As per MRFR analysis, the GCC Applied AI Market Size was estimated at 2.23 (USD Billion) in 2023.The GCC Applied AI Market is expected to grow from 4.48(USD Billion) in 2024 to 10.55 (USD Billion) by 2035. The GCC Applied AI Market CAGR (growth rate) is expected to be around 8.098% during the forecast period (2025 - 2035)
Key GCC Applied AI Market Trends Highlighted
The market for applied AI is expanding significantly in the GCC due to a rise in government efforts and technological investments. As part of their national plans, such as the UAE's Vision 2021 and Saudi Arabia's Vision 2030, the governments of the GCC nations are giving digital transformation top priority.
These strategic plans underscore the dedication to innovation and economic diversification by emphasising the integration of AI into a number of industries, such as healthcare, finance, and transportation.
One major market factor that is speeding up the deployment of AI technologies is the quest for smart cities and improved public services. Furthermore, the GCC Applied AI industry offers significant prospects for investigation.
Companies may gain a competitive edge by utilising AI to boost consumer experiences and operational efficiency. With the help of regional technology parks and incubators, which promote an entrepreneurial atmosphere, startups specialising in AI solutions are progressively coming to life.
Additionally, government agencies and private sector businesses are working together more frequently, which is facilitating the development of AI applications and creating new opportunities for innovation and expansion.
The GCC has recently seen developments like the use of AI in finance and e-commerce. Financial institutions are embracing AI for risk management and fraud detection, while retail companies are using it more and more for supply chain optimisation and personalised customer experiences.
As stakeholders realise how crucial it is to preserve confidence in AI systems, attention is also shifting towards data protection and ethical AI practices. It is anticipated that as AI technology continues to evolve in the region, these developments will improve the general efficacy and efficiency of the GCC's many industries.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
GCC Applied AI Market Drivers
Government Initiatives and Investments in Artificial Intelligence
The Gulf Cooperation Council (GCC) region is witnessing a significant surge in government initiatives aimed at promoting the integration of Advanced Artificial Intelligence within various sectors.
The Saudi Arabian government, for example, has launched the Saudi Vision 2030 program, which allocates substantial funding for Research and Development in Artificial Intelligence technologies, with expected investments exceeding $20 billion over the next decade.
This commitment is expected to drive the GCC Applied AI Market, as it lays a foundation for infrastructural development and encourages private sector participation, furthering innovations in healthcare, logistics, and education.
The UAE’s Artificial Intelligence Strategy 2031 also sets a precedent for other GCC nations, designating 50 key projects over the next few years, fueling a collaborative environment between public and private stakeholders to harness the potential of AI across various facets of society.
As a result, the market is experiencing exponential growth, driven by supportive policy frameworks and funding, indicating a heightened focus on AI as a catalyst for economic diversification and technological advancement in the region.
Increasing Demand for Automation Across Industries
The demand for automation within GCC industries is on the rise, as businesses seek to enhance efficiency and reduce operational costs. The World Economic Forum estimates that automation, propelled by Advanced Artificial Intelligence, could boost productivity in the Middle East by 29% by 2030.
Additionally, sectors such as manufacturing and energy are anticipated to lead the way, with firms like Saudi Aramco and Abu Dhabi National Oil Company investing heavily in AI-driven technologies to streamline operations and improve decision-making processes.
This growing trend toward automation is a primary driver in the GCC Applied AI Market, as companies recognize the potential of AI to transform traditional processes, thereby resulting in significant improvements in performance and profitability.
Growth of Data-Driven Decision Making
The proliferation of big data is fueling the growth of data-driven decision-making processes across the GCC. According to the International Data Corporation, the region is projected to witness a 30% annual increase in data generation over the next five years.
Organizations such as the Qatar Foundation have been pivotal in establishing data repositories that enable businesses to leverage AI for insights and informed decision-making.
This trend is critical for the GCC Applied AI Market, as it underscores the importance of employing advanced analytics and AI capabilities to maximize potential gains from the vast amounts of data being generated, thereby empowering organizations to enhance their strategic approaches and competitiveness in the marketplace.
Rising Consumer Expectations for Personalization
There is a noteworthy shift in consumer expectations toward personalized services and experiences, which is driving the adoption of Artificial Intelligence technologies within the GCC.
Surveys show that 70% of consumers in the GCC now prefer brands that offer personalized experiences, prompting retail giants like Majid Al Futtaim to integrate AI systems that analyze customer behaviors and preferences to curate tailor-made services.
