Banks across the Middle East & Africa lack artificial intelligence specialists required to industrialize the technology across institutions, a new study has identified.

Talent remains the core deterrent to scaling AI initiatives across MEA banks, as the region continues to face relevant personnel shortages, the Evident AI MEA Index report has revealed.

UAE lenders have emerged as best performing banks in Evident’s AI index for banks - MEA, assessing 25 of the largest Middle Eastern and African banks on the quality of their talent stacks, their innovation efforts, the tech leadership of their top executives and the guardrails they’ve set up to govern AI effectively.

UAE-based Emirates NBD leads all banks in the Middle East and Africa on AI maturity, edging out local peer First Abu Dhabi bank, the UAE’s largest bank by assets, which ranked third.

South Africa's Standard Bank Group and Nedbank Group, which ranked second and fourth respectively, have prioritized customer preferences and behaviours in their AI deployment.

Emirati and South African lenders dominating the index have emphasized high-impact processes such as payment processing, onboarding, risk analytics and customer advisory.

Emirates NBD has hasnt concentrated as many resource on R&D or experimentation as other lenders and instead has opted for deployment and scale. The lender has more AI staff focused on software implementation and product management – roles critical to connecting AI to business goals – than any other bank ranked, and has reported tangible results - over 98,000 AI-enabled interviews helped save 13,000 recruiter hours and around $400,000.

First Abu Dhabi Bank has focused on scaled enterprise deployment, having automated 50% of its cross-border payments, while AI advisors have helped increase revenue per relationship manager by 30%.

Saudi Arabia’s Al Rajhi (#9), Dubai-based Mashreq Bank (#10), Abu Dhabi Commercial Bank (#12), Qatar National Bank (#16), National Bank of Kuwait (#18) and Dubai Islamic Bank (#21) made it to the index.  

Yet a dearth of specialist AI personnel is limiting the technology’s proliferation, forcing banks to rely heavily on imported expertise. MEA banks employ an average of 300+ AI professionals, compared to a global benchmark of more than 1,750.

Within MEA, AI development staff account for 0.49% of the overall employee base. Not only is the density of regional talent pools significantly below the global benchmark of 0.9%, but they are also unevenly distributed, higher in South Africa (0.95%) and much lower in the UAE (0.29%), Kuwait (0.29%) and Saudi Arabia (0.16%).

Furthermore, MEA banks are increasingly exposed to the global AI talent squeeze, the report said, “compounded by geopolitical instability and structural labour market pressures”.

Most banks invest in AI training programs, but these are not at parity and lag behind global standards.

“Beyond employee training, banks are actively responding to AI talent constraints through internal capability-building efforts that include executive education programs, internal AI events, and targeted graduate or internship pathways. At present, such investments remain uneven and fragmented across the cohort,” the study added.

The World Economic Forum estimates that AI investments across banking, insurance, capital markets and payment businesses will reach $97 billion by 2027.

Egypt has signed a $1.5 billion annual financing agreement with the International Islamic Trade Finance Corporation (ITFC) to fund imports of essential food commodities and petroleum products.

Under the 2026 Annual Work Program, the Egyptian General Petroleum Corporation (EGPC) will receive $800 million, while the General Authority for Supply Commodities (GASC), which manages state food procurement, will receive $700 million.

Planning and Economic Development Minister Ahmed Rostom said the agreement reinforced Egypt's ability to secure basic goods at a time of economic pressure.  He added that the ITFC is a strategic development partner for Egypt that supports the country in providing basic food commodities and petroleum products, backing food and energy security, particularly amid current economic challenges and global instability.

The deal extends a relationship dating to 2008, under which Egypt and the ITFC have signed five framework agreements worth a combined $24 billion. The current framework, first agreed in 2018 and renewed in 2022 for a further five years, covers financing across multiple development sectors as well as trade development, technical assistance, and capacity-building in export-related fields.

Mubadala Investment Company has committed $325 million to the Hornsea 3 offshore wind project in the United Kingdom, as part of its strategy to expand investments in global infrastructure and energy transition assets.

The investment is being made through a consortium led by funds managed by Apollo Global Management, following the firm’s acquisition of a 50% stake in the joint venture that owns the project.

