In The Spotlight
Chinese engineering and construction firm SEPCOIII has officially announced the full commercial operation of the Saudi Red Sea Utility Infrastructure Project.
SEPCOIII completes Red Sea Utility Project
Chinese engineering and construction firm SEPCOIII has officially announced the full commercial operation of the Saudi Red Sea Utility Infrastructure Project.
This achievement marks a significant milestone for Saudi Arabia’s ambitious Vision 2030 programme. By seamlessly blending renewable power generation, substantial battery storage, and advanced water management, the multi-utility project sets a new global benchmark for sustainable tourism development. It demonstrates how luxury hospitality can thrive independently of interconnected national power grids, offering an operating example for similar isolated networks globally.
The vision for off-grid tourism infrastructure
The Red Sea development is engineered to be one of the world's most ambitious regenerative tourism destinations. However, establishing a luxury footprint in a remote, ecologically sensitive coastal region requires a radical departure from conventional utility solutions. Extending traditional transmission lines and water pipelines is frequently uneconomic and environmentally disruptive.
To address these distinct geographical and ecological challenges, the mega-resort relies entirely on a self-sustaining microgrid. The successful commercialisation of this integrated utility project underscores the kingdom's serious commitment to sustainable infrastructure within its giga-projects. For investors and developers eyeing the wider region, reliable, green utility infrastructure is a fundamental differentiator, enhancing long-term value and livability while safeguarding natural habitats.
Integrated systems powering the Red Sea
SEPCOIII, a wholly owned subsidiary of POWERCHINA, delivered the venture under an Engineering, Procurement, and Construction (EPC) agreement. It is widely recognised as the first utility-scale commercial installation globally to integrate multiple complementary power and utility systems of this magnitude.
Rather than just focusing on power generation, the comprehensive package provides all essential services to luxury hotels and tourism facilities across the destination. Under the EPC contract, the interconnected infrastructure components delivered include:
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A 358 MWac solar photovoltaic (PV) generation plant.
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A battery-based energy storage system (BESS) featuring a capacity of more than 1,300 MWh.
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Robust electrical grid systems and telecommunications infrastructure.
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Seawater desalination plants paired with potable water distribution lines.
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Complete wastewater conveyance networks and advanced sewage treatment facilities.
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Sustainable solid-waste processing and district cooling setups.
Setting global records in renewable energy
The transition to full commercial operation represents the completion of the wider multi-utility package, bringing online assets that have been progressively commissioned since 2023. The project was developed under a public-private partnership structure, bolstered by a long-term offtake agreement supported by Saudi Arabia’s Public Investment Fund (PIF). Key technology partners included major Chinese suppliers for the energy storage and solar modules.
Because of its unprecedented scale and innovative integration, the multi-utility microgrid has garnered substantial international acclaim. Its technical advancements and eco-conscious construction methods have resulted in numerous industry accolades:
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A Guinness World Record in 2025 for the world's largest off-grid battery energy storage project by capacity.
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The prestigious 2022 MUSE Design Gold Award.
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The 2026 Renewable Energy Innovation of the Year Award.
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The 2026 Sustainable Construction Project of the Year Award.
Economic and Environmental Impact
Beyond the immediate environmental benefits of displacing fossil fuels and preserving the pristine coastal ecosystem, the utility mega-project delivers robust economic advantages. The broader Red Sea development, propelled by this foundational infrastructure, is projected to create approximately 70,000 jobs. Furthermore, it is expected to contribute an estimated SAR 22 billion to the national GDP.
By successfully bringing this colossal system to full commercial operation, SEPCOIII has demonstrated that large-scale renewable energy, storage, water, and waste systems can be seamlessly combined to support sustainable tourism in isolated locations. The technical and operational lessons learned from this record-breaking installation will undoubtedly pave the way for future off-grid developments, proving that high-end luxury and absolute sustainability can cohesively coexist.
During the event's second day, international leaders, innovators, and policymakers convened to explore the capital and technological advancements that are actively shaping the next phase of the global energy transition.
Middle East Energy 2026 drives the global energy dialogue
The global shift towards sustainable infrastructure and renewable energy has officially transcended theoretical ambition.
