Boston Consulting Group (BCG) announced the launch of its new report, “AI Data Centers: An Opportunity in the Middle East”, during the sidelines of MWC Doha 2025, revealing that the Middle East is rapidly positioning the region as a rising global nexus for AI data center investment and innovation. As global demand for AI infrastructure accelerates, with data center power needs projected to grow from 86GW in 2025 to 198GW by 2030, BCG finds that the Middle East has a uniquely competitive advantage in supplying scalable, cost-efficient AI compute capacity.

Middle East: A Critical New Hub of AI Data Center Investment

BCG’s report highlights that the Middle East is not merely participating in the global AI infrastructure race; it is fast emerging as a critical new hub of AI data center development. The region benefits from distinctive structural advantages. Its strategic geography places it within a 2,000-mile radius of over 3 billion people, enabling it to serve Europe, Asia, Africa, and the Global South with non-latency-sensitive AI inferencing at scale.

Thibault Werle, Managing Director & Partner, BCG

Competitive cost structures, including up to 50% lower leasing rates, low power tariffs, and advanced cooling systems adopted by regional operators, significantly reduce the total cost of ownership. Meanwhile, markets such as the UAE and Saudi Arabia continue to accelerate time-to-market for new data centers through fast-track development, dedicated investment teams, and special economic zone clusters such as Masdar City’s Stargate Campus. This momentum is reinforced by the region’s expansive land availability, scalable power ecosystems, and the planned ~720 Tbps Fibre in the Gulf (FIG) submarine cable project.

Harold Haddad, Managing Director & Senior Partner BCG

Thibault Werlé, Managing Director and Partner at Boston Consulting Group (BCG), said: “The Middle East is undergoing a pivotal transformation as it positions itself to become a global hub for AI infrastructure. With strategic investments, progressive digital policies, and ambitious national visions across Qatar, the UAE, and Saudi Arabia, the region is building the foundation for scalable, next-generation AI compute. Qatar’s ongoing initiatives, showcased during MWC Doha, reflect the broader regional commitment to shaping a competitive and globally relevant AI ecosystem that can serve markets across Europe, Asia, Africa, and the Global South.”

Country Momentum Across the Region

The report outlines major national initiatives shaping the Middle East’s AI infrastructure landscape. Saudi Arabia has launched HUMAIN with a targeted 1.9GW AI data center capacity, along with partnerships with NVIDIA, AMD, AWS, DataVolt, and Groq to develop multi-hundred-megawatt AI campuses, including the world’s largest AI compute center. The UAE is advancing a 5GW AI campus in Abu Dhabi under the US-UAE AI Acceleration Partnership and is importing 500,000 GPUs for regional and US partners, supported by Microsoft’s USD $15.2 billion AI and cloud infrastructure investment. Qatar’s strategic investments complement these national efforts and reinforce a GCC-wide push toward establishing a global AI compute corridor.

Qatar Leading Regional Momentum

Qatar is steadily strengthening its position as a competitive player in the global AI and technology race, supported by strategic investments from the Qatar Investment Authority (QIA). These include the establishment of a USD $3 billion global platform with Blue Owl Capital to accelerate international AI and cloud infrastructure expansion, as well as QIA’s participation in Anthropic’s USD $13 billion funding round. These initiatives underscore Qatar’s commitment to advancing its digital capabilities and align closely with the ambitions of the Qatar Digital Vision 2030.

MWC Doha serves as a testament to the country’s growing role in shaping the regional technology landscape, reflecting Qatar’s intent to contribute meaningfully to the Middle East’s emerging AI infrastructure ecosystem.

Reflecting on BCG’s participation at MWC Doha, Harold Haddad, Managing Director and Senior Partner noted: “Qatar’s digital ambition is rapidly taking shape, driven by decisive leadership and a deep commitment to innovation. In line with Qatar National Vision 2030 and Qatar’s Third National Development Strategy, the country is harnessing AI and emerging technologies to cement its role as a competitive force in the global digital economy. Hosting Mobile World Congress Doha reflects this momentum and Qatar’s growing influence as a pivotal hub for technological advancement. At BCG, we are proud to contribute to this journey, partnering across sectors to help build the digital foundations of the future economy.”

