely fluent, capable of understanding nuance across Modern Standard Arabic, Gulf dialects, and bilingual Arabic-English interactions. Banks can now deploy AI-driven fraud detection and customer support in Arabic without sacrificing accuracy or trust. Governments can offer multilingual virtual assistants that guide citizens through services with clarity and cultural sensitivity.

Beyond language, real-time predictive analytics is reaching operational maturity. In energy and utilities, AI models are being trained to detect early warning signs of equipment failure on oil rigs, pipelines, and power grids. The economic impact is significant: preventing a single unplanned outage can save millions of dollars while improving safety and environmental outcomes.

In logistics and smart cities, multimodal AI, systems that simultaneously process images, sensor data, and text, is transforming operations. Ports are using AI to automate customs paperwork and optimize cargo routing. Cities like Dubai and Riyadh are deploying AI to dynamically manage traffic congestion, monitor infrastructure health, and improve public safety. These capabilities signal a clear transition: AI is no longer an experimental back-office function, but front-line infrastructure, intelligence delivered as a utility.

Redesigning Government and National Infrastructure Around AI

This technological maturation is reshaping how GCC governments think about digital services and national-scale infrastructure. Traditional e-government portals, static, form-based, and siloed, are giving way to AI-powered concierge models. Instead of navigating multiple platforms, citizens increasingly interact with a single intelligent agent.

Imagine a system that can visually review submitted documents, understand a request in natural language, and execute transactions across multiple departments in one seamless interaction. This is not a distant vision. Across the GCC, ministries are already using generative AI to automate administrative tasks, summarize regulations, and simulate policy outcomes. These early deployments foreshadow a future where agent-based systems anticipate needs and act proactively.

Mega-projects and smart city initiatives are embedding AI from inception rather than retrofitting it later. With dense networks of IoT sensors feeding real-time data, cities such as NEOM, Riyadh, and Dubai are building AI “control layers” that continuously monitor traffic, energy consumption, water usage, and security. Agent-based systems can then coordinate responses, rerouting vehicles, balancing power loads, or flagging anomalies, without waiting for human intervention.

The result is self-optimizing infrastructure. Humans remain responsible for strategy, ethics, and oversight, while AI executes decisions at machine speed. This represents a fundamental shift in governance and urban management: designing for intelligence at scale rather than manual supervision.

Sovereign Compute: The Backbone of GCC AI Ambitions

None of this transformation is possible without a parallel revolution in AI infrastructure. The GCC’s aspiration to become a global AI hub hinges on sovereign compute capacity – control over the data centers, chips, and energy that power advanced AI models.

Over the past two years alone, sovereign wealth funds across the region have mobilized more than $100 billion toward AI infrastructure. This scale of investment is unprecedented, outpacing even Europe. Landmark initiatives such as Abu Dhabi’s Stargate project, a multi-gigawatt data center campus designed to host and train large AI models on local data, and Saudi Arabia’s plans for up to 6 gigawatts of AI data centers under its HUMAIN initiative exemplify this ambition.

The region enjoys a structural advantage in this race: energy. Power costs in the Gulf are less than half those in many European markets, providing a natural edge in the energy-intensive process of training large models. At the same time, operators are innovating to address environmental and climatic challenges. Advanced cooling technologies, including liquid immersion cooling, are being deployed to operate efficiently in summer temperatures exceeding 45°C. Renewable energy integration is also increasing, aligning AI growth with sustainability goals.

Equally important is sovereign control over hardware. GCC nations are investing in local chip design programs and forging strategic partnerships to secure access to cutting-edge AI processors. In an era of global supply-chain uncertainty, this control over compute is becoming as strategically important as control over oil reserves once was. The region is effectively converting its natural advantages of capital and energy into a durable compute advantage for the AI age.

Where ROI Is Materializing First

From an investment standpoint, the strongest returns in the GCC are emerging where AI delivers direct, measurable impact. Predictive maintenance in energy and utilities is a prime example. AI systems that prevent equipment failures or optimize drilling operations offer immediate cost savings and operational resilience. Unsurprisingly, pilots in oil and gas—such as AI models analyzing drilling plans—are rapidly scaling into production environments.