Across the world, the focus has pivoted sharply towards execution, financing, and the practical application of next-generation technologies. Nowhere was this more evident than at the 50th edition of Middle East Energy 2026, where the industry’s most pressing challenges and pioneering solutions took centre stage.
During the event's second day, international leaders, innovators, and policymakers convened to explore the capital and technological advancements that are actively shaping the next phase of the global energy transition. It has become increasingly clear that achieving net-zero targets will require a fundamental restructuring of how power is generated, distributed, and consumed on a macroeconomic scale.
Ai and innovation at the core of energy strategy
At the heart of this global dialogue was a profound emphasis on the intersection of artificial intelligence, digital transformation, and sustainable power generation. The day commenced with a highly anticipated Leadership Summit keynote delivered by H.E. Omar bin Sultan Al Olama. During his address, he meticulously outlined the complex matrix of modern energy demands.
“Demand continues to grow, technology is advancing at an exponential rate, and artificial intelligence is reshaping how we produce, manage, and consume energy. These are not separate challenges; they are part of the same equation. The question before us is not simply how we generate more energy, but rather how do we build a cleaner, smarter, resilient, and sustainable energy system capable of supporting long-term economic growth,” he said.
Furthermore, he contextualised the strategic vision of the host nation, framing power generation as a foundational pillar for comprehensive socio-economic development.
“For the UAE, the journey is guided by a simple belief: energy is not an end in itself. Energy enables progress. It enables industry. It enables technology. It enables mobility, it enables prosperity, and increasingly, it enables national competitiveness,” H.E. Al Olama added.
Supply chains and decentralisation
Throughout various speaking forums, senior voices representing government bodies, international utilities, and global finance presented robust investment cases for renewable energy. The central themes included artificial intelligence, grid flexibility, and digital technologies. This collaborative agenda highlighted an industry-wide consensus: the narrative must move away from establishing targets and towards tangible delivery and execution.
The Leadership Summit also featured critical fireside conversations that brought geopolitical factors and supply chain realities into sharp focus. Experts dissected the ongoing global realignment of clean energy manufacturing, evaluating the vital role of critical mineral supply chains, logistics, and shipping corridors in safeguarding the momentum of the energy transition.
Simultaneously, the Technical Excellence Forum hosted a pivotal session titled “Energy Transition & Decentralisation”. Here, industry specialists explored the architecture of the region's net-zero pathway, specifically identifying microgrids, distributed generation, and demand-side flexibility as the essential building blocks for modern, resilient energy networks.
Beyond the strategic dialogues, Middle East Energy 2026 sal co
Key innovations and technological breakthroughs showcased included:specialised, sustainability-focused engineering solutions explicitly designed for intelligent infrastructure.
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Lucy Electric: Launched the Nuventura Nu1, an innovative, sustainable, and completely SF6-free switchgear capable of delivering reliable performance up to 36kV.
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Saudi Meters: Displayed advanced, smart water and electricity metering solutions designed to enhance resource tracking and efficiency across the grid.
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InfiVR: Pushed the boundaries of workplace safety by showcasing AI-powered health, safety, and environment (HSE) training programmes.
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Shandong Taikai: The Chinese enterprise exhibited cutting-edge, high-voltage power transmission and transformation equipment.
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Hunan Guochuang Electric: Highlighted its precision-engineered transformer components, tailored specifically for the new energy and ultra-high voltage sectors.
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Hash House: Introduced the H1-630, a highly compact cryptocurrency mining device engineered to integrate seamlessly with solar and battery systems, thereby allowing users to monetise excess energy generation.
As international exhibitors continue to unveil revolutionary products on the show floor, the momentum of the event underscores a critical reality: the tools required to build a sustainable, tech-driven energy future are already here. With Middle East Energy running until 3 September, the global energy sector is undoubtedly accelerating towards a smarter, more resilient era.
EMFIS® is expanding its methodology across EYWA Way of Water.
EYWA Way of Water brings low-EMF living to Dubai Water Canal
As wellness real estate evolves, architectural focus is shifting toward invisible environmental conditions that influence human biology.
