This week showcases rapid expansion of artificial intelligence across the Middle East, with major investment, strategic partnerships, and policy shifts driving growth. From record revenues for regional tech firms to national-level AI mandates, the region is aggressively positioning itself as a global AI hub.
Financial Performance & Investment
Presight’s 37% Revenue Jump Signals Regional AI Strength : UAE-based Presight AI Holding PLC reported AED 3.03 billion in FY25 revenue – a 36.9% increase fueled by a 130% surge in international revenue. This marks their twelfth consecutive quarter of growth, with AED 3.4 billion in new orders secured. This sustained growth demonstrates the increasing demand for advanced AI solutions in the region and Presight’s success in meeting that demand.
G42 Expands AI Infrastructure in Vietnam : Abu Dhabi’s G42 has secured up to $1 billion in usage commitments for expanding sovereign AI infrastructure in Vietnam, partnering with FPT Corporation and Viet Thai Group. This move is significant because it represents a strategic push by the UAE to extend its AI influence beyond the Middle East, establishing key partnerships in emerging markets.
Magna AI Secures $700M Malaysia Data Centre Deal : Magna AI has signed an MoU to develop sovereign-ready AI infrastructure in Malaysia, including a 20MW data centre. With Malaysia’s AI adoption growing at 35% annually, this investment targets a rapidly expanding market eager to establish its own independent AI capabilities.
National Strategies & Education
Saudi Arabia Mandates AI Curriculum for All Undergraduates : The Saudi Data and Artificial Intelligence Authority (SDAIA) is implementing a mandatory national data and AI curriculum across all universities, backed by 14 institutions. This policy signals a commitment to building a future workforce equipped with essential AI skills, ensuring national competitiveness in the long term.
Tajikistan Partners with G42 for National AI Strategy : Tajikistan is collaborating with G42’s Inception to accelerate its National AI Strategy 2040, focusing on capacity building and scalable government use cases. This move positions Tajikistan as a regional AI testbed, leveraging international expertise to rapidly develop its own AI ecosystem.
Morocco Launches National Digital Super-App : The Moroccan government has unveiled Idarati X.0, an AI-integrated super-app combining digital identity and a smart wallet. This initiative streamlines public services and promotes digital governance, aligning with broader regional efforts to modernize administrative processes.
Emerging Trends & Technologies
UAE Leads in AI Maturity : According to BCG, 42% of UAE organizations have reached ‘AI Leader’ status, surpassing the global average of 40%. This dominance reflects proactive investment in AI adoption and a willingness to integrate advanced technologies across industries.
UAE Universities Develop 6G AI Benchmark : Khalifa University and UAE University released 6G-Bench, an open benchmark for evaluating LLMs within 6G networks. This collaborative effort sets standards for AI-native telecom infrastructure, positioning the UAE at the forefront of next-generation connectivity.
Cybersecurity Advances with RedSage LLM : Khalifa University, with partners in Europe, developed RedSage, an open-source cybersecurity LLM for privacy-preserving security operations. This highlights growing investment in AI-driven cybersecurity solutions, addressing critical vulnerabilities in an increasingly digital world.
Corporate & Startup Activity
Tactful AI Raises $1M Pre-Series A Funding : Egyptian startup Tactful AI secured $1 million to expand its agentic AI customer experience platform. This funding demonstrates the growing potential of AI-powered startups in the region, attracting investment from both local and international sources.
Luma AI Expands to Riyadh for Arabic AI : US-based Luma AI is opening an office in Riyadh to advance Arabic-native generative AI, partnering with HUMAIN and Publicis Groupe Middle East. This move underscores the demand for localized AI solutions, recognizing the unique linguistic and cultural nuances of the Arab world.
The Middle East’s aggressive AI push is reshaping regional economies and setting the stage for accelerated innovation. Strategic investments, national policies, and private sector growth are converging to establish the region as a key player in the global AI landscape.