In financial services, AI-driven fraud detection, risk scoring, and KYC automation are moving from experimentation to enterprise-wide deployment. Banks across the region have demonstrated that these systems reduce losses, improve compliance, and significantly speed up customer onboarding. Customer service automation is also reaching maturity. Telecom operators, airlines, and government agencies that once piloted Arabic-language chatbots are now preparing to replace tier-one support entirely with AI agents, improving availability while lowering costs.

Logistics represents another high-ROI frontier. Gulf ports and free zones are scaling AI solutions that automate documentation, optimize cargo flows, and reduce bottlenecks. Successful trials have shown faster throughput and improved competitiveness—critical advantages for economies positioning themselves as global trade hubs.

The common thread is pragmatism. Investors and enterprises are increasingly prioritizing AI that solves real problems and delivers returns per dollar invested. The era of AI experimentation without clear outcomes is giving way to disciplined scaling of proven use cases.

Regulation as an Accelerator, Not a Constraint

As AI adoption accelerates, governance has become a central pillar of the GCC’s strategy. National AI frameworks in the UAE, Saudi Arabia, and Qatar are establishing trust-first guardrails focused on transparency, accountability, and human oversight. These policies are not designed to slow innovation, but to ensure it scales safely.

Saudi Arabia’s guidelines, for example, mandate human oversight for public-sector AI and require transparency measures such as watermarking AI-generated content. Qatar’s central bank has introduced governance rules requiring audits and human review for high-stakes algorithms. These frameworks inevitably influence data flows, encouraging sensitive information to remain within national borders.

While this localization may initially limit free cross-border data movement, it is simultaneously fueling massive investment in regional cloud and data center infrastructure. Over time, regulatory alignment across the GCC, particularly around shared principles of fairness, accountability, and transparency, will enable AI solutions certified in one country to scale regionally. Clear rules reduce uncertainty, giving enterprises and investors confidence to deploy AI at scale.

The Hidden Risks of Autonomous AI

Despite the momentum, risks remain, and some are underestimated. One of the most significant is overconfidence in AI accuracy. Even advanced models can hallucinate or fail, particularly when dealing with local dialects or sparse data. In high-stakes sectors such as security, healthcare, or law enforcement, such errors can have serious consequences. Human oversight is therefore not optional, regardless of how autonomous a system becomes.

Operational fragility is another concern. Many organizations overlook infrastructure dependencies, such as reliance on imported GPUs or insufficient cooling and backup power for data centers. In the Gulf’s climate, these vulnerabilities can quickly become systemic risks. Cybersecurity also takes on new dimensions as AI systems gain autonomy, expanding the attack surface for malicious actors. A compromised AI traffic system or a convincing deepfake could undermine public trust overnight.

Finally, reputational and regulatory backlash remains a risk if AI is misused or deployed without adequate safeguards. A single incident involving biased decision-making or a privacy breach could slow adoption across entire sectors. Rigorous testing, transparency, and fail-safes, the unglamorous aspects of AI, are essential for sustainable progress.

Who Will Lead the GCC AI Race?

By 2026, leadership in the GCC AI landscape will be shaped by a combination of talent, data, sovereign strategy, and investment appetite. The UAE and Saudi Arabia are poised to lead, each leveraging distinct strengths. The UAE’s early-mover advantage, world-class institutions such as MBZUAI, and deep integration of AI into daily life have positioned it as a global reference point for adoption. Saudi Arabia, meanwhile, brings unmatched scale, capital, and data assets particularly in energy, making it the region’s AI infrastructure powerhouse.

Other GCC nations will lead in targeted ways. Qatar is emerging as a center for ethical AI and safe deployment, Bahrain as a pioneer in cloud-first government integration, and Oman as a steady builder of digital infrastructure and local talent pipelines. Across industries, government services will continue to drive adoption, while energy and finance lead commercially.

From Oil Wells to “Intel Wells”

Ultimately, the GCC’s AI journey is about more than technology, it’s about redefining economic value creation. The region is moving from oil wells to “intel wells,” treating data and insight as the new strategic resource. At Finder Group AI, our mission is to connect the region’s abundant capital with its brightest innovators responsibly, transparently, and at scale.

By 2026, the global conversation will shift from AI hype to AI habitat. The Gulf will not just be adopting AI, but exporting a new standard, one that balances cutting-edge innovation with trust, governance, and purpose. The rise of the GCC as an AI hub will create opportunities far beyond its borders, shaping the next phase of the global AI economy on the region’s own terms.