Along the Dubai Water Canal in Business Bay, luxury residential development EYWA Way of Water is targeting EMFIS® Certification to deliver an independently verified low-electromagnetic living environment. Designed to filter out ambient electromagnetic frequencies, the waterfront project prioritises nervous system quiet and cellular recovery alongside LEED Platinum, WELL Platinum, and WiredScore Platinum benchmarks.
Modern homes generate constant electromagnetic fields from internal wiring, Wi-Fi networks, smart systems, and external 5G infrastructure. Although the World Health Organization classifies radiofrequency electromagnetic fields as possibly carcinogenic, electromagnetic hygiene remains largely unaddressed by conventional healthy-building frameworks. European regulators are responding: France has banned Wi-Fi in daycare centres, while Switzerland has legislated precautionary exposure limits for schools and hospitals.
Shielding Built Environments by Design
Building on its earlier certification of EYWA – Tree of Life, EMFIS® is expanding its methodology across EYWA Way of Water. Designed by OAD (Zane Tetere-Sulce) with consultant John R Harris, the scheme encompasses approximately 65 ultra-luxury residences—ranging from two- to five-bedroom apartments to duplexes and a penthouse—with delivery expected around 2028.
By incorporating shielding and infrastructure choices directly into foundational design, the project preserves aesthetics whilst dramatically reducing daily radiation:
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Low-Frequency Fields: Reductions of up to 98.7% in electric fields, verified via third-party testing.
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High-Frequency Fields: Reductions of up to 81.8% in electromagnetic fields from wireless sources.
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Restorative Focus: Dedicated bedroom shielding to facilitate nervous system recovery and long-term vitality.
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Scientific Rigour: Standards developed from EPFL research and recognised by Switzerland’s national standardisation body, an ISO member.
Surging Demand for Verified Wellness
The initiative aligns with rapid capital growth across wellness-centred developments. The Global Wellness Institute projects the global wellness real estate market will grow from $876 billion to $1.8 trillion by 2030. In the UAE, the sector expanded from $3.3 billion in 2017 to $14.6 billion in 2025, reflecting a 21% annual growth rate.
While wellness assets command standard price premiums of 10% to 25%, buyers increasingly distinguish verified scientific metrics from marketing claims. EMFIS® benchmark data indicates that verified low-EMF certification delivers an average added value of approximately 14%.
Industry Perspectives on Longevity
Federico Marangoni, Founder and CEO of EMFIS®, commented: “Green building told us how a building treats the world outside it. The next question - the one EYWA Way of Water is helping answer - is what a building does to the people inside it over the course of a lifetime. Electromagnetic pollution is the dimension of the indoor environment the industry has not yet had the tools to measure and certify. That is exactly the gap EMFIS® closes, and EYWA Way of Water is one of the clearest examples in the region of a developer addressing it at design phase, where it makes the most difference. EYWA Way of Water is pitched to offer the quietest square meters in Dubai.”
Mariska Stoffel, Director of Design & Development at R.Evolution, commented: “Architecture is becoming much more sophisticated in how it responds to human wellbeing. When people spend around 90% of their time indoors, we are shaping the environment where much of daily life happens. That means looking beyond aesthetics to the invisible conditions created by the building itself. Sleep and recovery are a key part of that, which is why EMFIS® provides an important benchmark for how we address electromagnetic exposure. At EYWA Way of Water, we are designing for people who take a long-term view of both capital and personal wellbeing, while creating healthier, more considered living environments in an increasingly connected world.”
Shailesh Bhandari, Director, John R Harris commented: “At John R Harris & Partners, sustainability is embedded in our thinking from the first line of a project. EYWA Way of Water extends that principle into territory the industry is only beginning to navigate seriously: the electromagnetic environment that residents live within every day. Partnering with EMFIS® reflects our belief that truly well-crafted spaces actively support the health and longevity of those who inhabit them.”
With a GCC showroom in the UAE and schemes across eight nations, EMFIS® positions the project within a regional movement embedding electromagnetic hygiene into architectural design.
Veolia has signed three strategic memorandums of understanding with premier national industrial entities: Acwa, Ma’aden, and Khazeen.
Veolia signs triple accord to bolster Saudi's environmental security
Industrial sustainability and resource resilience have taken centre stage in the Middle East, with environmental security rapidly emerging as a cornerstone of economic sovereignty.