Recommendations for Middle Eastern Governments

To fully unlock the region’s potential, BCG recommends that governments create streamlined, unified investment packages that integrate key inputs such as land, power, water, and connectivity within clear, time-bound frameworks. Expanding a diverse ecosystem of business and financing models including hyperscalers, GPU-as-a-Service providers, equity platforms, and bond-backed investments will be critical to enabling flexibility for market entrants. The report also emphasizes the importance of strengthening partnerships across chipset suppliers, research institutions, and component manufacturers to accelerate innovation across the AI data center value chain. Developing and retaining world-class digital and AI talent remains a central requirement for long-term competitiveness, capacity building, and sustained innovation.

As AI continues to reshape economic landscapes, data centers form the critical backbone of global technological leadership. With its strategic geography, favorable economics, and ambitious national digital agendas, the Middle East is uniquely poised to emerge as a global AI data center powerhouse—particularly for regions requiring scalable and cost-efficient AI compute such as the Global South.

2022 may be the best year since the pandemic, with almost half of the residents surveyed having received a bonus and over 5% of residents saying their bonus was valued at over Dhs50,000. The study revealed that 31% of residents received a bonus of up to Dhs20,000 and 12% of up to Dhs50,000.

According to the survey, the top priorities among most UAE residents when utilizing their bonus include investing in property (24%), saving for retirement (17.6%), paying off debts (15%), and saving for their children’s education (14%). Other investment choices, such as funds investment (13%) and life insurance (11%) were also seriously considered viable options by residents.

This indicates that more residents are increasingly making sustainable and secure investment choices rather than spending on luxury items and travel.

“It is encouraging to see that most UAE residents now feel an increased responsibility for their financial well-being. Our survey shows that most residents are adopting a long-term perspective when planning how to utilize their annual bonuses. To secure their financial future, they will need expert financial advice to allocate their funds wisely, e.g., saving for their retirement, future property investment, children’s education or life insurance,” said Taru Singhal, Head of IFA Distribution, Zurich in the Middle East.

Protecting and investing in the future

With securing their children’s education prominently featuring in the investment list for UAE residents, it was interesting to see that 42% of those aged between 18 to 24 were largely enthusiastic about securing a decent retirement life, while 22% of those aged 45 years and above said investing in life insurance was a top priority.

Investing in property (24.7%), saving for retirement (17.4%), and saving for children’s education (14.8%) also topped the priority list for Asians in the UAE. In comparison, property (21%), paying off debt (19.2%), and saving for retirement (18.8%) ranked top for Emiratis and Arab expats respectively.

Residents can safely secure and sustainably achieve their financial well-being goals with such investments. This, according to Zurich, is a delayed gratification strategy that can set them on a secure path to a bright future.
“Having been a beneficiary of expert financial advice as well as having enrolled in several investment plans, including an educational plan and a pension scheme, my advice to other residents is to start planning for their future by investing the right way and with the right partner,” said Cindy Simbulan, resident of the UAE for the last 15 years.
The survey also sought the motivating factors influencing the UAE residents’ choice to use bonuses. It found that their family and friends influenced 75% of the respondents. In comparison, employer and market trends also played a significant role at 22%. Other factors included peer influence (18%) and recommendations by a financial advisor (13%).

The report, titled ‘Banking as a Service: at the Heart of the Bank of Tomorrow’ outlines the many signs that BaaS is being adopted by small and midsize banks operating at subscale and, as more do, this segment of the market will grow at a compound annual growth rate (CAGR) of approximately 25%. That would mean that, by 2026, revenues in the region from BaaS could stand at $5 billion or approximately 4% of the total banking income in the Middle East.