-Ends-

About the Author:

Farid Yousefi is a serial entrepreneur and innovator leading the development of Finder Group Ai, an AI-powered venture builder ecosystem based in Dubai. With a strong background in strategy, business development, and technology adoption, his focus is on helping ideas transform into scalable businesses through AI-driven solutions.

His work spans across building and mentoring startups, forging partnerships, and guiding ventures from ideation to growth. He is passionate about creating impact through technology, developing sustainable ecosystems, and supporting founders on their journey through in-depth technical and industry knowledge and expertise and access to a global network of venture capitalists and angel investors to attract investment, and through partnerships at the highest level within government to aid integration and scale rapidly within local territories.

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AI INNOVATION IN HEARING CARE MUST ACCELERATE AS 2.5 BILLION COULD FACE HEARING LOSS BY 2050

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A professional corporate headshot of Giscard Bechara, Regional Director for Middle East & Africa at Starkey Laboratories Inc. He is presented in a modern, well-lit setting, wearing a tailored suit that reflects his leadership role in driving AI-enabled hearing innovation across the MEA region.

With nearly 2.5 billion people projected to have some degree of hearing loss by 2050 as per World Health Organization, Starkey MEA is calling for faster adoption of AI-enabled hearing innovation that delivers practical, measurable improvement for patients in real-world environments.

AI is reshaping what hearing aids are expected to do. The category is moving beyond basic amplification toward systems that can interpret complex soundscapes, prioritise speech, and personalise output moment by moment—especially in noise, multi-speaker settings, and fast-changing environments. Starkey says this shift demands on-device intelligence that is fast, power-efficient, and clinically meaningful, rather than “AI” that lives mainly in marketing language.

“Talking about AI is easy. Delivering AI that makes hearing clearer when life is noisy, and that does it reliably all day, is the real standard,” said Giscard Bechara, Regional Director, Middle East & Africa, Starkey MEA. “With the scale of hearing loss projected globally, innovation can’t crawl. In MEA, our focus is to bring on-device intelligence that adapts in real time to the person and the environment—because that is what patients actually feel. We will also be introducing a new AI-driven hearing solution in the region soon, and we look forward to sharing what this next step means for hearing professionals and the communities they serve across the Middle East and Africa.”

As part of a wider drive to promote hearing health awareness across the Middle East, Starkey MEA has highlighted how AI-led hearing technology can be engineered to mirror the way the brain processes sound. In regional communications around its latest platform direction, Starkey has stated that its AI-based processing can make up to 80 million personalised adjustments per hour, with the intent of helping wearers stay comfortable and connected across different listening situations.

Starkey’s progress in AI processing has been built over multiple technology generations. In earlier platform disclosures, the company described its Neuro Processor architecture as delivering six times more transistors, ten times more memory, and up to four times faster processing than the prior generation—advances designed to support higher-speed analysis and optimisation without compromising everyday usability.

Starkey had introduced Edge AI featuring the G2 Neuro Processor, which the company describes as incorporating a Neural Processing Unit (NPU) with deep neural network (DNN) processing capabilities, and as being engineered for strong performance while maintaining “industry-leading battery life.” Starkey also claims the G2 includes the “industry’s only NPU fully integrated into the chip.”

In parallel, Starkey continues to frame hearing technology as a platform that can support aspects of health and safety, alongside hearing performance. The company has announced hearing aids with built-in balance assessment and has linked this to fall-risk screening frameworks, including referencing the CDC’s STEADI initiative, as well as ongoing work validating balance assessment approaches with external research partners.

Starkey MEA continues to work with hearing care professionals across the region to support patient awareness, strengthen hearing health conversations, and accelerate access to next-generation AI-enabled hearing solutions as they become available in-market.

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GLOBAL RETAIL INNOVATION STEPS INTO SMARTER PHASE DRIVEN BY AI AND AUTOMATION

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Based on your feature article about AI and automation in retail, here is a precise ALT text description for your WordPress post. This description is designed to be highly descriptive for accessibility while reinforcing your focus on "Smarter Retail" and AI technology. ALT Text Description "A futuristic smart retail store interior featuring AI-powered aisles where overhead sensors and computer vision cameras track inventory in real-time. A shopper is seen using a smart cart with an integrated touchscreen displaying a live tally of items and personalized digital coupons, illustrating the seamless fusion of automation and data-driven shopping experiences in the global retail sector.

