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Poster - The Gulf’s Journey to AI Leadership: Insights into Data and AI Governance Maturity
Elizaveta Terentyeva

Elizaveta Terentyeva

January 31, 2025

The Gulf Cooperation Council (GCC) countries are undergoing rapid technological transformation, with increased investments in IT driving economic growth across the region.

Recent reports indicate that IT spending in the Middle East and North Africa (MENA) region is projected to experience significant growth, with a notable emphasis on data management and artificial intelligence (AI) investments. According to Gartner’s latest forecast, IT spending in MENA is expected to reach $230.7 billion in 2025, marking a 7.4% increase from 2024. This surge is driven by substantial investments from both governments and private enterprises aiming to position the region as a global leader in AI innovation.

This data- and AI-focused growth highlights the urgency for governments to establish clear frameworks to protect data, foster innovation, and support seamless collaboration between public and private sectors.

Recognizing the importance of data and AI governance, we at Axellect conducted research analyzing 13 key attributes of data regulation practices across six GCC countries. The study examined policies, regulatory frameworks, and strategies aimed at ensuring data protection and supporting AI-driven initiatives. Below, we explore the results, identify trends, and outline the implications for businesses and governments alike.

Gulf’s data and AI regulation landscape

Gulf countries demonstrate varying levels of data regulation maturity. Thus, we have categorized them into three primary groups based on the overall score they were given upon the analysis:

  • Advanced: Saudi Arabia and the UAE, leading the region with comprehensive data strategies and governance frameworks, scoring over 25 points.
  • Developing: Qatar, Bahrain, and Oman, which are making significant strides with scores ranging from 15 to 17 points.
  • Emerging: Kuwait, still in the early stages of regulatory development, scoring 7 points.

Data&AI Regulation Maturity Score


To learn more about the state of data and AI regulations in each GCC country, click the corresponding button below:

Key Research Insights

1. Personal data protection first

Across all groups (from emerging to advanced) foundational elements of data regulation – such as data privacy laws, agencies to safeguard personal information, regulations for cross-border data flows, and open data portals – are in place. These basic measures represent the initial steps governments take to establish trust and lay the groundwork for effective data governance.

2. Advancing to AI

Advanced and developing nations have moved beyond basic regulations to implement AI strategies and digital government frameworks. Such initiatives reflect a broader understanding of the role data plays in enabling AI and fostering digital transformation.

3. The cruсial role of data

The most challenging aspects to implement — data strategy and data governance frameworks — have been established only in the advanced countries like Saudi Arabia and the UAE. We assume that these governments, recognizing the critical role of data in AI development, are working to lay a strong foundation for AI projects by ensuring effective data governance and promoting its responsible use.

4. Rapid progress

Most standards and guidelines have been implemented within the past two years, with additional regulations currently under discussion. Two developing countries, Qatar and Oman, are planning to introduce data strategies, a key and complex component of the data regulation framework. Meanwhile, Qatar and Bahrain are actively working on establishing data governance frameworks. These efforts position Qatar to potentially join the ranks of the more advanced countries in this area.

5. IT spending correlates with data and AI regulatory maturity

A strong correlation (0.94) exists between IT spending, GDP growth, and the maturity of data regulation. Wealthier economies, such as Saudi Arabia and the UAE, have more resources to invest in advanced data management systems, enabling structured and deliberate approaches to AI governance.


Saudi Arabia: A regional leader in data regulation

Saudi Arabia stands out as a pioneer in data and AI governance in the Gulf region, with its substantial efforts to enhance big data management.

According to Cisco AI Readiness Index, 53% of Saudi companies positively assess their analytics tools for handling complex AI-related datasets. However, challenges remain. Namely:

  • 85% of surveyed businesses report data silos within their organizations;
  • 75% acknowledge that analytics tools are not fully integrated with data sources or AI platforms;
  • 37% lack systematic mechanisms to detect biases in data;
  • 24% have no formal processes to address detected biases;
  • 35% lack tested protocols for responding to data breaches or privacy violations.

These findings highlight the need for a comprehensive organizational data strategy and robust governance frameworks to mitigate risks and harness the full potential of AI-driven initiatives.

Conclusion

The Gulf region is rapidly advancing in data regulation and AI governance, with countries like Saudi Arabia and the UAE leading the way. However, challenges persist, particularly in integrating analytics tools, addressing data silos, and establishing robust mechanisms for detecting and mitigating biases.

For businesses operating in the GCC, aligning with evolving regulatory requirements is essential. By adopting comprehensive data management strategies and ensuring compliance with local laws, organizations can position themselves as trusted players in the region’s growing digital economy. Our deep expertise in data and AI governance can help companies evaluate data functions and ensure alignment with legislative demands, enabling them to thrive in a rapidly evolving regulatory landscape.

Get in touch with our experts to learn more

Elizaveta Terentyeva

Elizaveta Terentyeva Data & AI Strategy Manager

Elizaveta leads projects related to data and artificial intelligence strategy development at Axellect. With 10 years of experience in strategy, data-driven initiatives, and innovation ecosystem development in Telecom, IT, and Public Services, Elizaveta strives to help businesses use data as a strategic asset.
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