In a decisive move to accelerate the Kingdom of Saudi Arabia's resource preservation, environmental services leader Veolia has signed three strategic memorandums of understanding with premier national industrial entities: Acwa, Ma’aden, and Khazeen.
Announced on 1 September 2026, these landmark agreements establish an enhanced cooperation framework across advanced water technologies and hazardous waste treatment. Closely aligned with the national objectives of Saudi Vision 2030 and Veolia's strategic GreenUp programme, the tripartite partnerships tackle several of the Kingdom's most urgent priorities: energy efficiency, industrial decarbonisation, the preservation of scarce water reserves, and the long-term cultivation of local technical capabilities.
High-Impact Partnerships Across Vital Sectors
The collaborative pacts target three pillar industries within the Saudi economy—water desalination, mining, and energy storage:
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Acwa: Partnering with the world-leading private water desalination company, energy transition champion, and pioneer in commercial-scale green hydrogen to enhance desalination plant operations.
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Ma’aden: Teaming up with the mining giant to overhaul the sector’s water cycle and industrial waste systems to promote economic diversification.
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Khazeen: Collaborating with the liquefied petroleum gas (LPG) storage specialist, a subsidiary of the National Gas and Industrialization Company (GASCO), to decarbonise nationwide infrastructure.
Reinforcing the critical nature of these initiatives, Estelle Brachlianoff, CEO of Veolia, highlighted the broader strategic imperative behind the agreements:
"Environmental security has become an essential condition for the sovereignty, competitiveness, and strategic autonomy of territories. In Saudi Arabia, this involves the ability to preserve every drop of water, decarbonize industrial development, and turn waste into resources. Through these agreements, and thanks to our cutting-edge technologies and solutions, we are taking action on a large scale to turn challenges into concrete and effective solutions, in line with Saudi Vision 2030. Our innovations and expertise are only effective when they find concrete applications in response to a territory's challenges and in support of its essential infrastructures," says Estelle Brachlianoff, CEO of Veolia.
Advancing Desalination Performance With Acwa
Water scarcity remains one of the region's defining challenges, making efficiency in desalination essential. Expanding on previous operational successes across regional facilities, Veolia’s memorandum of understanding with Acwa focuses on optimizing plant design and daily performance. The collaboration targets:
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Upgrading energy efficiency across desalination facilities;
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Optimising the application of chemical solutions and improving overall water quality;
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Deploying state-of-the-art technical, digital, and operational practices.
Acwa’s operations currently manage a daily capacity of 9.7 million cubic metres—equivalent to 3,900 Olympic swimming pools per day. Through this partnership, the projected emissions reduction could reach up to 500,000 tons of CO₂ annually, an environmental benefit equivalent to taking approximately 110,000 conventional cars off the road, whilst significantly cutting operating costs and safeguarding regional water security.
Circular Economy and Industrial Decarbonisation
Beyond water production, the agreements introduce circular economy solutions to the Kingdom’s extractive and energy logistics sectors.
In the mining industry, Veolia is collaborating with Ma’aden to rethink supply chain sustainability. By implementing advanced water technologies, the partnership aims to treat and reuse industrial process water. Additionally, the agreement focuses on the management of hazardous waste, exploring material recovery, source reduction, and valorisation to establish closed-loop industrial systems.
Concurrently, the agreement with Khazeen deploys environmental technologies across its nationwide LPG storage facilities. Veolia will implement industrial water treatment and hazardous waste management solutions, alongside developing an integrated Facility Management offering covering water, energy, and waste for Khazeen’s commercial clients.
Five Decades of Environmental Stewardship
These strategic agreements consolidate Veolia’s half-century presence in the Kingdom. Operating in Saudi Arabia since 1975, the group has long managed essential infrastructure, including treating industrial wastewater from major petrochemical facilities at Jubail, the world’s largest industrial complex. Through sustained investments in water reuse, energy efficiency, and hazardous waste treatment, Veolia continues to anchor Saudi Arabia's transition towards environmental security and sustainable industrial growth.
Conducted by Ciena with Censuswide, the research polled 100 service provider experts in the UAE and 100 in Saudi Arabia, forming part of a global analysis of 1,200 respondents across 12 countries.