Retail stores and supermarkets are now in the midst of an innovative transformation. Spaces that once used to be defined by stocked shelves and friendly sales associates are now experiencing the ripples of the accelerated digital transformation. Artificial intelligence (AI), automation and data-driven insights are paving the way for smart stores which, on one hand, offer shoppers personalised experiences, while on the other hand, help retailers better understand evolving customer behaviour.

Global trends show how food retailers are also piloting AI-first experiences that match personalisation and ease of eCommerce platforms. By integrating advanced features such as AI sensors, smart carts, autonomous checkout counters and real-time inventory engines, retailers are offering efficient, fast and hassle-free shopping. This shift also gives retailers the benefit of higher conversion and lower operating costs.

As technologies like AI continue to evolve, retailers are leveraging them to optimise pricing, predict consumer behaviour and enhance in-store experiences to create a dynamic retail environment internationally. Current trends indicate a shift towards AI-powered automation in supply chain management, augmented reality for enhanced shopping experiences, and AI-driven marketing strategies which will be discussed at Gulfood 2026, the largest global food show in depth.

Speaking of the United Arab Emirates (UAE), the Artificial Intelligence in Retail market report stated the nation is projected to grow from USD 16.82 million in 2023 to USD 157.86 million in 2032, with a compound annual growth rate (CAGR) of 28.21 per cent. The UAE’s grocery market is also expanding rapidly, projected to reach USD 38.6 million by 2025 at a compound annual growth rate (CAGR) of 5.7 per cent through 2029, with online sales accounting for 15 per cent of total sales. Likewise, Saudi Arabia’s online grocery sector was valued at USD 1.54 billion in 2024 and is expected to expand further, with a projected CAGR of 15.9 per cent through 2033.

Government initiatives to promote AI integration

The UAE government strives to capitalise on this positive market landscape by fostering a favourable environment for AI deployment and integration. Initiatives such as the UAE National Artificial Intelligence Strategy 2031 aims to boost government performance and create new markets with high economic value by 2031, thereby positioning the country as a global hub for AI innovations. In line with this, the UAE government is encouraging retail businesses to integrate AI technologies into their operations.

Similarly, the UAE continues to host major global and regional events that accelerate the transformation of the retail sector and showcase the future of tech-enabled commerce. For instance, Gulfood 2026, the world’s largest annual food show, which is being held in Dubai, from January 26 to January 30 will showcase a wide array of innovations happening in the food retail sector. By convening global F&B leaders and decision-makers, including CEOs, heads of state, trade officials, investors, academics, scientists, tech innovators and more under one roof, it will set the ideal stage to lead open discussions and exchange ideas on the possibilities of AI integration and digital transformation in food retail.

Predictive Analytics and Demand Forecasting with AI

The growing momentum of technological innovations is further highlighted by increased use of AI-powered predictive analytics in the country’s retail market. Businesses are now leveraging data to forecast customer demand and optimise inventory management. AI-algorithms that accurately predict purchasing patterns, help retailers retain optimal stock levels, reduce waste and reinforce supply chain efficiency. It also helps retailers design engaging promotional campaigns, refine customer engagement strategies and align their stocks with seasonal trends. This aspect of predictive analytics is beneficial in the UAE’s rapidly evolving retail market, where demand fluctuations can be unpredictable and competitive pressures are high.

The country’s growing focus on AI-powered retail innovations is already being translated into real-world examples. Fully automated stores, such as Carrefour’s Dubai pilot, have proven that AI-powered retail is more than just a concept. These stores demonstrate how automation can improve efficiency, though they can also pose several challenges related to error resolution and data privacy.

Looking ahead, retailers that continue to embrace innovation are projected to unlock new market possibilities. The integration of AI will help refine everything from product selections and store operations to marketing campaigns, helping business leaders make informed decisions. Meanwhile, from a shopper’s perspective, the combination of advanced edge computing and digital signage can offer a personalised shopping experience. The integration of AI will also improve visual search capabilities, helping consumers to find items on retail websites simply with a picture of the item.