This inclination for personalization is a crucial driver for the GCC Applied AI Market, as businesses aim to meet evolving consumer demands by leveraging AI solutions to deliver targeted marketing, product recommendations, and improved customer engagement.
The emphasis on personalized consumer experiences is likely to spur innovative developments within the sector, enhancing the overall market growth.
GCC Applied AI Market Segment Insights
Applied AI Market Components Insights
The Components segment of the GCC Applied AI Market encompasses a variety of offerings essential for the effective deployment of artificial intelligence technologies within diverse industries across the Gulf Cooperation Council. In recent years, there has been a noticeable surge in the demand for innovative and efficient Software solutions that cater specifically to the complex needs of businesses in this region.
Software products play a pivotal role in automating processes, enhancing decision-making, and driving productivity, thus forming a cornerstone of the Applied AI Market in GCC. Furthermore, the growing reliance on data-driven insights is pushing organizations to leverage advanced algorithms and machine learning techniques in their Software development.
This trend aligns with the GCC governments’ strategic initiatives to integrate AI across sectors, thereby fostering an environment conducive to growth and innovation. Services also represent a significant component in the GCC Applied AI ecosystem, providing crucial support in the implementation, maintenance, and optimization of AI frameworks.
Adept service providers are instrumental in ensuring that organizations can successfully navigate the complexities of AI integration, thereby enhancing overall operational efficiency. The demand for tailored Services is bolstered by the need for continuous support, customization, and training that businesses require as they adapt to rapidly evolving AI technologies.
Both Software and Services categories hold substantial importance as they not only facilitate operational enhancements but also drive economic diversificationa critical objective for GCC nations as they seek to reduce dependence on oil revenues and develop a more robust knowledge-based economy.
Moreover, the GCC's robust infrastructure, along with government funding directed towards Research and Development in the AI domain, presents an extensive opportunity for innovation and growth within the Components segment.
The longstanding emphasis on digital transformation across industries, ranging from healthcare and finance to logistics and manufacturing, contributes to an ongoing surge in demand for advanced Software solutions and specialized Services.
With a focus on enhancing citizen experience and service delivery, entities within the region are increasingly looking to harness the capabilities of AI technologies to align their operations with global standards.
As the GCC continues to invest in its digital economy and encourages collaboration between private and public sectors, the Components segment is positioned to play a pivotal role in shaping the future landscape of the Applied AI Market in the region, with robust support from both governmental initiatives and burgeoning private sector investments.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Applied AI Market Application Insights
The GCC Applied AI Market is expected to see robust development in its Application segment, with various industries effectively integrating artificial intelligence to enhance operational efficiency and customer engagement. Notably, sectors such as Healthcare and Finance are leveraging AI for predictive analytics and risk assessment, contributing significantly to the market evolution.
The Retail and E-commerce domain is also notably transforming through personalized shopping experiences and inventory optimization driven by advanced algorithms. Furthermore, predictive maintenance is gaining traction across industries, ensuring improved reliability and longevity of machinery, thus preventing costly downtimes.
Natural Language Processing is reshaping customer service approaches in sectors like Cybersecurity and Human Resources, by enabling automated responses and sentiment analysis. The Energy and Utilities sectors are employing AI for smart grid management and energy optimization, while Agriculture is embracing AI for precision farming and crop management.
Education, Entertainment and Media, Real Estate, Transportation and Logistics are upscaling with AI-powered solutions for enhanced user engagement and operational management. With the growing emphasis on environmental sustainability, the Environmental Monitoring domain is increasingly integrating AI to analyze performance metrics and support ecological conservation efforts.
This landscape signifies a diversified approach towards technological innovation, with multiple opportunities for growth underpinned by the GCC's strategic investments in digital transformation and AI capabilities.
GCC Applied AI Market Key Players and Competitive Insights
The GCC Applied AI Market has emerged as a cornerstone of technological advancement within the region, showcasing a competitive landscape that is rapidly evolving. Various players are focusing on integrating artificial intelligence into transformative applications that span sectors such as finance, healthcare, logistics, and customer service.
As governments in the GCC push for digital transformation and economic diversification, companies operating in this space are aggressively innovating to stay ahead of technological trends and meet the growing demands of businesses and consumers alike.
The competition is characterized by collaborations, strategic partnerships, and the introduction of cutting-edge solutions aimed at delivering efficiency and enhancing user experiences.
