Banks across the United Arab Emirates are increasingly using artificial intelligence to develop personalised financial products, improve customer experiences, and find new avenues for growth. The rapid adoption of AI is reshaping the country’s banking sector, supported by a strong government push to establish the UAE as a global technology leader.
A National Push for AI
The UAE government is a key driver behind the financial sector’s digital shift. Initiatives like the UAE’s AI Charter and Dubai’s Artificial Intelligence Strategy 2031 provide a clear framework for this transformation. The country’s ambition to become a 90 per cent cashless economy by 2026 has further accelerated AI integration.
Reflecting this trend, 71 per cent of financial institutions in the UAE have deployed or enhanced their AI capabilities over the past year. This growth is backed by significant public and private investment, including a government allocation of $135 million for AI education programmes.
A recent initiative by the Emirates Institute of Finance’s Innovation Hub brings together HSBC Bank, Al Maryah Community Bank, and technology firms Presight and Core42. The collaboration aims to explore how AI can improve operational efficiency, cybersecurity, and customer service to create a more secure and effective banking environment.
AI in Action
UAE banks are already applying AI in several practical ways. Many have introduced AI-powered chatbots to provide 24/7 customer support, with RAKBank’s system now resolving 85 per cent of routine inquiries without human help.
AI algorithms are also being used to analyse customer data to offer suitable products and improve risk management. Advanced fraud detection systems are becoming standard, increasing security and building customer trust. Digital wallets like Aani and neobanks such as Wio and Yap are gaining popularity, with 50 per cent of UAE customers now using digital-only services. Wio alone has captured one-third of all new small and medium-sized enterprise accounts by using AI for real-time financial analytics. Meanwhile, established banks like Emirates NBD are investing in training employees in AI management and data literacy.
Economic Projections and Future Growth
The economic potential of this shift is substantial. PricewaterhouseCoopers estimates that AI could contribute approximately $320 billion to the Middle East’s economy by 2030, with the UAE’s share representing nearly 14 per cent of its GDP. According to Imarc Group, the Gulf’s AI market is projected to grow from $5.4 billion in 2024 to more than $22 billion by 2033.
A McKinsey report suggests generative AI alone could add between $21 billion and $35 billion annually to Gulf economies