The financial services industry has always been at the forefront of adopting advanced technologies. From the first computerized trading systems in the 1970s to algorithmic trading and high-frequency systems in the 2000s, finance has been shaped by innovation.
Today, generative artificial intelligence (gen AI), capable of synthesizing structured and unstructured data, generating forecasts, and even crafting natural-language analysis, is reshaping how analysts, banks, and regulators in the UAE and wider Middle East operate.
AI concept
Generative artificial intelligence (Gen AI) is reshaping how analysts, banks, and regulators in the Middle East operate
Global end user spending on generative AI to hit $14.2 billion this year, says Gartner
Opportunities for financial analysis and forecasting
Enhanced forecasting capabilities
Traditional forecasting relies on econometric models, regression techniques, and historical data patterns. Gen AI tools add a new layer by processing multiple data streams simultaneously, macroeconomic indicators, financial statements, ESG disclosures, even real-time news and social media sentiment. This allows for more dynamic, scenario-based forecasting and stress testing.
AI is expected to significantly impact regional GDP. Finastra projects AI integration in Middle Eastern banking could contribute 13.6 percent to the region’s GDP by 2030, a staggering boost equivalent to hundreds of billions in economic output.
Seventy-one percent of UAE financial institutions have already deployed or upgraded AI capabilities in the past year, placing the country among the world’s most active AI adopters.
The UAE’s AI-in-finance market is projected to grow from $67 million in 2023 to $514 million by 2032, growing at a 25.3 percent CAGR. Government initiatives like the UAE AI Strategy 2031, coupled with fintech ecosystems in Abu Dhabi and Dubai, are accelerating this growth.
Automated reporting and narrative generation
Financial analysts spend significant time producing reports for internal stakeholders and clients. Gen AI can generate draft narratives, earnings commentary, risk outlooks, or investment notes, in seconds, freeing analysts to focus on interpretation and strategic insight.
According to KPMG, 49 percent of finance teams in the UAE already utilize AI for accounting, reporting, and predictive analytics, while 59 percent are piloting AI initiatives, and another 33 percent are preparing to begin pilots. Yet only 37 percent report positive ROI, signaling the need to convert experimentation into sustainable value.
In retail banking and wealth management, gen AI can power customized portfolio recommendations by analyzing individual investor behavior, risk appetite, and market conditions.
The ability to offer highly tailored advice at scale democratizes financial services, bringing personalized insights to clients who might previously have lacked access.
Integration with sustainability data
A growing area of importance in the Middle East is sustainable finance. Gen AI enables integration of ESG metrics with traditional financial performance, creating richer analysis of long-term value. For example, it can evaluate how climate risk scenarios may affect asset valuations or generate forecasts aligned with the UAE’s Net Zero by 2050 strategy.
The Middle East and UAE context
The UAE and wider Middle East are positioning themselves as leaders in AI adoption. Dubai International Financial Center (DIFC) has launched initiatives to integrate AI into wealth management, compliance, and risk modelling, while Abu Dhabi Global Market (ADGM) is fostering AI-enabled fintech startups through regulatory sandboxes.
National strategies such as UAE Vision 2031 and Saudi Arabia’s Vision 2030 emphasize AI, fintech, and digital transformation as central pillars of economic diversification. At the same time, the region’s strong sovereign wealth funds such as ADIA, PIF, and Mubadala are exploring AI-driven investment analytics to strengthen global competitiveness.
Sustainability is also front and center. The UAE Sustainable Finance Working Group and regional green finance pledges require integration of ESG data into financial decision-making. Gen AI can accelerate this shift by enabling banks and asset managers to quickly evaluate sustainability-linked bonds, green sukuks, and carbon transition risks.
For the Middle East, where capital markets are young compared to Western economies, gen AI presents an opportunity to leapfrog traditional systems and implement cutting-edge models that blend financial forecasting with ESG integration and digital innovation.
Unlike traditional statistical models, gen AI often operates as a “black box”, making it difficult to trace how conclusions are reached. In highly regulated markets like DIFC and ADGM, explainability will be key to regulatory approval and investor trust.
AI models are only as good as the data they are trained on. In the region, fragmented disclosure standards and varying ESG reporting practices could lead to distorted forecasts. Unified frameworks, such as those being developed by the UAE Central Bank and regional stock exchanges, will be vital.
Cybersecurity and misuse
The Middle East has seen an increase in cyberattacks on financial institutions. Gen AI introduces new vulnerabilities, from deepfake financial statements to AI-driven fraud. Regulators must proactively update risk frameworks to cover AI-specific threats. Machine learning–driven fraud detection systems in UAE banks show improved risk identification.
However, studies of institutions in the UAE and Qatar highlight the importance of transparency, fairness, and trust, essential elements for AI acceptance in heavily regulated contexts. Similarly, Dubai’s banks are actively implementing AI-powered chatbots, fraud detection, robo-advisors, smart credit scoring, and RegTech strategies, with regulators like the DFSA and UAE Central Bank fostering innovation through sandboxes.
AI
Finastra projects AI integration in Middle Eastern banking could contribute 13.6 percent to the region’s GDP by 2030
Skills of the future: From analysts to AI-fluent strategists
Automating parts of financial analysis raises ethical concerns about workforce displacement. However, in the UAE’s young, digitally savvy labor market, gen AI also represents an opportunity to create new high-skilled roles in AI governance, compliance, and sustainable finance.
The transformation driven by gen AI is not simply technological, it is fundamentally human. Analysts, accountants, and risk managers will require new skills:
The role of universities in the region
Universities in the UAE and wider Middle East have a critical role in preparing the workforce for this transition. Finance curricula can no longer rely solely on accounting principles, corporate finance, or econometrics.
Instead, interdisciplinary programs combining finance, data science, and AI ethics are needed.
Generative AI is not a passing trend; it is reshaping financial analysis and forecasting in ways that were unimaginable even five years ago.
The opportunities, enhanced forecasting, personalized insights, and ESG integration, are transformative. Yet the risks, bias, misuse, and lack of transparency, demand vigilance. For the Middle East, and especially the UAE, the stakes are high.
The region’s unique blend of ambitious national visions, strong financial centers, and youthful talent base offers the chance to lead globally in the responsible use of gen AI.
Universities, industry, and regulators must work together to ensure that financial professionals emerge not just as analysts, but as AI-fluent strategists driving sustainable and inclusive growth.
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