Developed by Ørsted, which will retain the remaining 50% stake and continue to lead construction and operations, Hornsea 3 is located off the UK’s eastern coast in the North Sea.

Karim El Jazzar, head of EMEA infrastructure at Mubadala, said the investment reflects the company’s approach of partnering with established operators to back large-scale infrastructure projects that support the energy transition.

Hornsea 3 is expected to generate 2.9 gigawatts (GW) of electricity, with the capacity to power more than 3.3 million homes. The project forms part of the United Kingdom’s broader plan to expand offshore wind capacity to up to 50GW by 2030 as it works toward net-zero emissions targets.

Rising electricity demand, driven by electrification across transport, heating and digital infrastructure, is expected to support long-term growth in the sector.

The investment adds to Mubadala’s portfolio of renewable energy assets, which includes stakes in companies such as Tata Power Renewables, Skyborn Renewables, PAG Renewables and Rezolv Energy.

Earlier this month, Mubadala also acquired a minority stake in Power Factors to support its global expansion.

The sovereign wealth fund, which manages assets of around $385 billion, continues to expand its presence across infrastructure and energy sectors as part of a diversified global investment strategy.

The Islamic Development Bank (IsDB) Group President, Muhammad Al Jasser, is visiting Azerbaijan from today to 8, as part of preparations for the IsDB Group Annual Meetings scheduled in Baku next month.

The visit comes ahead of the Annual Meetings, set to take place from June 16 to 19, 2026, under the theme “Regional Integration for Sustainable Prosperity,” and is aimed at strengthening cooperation between the IsDB Group and Azerbaijan.

During the trip, Al Jasser is expected to meet senior government officials and hold discussions on ongoing and future development initiatives.

The programme also includes visits to key development sites, such as the Alat Free Economic Zone, Aghdam Industrial Park, Garabagh University and education facilities in Fuzuli, reflecting a focus on economic and social development projects.

According to the IsDB, the visit is intended to deepen its partnership with Azerbaijan and support preparations for the upcoming Annual Meetings, which will bring together policymakers and development stakeholders from member countries.

Saudi Arabia’s real gross domestic product increased 2.8% year-on-year in the first quarter, according to flash government estimates issued on Thursday. 

Non-oil activities rose 2.8% while oil-related activities grew 2.3% year-on-year, data by the General Authority for Statistics (GASTAT) suggested. 

However, seasonally adjusted real GDP for the first quarter decreased 1.5% on the previous quarter, driven by a 7.2% decline in oil activities, as the implications of the Iran-US war come into play. Government and non-oil activities grew 0.8% and 0.2% respectively. 

“Oil activities were the main contributor to the decline in seasonally adjusted real GDP, -1.7 (percentage points). Non-oil activities and government activities each contributed 0.1 (percentage points),” the report added. 

Gulf oil exporters directly affected by the war face steep downward revisions of up to 15 percentage points this year. The International Monetary Fund has lowered its GDP growth prediction for the kingdom for this year and next. 

The Saudi economy is now expected to expand 3.1 percent this year, down 0.9 percent from the IMF’s last review in October, and 4.5 percent in 2027, up 1.3% from its October’s forecast. 

On balance, Saudi Arabia is assessed to be less sensitive to price increase versus decline in volumes compared to other GCC economies such as Kuwait, the fund said in its latest review. Hence, a 10% increase in oil prices or a 10% decline in export volumes will impact the current account by slightly more than 1 percentage point.

Saudi Arabia activated its East-West Crude Pipeline at full capacity for the first time in its 40-year history in the wake of the US-Iran conflict. The petroline - that runs 1,201 kilometres connecting the Abqaiq oil field in the eastern province to Yanbu on the Red Sea coast, was built during the Iran-Iraq war in the 1980s. 

Saudi Aramco confirmed last March that it had increased the pipeline’s capacity to seven million barrels a day. Exactly a year later, the petroline reached its full operational capacity. 
 

The United Arab Emirates will leave OPEC next month, its government said on Tuesday, ending decades of membership as it seeks greater flexibility to increase oil production during a period of geopolitical tension and market disruption linked to the Iran conflict.