“Banking as a service enables banks and non-banks to offer a host of completely new financial products to their end-customers. Without having to commit the time and resources to developing all offerings in-house, BaaS-using banks can cut time-to-market of new products by as much as ten times. So, BaaS has a crucial role to play in enabling traditional banks held back by legacy IT to reinvent themselves with a more competitive offering,” said Philippe de Backer, Managing Partner and Global Financial Services Lead at Arthur D. Little

The BaaS potential

Following this expansion, a secondary growth spurt is likely driven by the arrival of larger incumbent banks that have concluded that to remain competitive they, too, need to use BaaS solutions. BaaS revenues should reach $28 billion by 2031, which would amount to about 17% of total banking income in the Middle East. Developed alongside a bank’s core business, BaaS becomes a solid platform from which it can start to rebuild lackluster market valuations, pleasing investors as a result. At the center of the initial growth will be payments and accounts since these products can be most easily embedded. This will likely be followed by movement into consumer lending, as products such as “buy now, pay later” gain more traction.

Implementing BaaS

With the premise that BaaS will determine the future of banking, the uniqueness of incumbent banks means that each must carefully evaluate whether it would benefit from BaaS — either as a user or a provider — and identify any potential obstacles that might affect implementation.

Some incumbent banks may be hesitant about using BaaS because of concerns about the service robustness of a third-party provider or a loss of independence. For instance, it might be contractually difficult to add new features to a product or to discontinue it. They may also be required to share fees with a technology provider. However, such concerns are often overstated and are far outweighed by the benefits that come from being able to focus on core capabilities — front office and the management of balance sheet and risk management — because responsibility for non-core areas has been passed to the most competent provider.

“In terms of market positioning, there are two routes to BaaS success. The first is for a bank to become a global specialist that focuses on high-quality delivery of a narrow range of products and services. The second route is for a bank to turn into a full-scale regional provider with a banking license, able to offer a full spectrum of BaaS products across a restricted geography. We see the latter already gaining rapid traction in the Middle East especially,” said Nael Amin, Senior Manager, Financial Services Practice, Arthur D. Little Middle East.

A Mimecast ESRA helps participating organizations better understand the number and type of email-borne threats that are getting through their current defences. As part of the cumulative assessments, Mimecast has inspected more than 142 million emails that have passed through organizations’ incumbent email security vendors. Latest results revealed 203,000 malicious links within 10,072,682 emails were deemed safe by other security systems – a ratio of one unstopped malicious link for every 50 emails inspected.

The report also found an 80% increase impersonation attacks in comparison to last quarters’ report with 41,605 caught. Additionally, 19,086,877 pieces of spam, 13,176 emails containing dangerous file types, and 15,656 malware attachments were all missed by these incumbent providers and delivered to users’ inboxes.

“Targeted malware, heavily socially-engineered impersonation attacks, and phishing threats are still reaching employee inboxes. This leaves organizations at risk of a data breach and financial loss,” said Matthew Gardiner, cybersecurity strategist at Mimecast. “Our latest quarterly analysis saw a continued attacker focus on impersonation attacks quarter-on-quarter. These are difficult attacks to identify without specialized security capabilities, and this testing shows that commonly used systems aren’t doing a good job catching them.”

The report indicates the need for organizations to enhance their cyber resilience strategies for email with a multi-layered approach that includes a third-party service provider. This new ESRA report follows an SE Labs Independent Email Security Services Protection group test, which gave Mimecast the top score and a “AAA” rating. Other email security services SE Labs evaluated were from Microsoft, Forcepoint, Symantec and Proofpoint.

“The SE Labs report highlights the need for multiple layers of protection to increase security efficacy and to address the rise of more advanced email attacks,” added Gardiner.

Mimecast is engineered to use multiple layers and types of detection engines, combined with high performance analytics and a diverse set of threat intelligence sources, overseen by the Mimecast SOC. This helps protect email data and employees from malware, spam, phishing, and targeted attacks – 100% from the cloud.