Gulf telecoms target net-new revenue with AI network services
Telecommunications providers across the Middle East are realigning their strategic priorities, recognising artificial intelligence not just as an operational tool, but as a primary catalyst for commercial expansion.
A recent study has underscored this shifting landscape, revealing that service providers in both the United Arab Emirates and Saudi Arabia anticipate high-capacity AI-driven network services will become a dominant force in generating net-new revenue over the next three to five years.
Conducted by Ciena with Censuswide, the research polled 100 service provider experts in the UAE and 100 in Saudi Arabia, forming part of a global analysis of 1,200 respondents across 12 countries. The findings demonstrate a clear consensus on the financial potential of AI infrastructure, including the connectivity required by enterprises, hyperscalers, and neoscalers. According to the data, 96 per cent of UAE service providers and 90 per cent of their Saudi counterparts expect AI-enabled network services to primarily drive near-term revenue growth.
To support premium enterprise AI service-level agreements (SLAs), robust network infrastructure is essential. The survey highlights a pronounced urgency within the region, particularly in the UAE, where 97 per cent of service providers report an immediate need for optical network upgrades. This figure noticeably outpaces the Saudi Arabian average of 86 per cent and the global average of 88 per cent, indicating an aggressive approach to network modernisation.
Pete Hall, regional managing director for the Middle East and Africa at Ciena, articulated the nuances regarding this transition.
“Globally, service providers are balancing optimism with urgency about AI-driven revenue opportunities,” Hall stated. Addressing the distinct positioning of the Gulf, he added, “The survey findings for UAE and Saudi Arabia showed the same optimism, but urgency sits at the center of the conversation. In the UAE, service providers are treating network upgrades and automation as something to act on now, not plan for later. In Saudi Arabia, service providers are also focused on AI inference, service reliability, and sovereign infrastructure requirements.”
Divergent cloud and interconnectivity strategies
While the ambition to monetise AI is shared, service providers in the UAE and Saudi Arabia are charting divergent paths for cloud connectivity and data centre strategies:
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AI Inference and Data Centres: Growth in AI inference data centres is expected to influence demand for interconnect services heavily. In Saudi Arabia, 58 per cent of respondents foresee this increase, tracking above the global average of 49 per cent. Conversely, only 37 per cent of UAE providers share this expectation.
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Multi-Cloud Connectivity Models: Saudi operators prioritise multi-cloud connectivity management, leading as a revenue driver for 64 per cent of respondents. In a reversal of global patterns, 57 per cent of UAE providers still view traditional fixed-capacity services as their primary revenue model, placing it ahead of multi-cloud management (46 per cent).
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Wholesale Hyperscaler Demand: Accommodating hyperscalers is universally critical. This segment is viewed as a substantial contributor to wholesale revenue growth by 99 per cent of UAE respondents and 91 per cent of Saudi respondents, aligning with the global average of 95 per cent.
Expanding portfolios and quantum-safe security
Beyond core connectivity, telecommunications organisations are identifying emerging avenues to expand AI-related revenue streams. Physical AI ecosystems, encompassing industrial robotics and remote-control systems, present a significant opportunity. Fifty-two per cent of UAE respondents and 37 per cent of Saudi respondents anticipate physical AI will account for more than 15 per cent of total enterprise AI revenue within five years. Furthermore, service providers across both markets recognise strong commercial potential in offering GPU-as-a-service.
Network performance and security posture are also undergoing rigorous re-evaluation. In Saudi Arabia, guaranteeing performance stability and maintaining low jitter is considered the leading premium monetisation opportunity. This focus on reliability is cited by 42 per cent of Saudi respondents, surpassing the global baseline of 35 per cent.
Meanwhile, the UAE is demonstrating rapid acceleration toward advanced security frameworks. The deployment of quantum-safe encryption is emerging as a near-term reality. Fifty-four per cent of UAE service providers confirm they have launched or expect to launch quantum-safe offerings within twelve months, compared to 38 per cent among Saudi counterparts. This highlights the UAE's expedited timeline for commercialising secure network solutions.
IBM has officially joined the 17th edition of the Middle East Banking Innovation Summit (MEBIS) as the Title Sponsor.