As the region’s retail sector continues to leverage AI’s vast possibilities, the key to success of these efforts lies in balancing innovations with customer centricity. The insights shared at Al-Futtaim’s AI in Retail Roundtable [3] offer a clear roadmap for GCC retailers to harness AI responsibly and effectively. In order to localise the experience, brands must design AI solutions that respect the region’s cultural diversity while meeting the expectations of an evolving customer base. Another key point highlighted during the roundtable is humanising the digital experience to ensure that technology strengthens emotional connections rather than replacing them. Retailers should also focus on seamless personalisation across channels, linking online and offline journeys into one unified experience.

Above all, the key to guaranteeing the success of this transformation is transparency and trust. By seeking consent and clearly communicating how data boosts customers’ convenience, retailers can build loyalty that lasts well beyond the transaction.

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HOW GCC OPERATORS CAN LEAD THE NEXT AI WAVE WITH FUTURE-PROOF OPTICAL NETWORKS

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A professional corporate headshot of Pete Hall, Regional Managing Director for Ciena Middle East & Africa, who provides expert insights on how GCC operators can lead the next AI wave through future-proof optical networks

By Pete Hall, Regional Managing Director, Ciena Middle East & Africa

Artificial Intelligence (AI) is advancing at a rapid pace in the region, driving innovation across various industries. The GCC now stands at a pivotal moment, with AI transitioning from a hyperscaler-centric phenomenon to a ubiquitous force shaping enterprise and consumer networks alike.

Globally, Amazon Web Services (AWS), Google Cloud, Microsoft Azure and NVIDIA have stepped in to manage large-scale computing and data processing needs. Unlike traditional data centers, they are built to meet evolving workloads without major infrastructure changes.

The rapid expansion of data centres to meet soaring demand is also evident in the UAE, where du announced a deal with Microsoft to set up a data centre in the country to revolutionize the digital ecosystem. Next door, Saudi Arabia has been expanding its investments in data centres to drive its wider ambitions to become a regional AI leader and global tech hub.

While much of the AI optics boom has so far been confined to data center interconnects, growth is now shifting from AI model training to AI inferencing, where AI models can make accurate predictions based on new data. However, it takes data-intensive AI training to make this a reality.

As new AI applications such as AI-powered analytics, immersive media, and automation are expected to surge through 2030, the next wave will demand robust, low-latency, high-capacity optical transport across metro and long-haul networks.

In particular, GCC markets are primed to experience rapid uptake due to national AI agendas and smart city initiatives. A 2025 survey shows AI traffic could account for 30–50% of metro and long-haul capacity within three years. It is interesting to note that enterprises, not hyperscalers, are expected to drive the most network traffic growth over this period.

As the AI traffic boom moves beyond the data centre, low latency, high capacity, and resilient optical links will be the key differentiators for AI-driven workloads. This is precisely where regional telcos can take the lead. The market for capacity is already evolving quite rapidly.

Earlier this year, e& UAE became the first in the Middle East and Africa to deploy Ciena’s WaveLogic 6 Extreme, achieving ultra-high-speed 1.6 Tb/s per wavelength connectivity. This advancement supports 10 Gb home services and wholesale and domestic business customer traffic with 100G and 400G requirement.

The GCC’s investment in high-capacity optical networks, powered by new innovations such as WaveLogic 6, provides a competitive advantage in meeting the increasing AI traffic demands. If they are to take this to the next level, GCC telcos must capitalize on their relatively greenfield networks to deploy future-proof optical infrastructures faster than more mature markets constrained by legacy systems.

GCC operators are charting a new course as AI enablers, leveraging managed optical fiber networks and AI-optimized SLAs to deliver greater value and innovation beyond traditional bandwidth services.

To accelerate this journey and speed time to market, operators are also taking steps to address capex constraints, skill gaps, and organizational alignment. By positioning themselves as AI ecosystem leaders, they can unlock long-term revenue and resilience.

There is a real window of opportunity for GCC operators to capitalise on the AI optical wave. Thanks to national AI strategies, sovereign cloud initiatives, and hyperscaler partnerships, they already have a head start. By continuing to invest in future-proof, high-capacity, low-latency optical networks they can ensure network readiness for AI’s exponential traffic growth. The next three years will determine whether GCC operators shape the AI economy or chase it.

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