Technology

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.

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:

• 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.

• 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).

• 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.

The GCC's digital transformation represents a monumental $260 billion economic opportunity.

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:

• Supply Chain Diversification: Moving aggressively away from single-source dependencies for vital hardware, including advanced AI processors and networking silicon, ensuring multiple procurement pathways.

• 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.

• 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.

• 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.

Alteryx is set to showcase the future of enterprise AI and 'agentic analytics' at Alteryx on Tour Riyadh and LEAP 2026.

The modern enterprise challenge has shifted from running experimental pilots to executing scalable, real-world operations as AI adoption accelerates globally.

Alteryx is set to showcase the future of enterprise AI and 'agentic analytics' at Alteryx on Tour Riyadh and LEAP 2026. At the heart of this transformation is a new paradigm where businesses move beyond static reporting to deploy autonomous, AI-driven workflows that execute critical decisions seamlessly across operations.

Data Governance and Actionable Insights

Despite the promise of automation, many enterprises find themselves unprepared for this transition. A common hurdle is that enterprise data remains siloed, fragmented, and fundamentally untrusted. When data lacks governance, insights fail to drive meaningful action, and consequently, numerous AI initiatives stall.

Industry experts emphasise a stark reality: "AI tools consume data. They do not prepare or govern it." To unlock the true, scalable value of artificial intelligence, businesses must evolve their operational approach across a distinct continuum. Organisations must actively shift their internal analytics frameworks from manual reporting, to assisted analytics, through to automated processes, and finally toward fully autonomous systems. In the modern era of artificial intelligence, merely collecting data is inadequate. The true competitive advantage stems from activating that data securely, responsibly, and at an enterprise-wide scale.

Showcasing the Future in Saudi Arabia

Addressing this critical enterprise challenge is now the primary focus for leaders in data and business transformation. Building on this momentum, Alteryx will detail its roadmap for the future of enterprise AI during its upcoming technology showcases in the Kingdom of Saudi Arabia. These gatherings serve as a focal point for digital transformation leaders looking to bridge the gap between AI experimentation and operational impact. By highlighting real-world use cases specific to the region, these events aim to provide practical pathways for converting complex, siloed data into highly accountable enterprise value.

Alteryx on Tour: Riyadh

Under the central theme of "Agentic Analytics Starts Here", Alteryx on Tour will take place on 30 August 2026 at the Hilton Riyadh Hotel & Residences. The event will explore how artificial intelligence can be safely operationalised into end-to-end business processes.

The half-day gathering promises to deliver essential insights and networking opportunities for data leaders, including:

• A clear view of an organisation's true AI readiness.

• Practical guidance on migrating smoothly from pilot projects to full production environments.

• Actionable strategies to automate workflows and heavily reduce manual risk.

• Proven approaches to implementing governed, self-service analytics for business users.

• Deep exploration into the rise of agentic, action-driven analytics in modern enterprises.

LEAP 2026 and Industry Collaboration

Following the dedicated tour, the enterprise AI focus will seamlessly shift to LEAP 2026, scheduled from 31 August to 3 September 2026 at the Riyadh Exhibition and Convention Centre in Malham. Universally recognised as one of the world's largest and most influential technology events, LEAP will see Alteryx comprehensively demonstrating how fragmented data architectures can be transformed into trusted insights and automated actions on a global stage.

Highlighting the importance of a unified ecosystem, this presence at LEAP will be bolstered by key industry partners, such as DVW Analytics, who will be exhibiting alongside Alteryx to showcase how governed data foundations can bring disparate data sources directly into AI workflows.

The path to making artificial intelligence work in practice relies heavily on three foundational pillars: clean and governed data, explainable logic-based insights, and automated actions that support confident decisions. As enterprise AI continues its rapid maturation, mastering these essential elements will determine which organisations successfully navigate the new era of agentic analytics. Ultimately, moving beyond basic AI experimentation is what will allow modern enterprises to transform their operational intent into measurable business execution.