IBM title sponsors MEBIS 2026 to drive AI banking in Dubai
The Middle East's financial landscape is undergoing a profound digital transformation, with artificial intelligence at the very heart of this evolution.
IBM has officially joined the 17th edition of the Middle East Banking Innovation Summit (MEBIS) as the Title Sponsor. Scheduled for the 16th and 17th of September 2026 at the Jumeirah Emirates Towers in Dubai, the summit is the premier banking technology event in the region.
This major announcement, placed prominently ahead of the industry gathering, underscores IBM’s commitment to equipping regional institutions with enterprise-grade solutions. The summit serves as the ultimate platform to shape the future of autonomous banking with C-level executives and digital innovators converging in the United Arab Emirates.
The shift towards AI-powered financial services
Banking today transcends traditional transaction processing; it is fundamentally about hyper-personalised customer experiences and frictionless digital ecosystems. MEBIS 2026 explores the AI-driven transformation reshaping the sector, focussing heavily on the critical transition from basic automation to advanced Generative and Agentic AI technologies.
IBM’s sponsorship highlights the urgent need for a cohesive digital strategy as institutions face escalating pressure to modernise. The technology leader helps clients across more than 175 countries capitalise on deep data insights, streamline complex processes, and reduce operational costs. Thousands of corporate entities in critical infrastructure areas such as financial services rely on IBM’s hybrid cloud platform and Red Hat OpenShift to execute their digital transformations rapidly and securely.
Innovation cannot come at the expense of enterprise security. IBM’s advancements in quantum computing, industry-specific cloud solutions, and artificial intelligence are backed by a steadfast commitment to transparency and responsibility. At the summit, senior figures, including Shukri Eid, Vice President and General Manager for Gulf, Levant, and Pakistan at IBM, will join strategic discussions on scaling AI responsibly whilst ensuring robust cybersecurity controls are maintained.
Key themes shaping the 2026 summit
The MEBIS 2026 agenda brings banking transformation to the foreground, tackling real-world challenges faced by the region’s boldest banking minds. The structured programme carefully blends visionary keynotes, executive dialogues, and practical case studies.
Attendees will actively explore several critical industry pillars:
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Intelligent Automation: Focussing on responsible scaling, agentic workflows, and delivering a tangible return on investment from artificial intelligence applications.
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Data Strategy: Establishing trusted analytics through enhanced data quality, robust lineage tracking, and strict institutional governance controls.
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Cloud Architecture: Transitioning to modern data platforms that allow for high-speed interoperability and seamless, non-disruptive system upgrades.
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Digital Banking and CX: Designing fully connected omnichannel networks to deliver hyper-personalised customer journeys.
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Risk and Cybersecurity: Implementing advanced threat intelligence and a proactive 'trust-by-design' framework across all digital finance touchpoints.
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Embedded Finance: Utilising open APIs to build collaborative digital ecosystems and unlock entirely new revenue models.
Gathering the region’s financial elite
Attracting over 400 attendees annually, MEBIS draws a highly influential crowd, with more than 75 per cent of delegates holding C-suite or key decision-making roles. The event consistently unites representatives from over 100 retail, corporate, and Islamic banks.
This unparalleled concentration of expertise provides unmatched networking opportunities. Emphasising the importance of this gathering, Saket Saith, Group Chief Technology and Data Officer at RAKBANK, noted: “It's always great to come here, meet people, and understand what's happening in the industry. We can't operate in isolation anymore, networking, sharing challenges, and discovering creative solutions together is essential. That's what brings me back to this event every year.”
Paving the way for digital success in the UAE
Dubai’s strategic position as a global financial hub makes it the ideal host for MEBIS 2026. The active participation of the UAE Banks Federation and top executives from regional heavyweights—such as Mashreq, Emirates NBD, and Dubai Islamic Bank—ensures that the summit’s outcomes will ripple across the wider Middle East.
By securing the Title Sponsor position, IBM is actively architecting the technological framework supporting the next decade of digital finance. As banking leaders convene this September, the focus remains firmly on actionable insights and forming dynamic partnerships that drive the region towards a secure, autonomous, and AI-enabled financial future.
The GCC's digital transformation represents a monumental $260 billion economic opportunity.