Within the GCC Applied AI Market, SAP has positioned itself as a formidable player, leveraging its extensive portfolio of enterprise software solutions designed to harness the potential of artificial intelligence.
The company is recognized for its robust cloud platforms and analytics tools, which enable businesses to streamline operations and enhance decision-making processes. SAP's strengths in the GCC region lie in its deep understanding of local market needs, strong relationships with government entities, and significant investments made in regional partnerships.
This focus on local adaptation has equipped SAP with the capability to provide tailored AI solutions that align closely with the operational requirements of various industries, thus fostering better market penetration and customer loyalty.
NVIDIA has also established a strong foothold in the GCC Applied AI Market, driven by its powerful GPU technologies tailored for deep learning and AI applications. The company is known for its cutting-edge products such as the NVIDIA DGX systems, which are designed to accelerate AI development and deployment across various sectors.
NVIDIA's strengths in the region include its commitment to innovation, significant engagement with local universities and research institutions, and a strong ecosystem of partners that facilitate the integration of its technologies into real-world applications.
With an increasing trend towards AI adoption, NVIDIA is actively involved in expanding its presence through strategic alliances and collaborations, providing comprehensive solutions that enable businesses to leverage AI for enhanced performance.
The company's focus on providing state-of-the-art technology and its participation in regional conferences and events underscore its dedication to driving AI advancements and supporting the GCC's goals for technological leadership.
Key Companies in the GCC Applied AI Market Include
GCC Applied AI Market Developments
Microsoft pledged US$1.5 billion to G42 in Abu Dhabi in April 2024, creating AI research facilities and developing cloud computing and data platforms. With the goal of constructing AI factories and high-performance computing clusters, Saudi Arabia established Humain, a state-backed AI company supported by Nvidia, AMD, Qualcomm, and AWS, in May 2025.
The UAE demonstrated regional leadership in multilingual AI platforms in June 2025 by introducing Falcon Arabic, an Arabic language model from the Advanced Technology Research Council. After the UAE and Kuwait took the lead in creating legislative frameworks controlling the research and application of AI, Bahrain advanced with its first AI regulation law in September 2024.
At the Global AI Summit in June 2024, the UAE highlighted automation and entrepreneurship driven by AI as the two main pillars of future industrial growth. In order to assist edge computing in the telecom, transportation, and energy industries, Saudi Arabia's SDAIA teamed up with AMD in February 2025 to co-develop AI-ready data centres.
These programs demonstrate the GCC's significant advancements in public-private cooperation, infrastructure investment, and regulatory support, enhancing its standing as a developing centre for applied AI innovation.
GCC Applied AI Market Segmentation Insights
Applied AI Market Components Outlook
Applied AI Market Application Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 2.23(USD Billion) |
| MARKET SIZE 2024 | 4.48(USD Billion) |
| MARKET SIZE 2035 | 10.55(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 8.098% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | SAP, NVIDIA, Cisco, Tencent, Accenture, Amazon, Google, Microsoft, Facebook, SAS, Oracle, IBM, DataRobot, Salesforce, Alibaba |
| SEGMENTS COVERED | Components, Application |
| KEY MARKET OPPORTUNITIES | Smart city initiatives, Healthcare AI integration, Financial services automation, Retail personalized experiences, Enhanced cybersecurity solutions |
| KEY MARKET DYNAMICS | Economic diversification initiatives, Government investments and regulations, Rapid technological adoption, Skilled workforce availability, Growing demand for automation |
| COUNTRIES COVERED | GCC |
Frequently Asked Questions (FAQ) :
The GCC Applied AI Market is expected to be valued at 4.48 USD Billion in 2024.
By 2035, the GCC Applied AI Market is anticipated to reach a value of 10.55 USD Billion.
The market is expected to grow at a CAGR of 8.098% from 2025 to 2035.
In 2024, the Software segment of the GCC Applied AI Market is valued at 2.17 USD Billion.
The Services segment is projected to reach 5.45 USD Billion in value by 2035.
Key players in the market include SAP, NVIDIA, Cisco, Tencent, Accenture, and Amazon among others.
The market faces challenges such as technology adoption and regulatory compliance.
Significant opportunities exist in sectors like healthcare, finance, and smart cities.
Key applications include predictive analytics, customer service automation, and security systems.
Current geopolitical tensions may affect investment and partnership opportunities in the market.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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