Dubai-based AI start-up has successfully automated over 90% of customer orders and inquiries for these traditional sectors.

The integration of artificial intelligence across the Middle East and North Africa (MENA) is rapidly moving beyond digital-first sectors and into the heavy, operational world of physical industries.

Historically, sectors such as manufacturing, logistics, construction, and industrial supply chains have relied on deeply traditional, manual processes to manage client relations. However, a seismic shift is underway. The broader narrative of digital transformation in the region has reached a pivotal juncture, highlighted by the recent announcement that a pioneering Dubai-based AI start-up has successfully automated over 90% of customer orders and inquiries for these traditional sectors.

This milestone represents a fundamental reimagining of how physical industries operate in a modern, hyper-connected economy. By prioritising intelligent automation, businesses in the MENA region are setting a new standard for operational resilience.

The Evolution of the MENA Tech Ecosystem

The MENA region, with Dubai at its epicentre, has spent the last decade cultivating an environment designed to foster deep tech innovation. Through government-backed initiatives, vast technology parks, and a regulatory landscape that encourages experimentation, the Emirate has positioned itself as a global laboratory for artificial intelligence.

Whilst early AI adoption predominantly focused on consumer-facing e-commerce and financial technology, the current wave of innovation is penetrating the foundational sectors of the economy. Physical industries—dealing with the production, movement, and storage of tangible goods—have often been the slowest to adopt customer-facing automation. This reluctance stems from the complexity of their supply chains and the bespoke nature of their client inquiries. By focusing on these historically underserved sectors, Dubai proves its technological ambitions extend far beyond superficial digital applications.

Overcoming Challenges in Physical Industries

For decades, organisations operating within physical industries have faced significant bottlenecks in their customer service and order processing departments.

• Complex Order Structures: Unlike retail purchases, industrial orders involve complex specifications, variable pricing, and intricate delivery logistics.
• Manual Processing: Customer inquiries require human intervention to cross-reference inventory, manufacturing timelines, and shipping availability, leading to heavy administrative burdens.
• Delayed Response Times: The reliance on manual coordination across disparate departments results in delayed responses, directly impacting client satisfaction and slowing the supply chain.

The introduction of domain-expert AI systems directly addresses these systemic inefficiencies. By deploying intelligent agents capable of understanding the nuances of industrial orders, companies can now bypass the traditional silos that have long hindered their growth.

The 90% Automation Threshold
The recent breakthrough by a Dubai-based start-up—achieving an automation rate of over 90% for customer orders and inquiries—serves as a watershed moment for the region. Reaching this threshold indicates that AI systems are no longer functioning merely as rudimentary chatbots. Instead, they are operating as comprehensive, autonomous agents capable of managing the vast majority of client interactions from inception to resolution.

Achieving a 90% automation rate requires an AI infrastructure that can intelligently parse complex data, autonomously verify inventory, process technical industrial inquiries, and seamlessly integrate with existing enterprise resource planning (ERP) systems. For physical industries in the MENA region, this translates to unprecedented scalability. Human workforces are freed from the burden of repetitive, manual order entry and can instead be reallocated to higher-value tasks such as strategic relationship management and complex problem-solving.

Shaping the Future of Industrial Operations

As this technology matures, the implications for the broader MENA economy are profound. The ability to automate routine inquiries allows physical industries to operate with the agility typically associated with software companies. Furthermore, it significantly optimises labour allocation. Instead of relying on expansive administrative teams to manually input data, companies can streamline their operational expenditures. This transition is essential for the region's broader economic diversification goals, ensuring foundational industries remain globally competitive.

This automation initiative highlights a critical evolution in the technological landscape. It demonstrates that the future of artificial intelligence in the MENA region lies not just in the digital realm, but in its ability to revolutionise the physical world. By automating the crucial intersection between industrial operations and customer service, Dubai is setting a new global standard for operational excellence.