Protecting the Gulf’s US$260bn AI future from global bottlenecks
The Gulf Cooperation Council (GCC) stands at the precipice of a sweeping digital transformation, one that promises to reshape its economic landscape for decades to come.
Across the region, artificial intelligence (AI) has rapidly evolved from a theoretical technology into the bedrock of future economic diversification. According to a vital research study published by Strategy&, this digital pivot represents a staggering US$260bn economic opportunity for the Gulf. However, unlocking and sustaining this immense value is not guaranteed. The core finding of the report delivers a stark warning: to protect this $260bn windfall, the GCC must urgently secure critical AI chokepoints. If these vulnerabilities are left unaddressed, the region risks jeopardising its most promising avenue for post-oil economic growth.
The anatomy of global technology chokepoints
To comprehend the scale of the challenge facing the GCC, one must look at the broader architecture of the global AI industry. The concept of 'chokepoints' refers to the highly concentrated, easily disrupted nodes within the global supply chain that are absolutely essential for AI development and deployment. These bottlenecks are multifaceted, encompassing the physical, digital, and intellectual infrastructure required to sustain machine learning models.
Currently, the global AI ecosystem is overwhelmingly reliant on a handful of international suppliers. Advanced semiconductors, particularly the graphics processing units (GPUs) necessary for training complex AI models, are manufactured in highly concentrated geographic hubs. Similarly, high-bandwidth memory chips and the specialised networking equipment required to move data efficiently within vast data centres represent significant vulnerabilities. For the GCC, a region aggressively building its digital capacity whilst importing much of the foundational hardware, these global chokepoints represent a critical strategic risk. Over-reliance on external supply chains means that international trade disputes, manufacturing delays, or geopolitical shifts could severely restrict the Gulf’s access to the very tools it needs to realise its $260 billion AI ambitions.
Protecting a US$260bn economic engine
The US$260bn opportunity identified by Strategy& underscores just how deeply AI is expected to penetrate the Gulf’s primary industries. The GCC is rapidly transitioning away from hydrocarbon dependency, favouring knowledge-based economies championed by national frameworks such as Saudi Arabia’s Vision 2030 and the UAE’s strategic digital initiatives. In this context, AI is slated to drive unprecedented productivity and operational optimisation across sectors ranging from logistics and aviation to healthcare, sovereign wealth management, and smart city development.
However, a topic-first analysis of global technology deployment reveals that an economic opportunity of this magnitude cannot be sustained on fragile foundations. The Strategy& report's focus on securing chokepoints is a clarion call for proactive defensive strategies. If the Gulf cannot guarantee uninterrupted access to advanced computing power, the deployment of enterprise AI applications will stall, significantly eroding the projected economic gain.
Strategic avenues for regional resilience
Securing these critical nodes requires a coordinated, multi-pronged approach to supply chain resilience and infrastructure sovereignty. To safeguard the future of its digital economy, the GCC must focus on several core strategies:
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Supply Chain Diversification: Moving aggressively away from single-source dependencies for vital hardware, including advanced AI processors and networking silicon, ensuring multiple procurement pathways.
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Sovereign Infrastructure Investment: Accelerating the construction of localised, state-of-the-art data centres. By bringing computational power within their own borders, GCC nations can ensure data sovereignty and operational continuity.
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Capitalising on Energy Supremacy: Artificial intelligence is incredibly energy-intensive. The Gulf states can leverage their massive, reliable energy grids—and growing renewable energy capacities—to position themselves as globally competitive hubs for sustainable AI computation.
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Cultivating Domestic Expertise: Reducing reliance on imported intellectual capital by heavily investing in local talent programmes, ensuring the region has the engineering and development expertise required to maintain sovereign AI systems.
Securing the digital horizon
This massive valuation is a testament to the GCC’s immense potential as a global technology leader. Yet, as the Strategy& study makes clear, potential alone is insufficient without highly secure infrastructure. By proactively identifying and reinforcing critical AI chokepoints, the Gulf can insulate its technological investments from global volatility. Securing these vital nodes is no longer merely a matter of standard IT procurement; it is a fundamental pillar of national economic security and the absolute key to realising a prosperous, digitally driven future.