The UAE, a member of the group since 1967 through Abu Dhabi, said the decision aligns with its long-term economic strategy and plans to expand energy investment. The move comes as oil markets face volatility and supply constraints, including disruptions to shipments through the Strait of Hormuz, a key transit route for global energy supplies.

“The U.A.E.’s decision to exit from OPEC reflects a policy-driven evolution aligned with long-term market fundamentals,” Energy Minister Suhail al-Mazrouei said in a social media post. “We thank OPEC and its member countries for decades of constructive cooperation.”

In a statement published by WAM, the government said leaving the group would provide greater “flexibility” and support its “long-term strategic and economic vision.” Officials added that constraints on shipping through the Strait of Hormuz mean the immediate market impact of the decision is likely to be limited.

The departure is expected to take effect on Friday and includes withdrawal from both OPEC and its wider alliance, OPEC+. The move reduces the group’s production capacity at a time when it has been managing supply to stabilise prices.

Before the current conflict, the UAE was producing about 3.6 million barrels of oil per day, accounting for roughly 12% of OPEC’s output, according to the International Energy Agency. Analysts say its exit could weaken the group’s ability to influence global markets over time.

Oil prices have risen sharply since the escalation of the Iran conflict, with Brent crude reaching as high as $119.50 a barrel. Prices were up 3.4%  on Tuesday at around $111.67.

The decision also highlights growing differences between the UAE and Saudi Arabia, OPEC’s leading member. The two countries have diverged on regional strategy and energy policy in recent years.

Tensions have intensified during the conflict with Iran. The UAE has faced repeated missile and drone attacks and has voiced dissatisfaction with the response from regional organisations. 

The UAE’s exit also aligns with broader criticism of OPEC from Donald Trump, who has accused the group of inflating oil prices and linked US security support for Gulf states to energy costs.

Despite leaving the group, UAE officials said the country would continue to increase production gradually, in line with demand and market conditions.

Middle East stock markets closed lower on Monday as rising tensions between the United States and Iran unsettled investors, amid concerns that a fragile ceasefire could collapse and disruptions in the Strait of Hormuz would persist.

Regional sentiment weakened after reports that Tehran rejected further negotiations with Washington, while the seizure of an Iranian cargo vessel by the U.S. added to uncertainty ahead of the ceasefire’s expected expiry.

Dubai’s main index fell 2.1%, ending a four-session rally, led by declines in property and transport stocks. Emaar Properties dropped 2.3%, while Salik Company fell 2.9%. Air Arabia closed 3% lower.

In Abu Dhabi, the benchmark index declined 0.8%, with Aldar Properties down 2.7%.

Saudi Arabia’s index lost 0.9%, weighed by a 1.2% fall in Al Rajhi Bank, while Saudi Aramco ended flat after early gains.

Elsewhere, Qatar’s index slipped 0.4%, with Qatar Islamic Bank declining 1.8%. Egypt’s benchmark index fell 1.1%, led by losses in Commercial International Bank.

Markets in Bahrain, Oman and Kuwait also recorded modest declines.

The ongoing conflict has disrupted energy markets, with traffic through the Strait of Hormuz largely suspended. Brent crude rose 4.8% to $94.75 per barrel as investors assessed supply risks.

Analysts said higher oil prices could provide some support to Gulf economies despite market volatility.

The conflict, now in its eighth week, has intensified concerns over regional stability. The United States has warned of further escalation, while Iran has threatened retaliation against regional infrastructure if tensions increase.

Reports also indicated that the United Arab Emirates has begun discussions with the U.S. on potential financial support mechanisms should the situation deteriorate further, although this could not be independently verified.

Investors are expected to remain cautious in the near term, with market direction closely tied to developments in the geopolitical situation and energy markets.

Pakistan has repaid $2 billion to the United Arab Emirates under maturing bilateral deposits, as the country navigates external financing pressures and debt obligations, a central bank official said on Saturday.

The repayment forms part of a broader $3.5 billion due to the UAE by the end of April, as authorities work to stabilize foreign exchange reserves with support from allied countries and an International Monetary Fund (IMF) program.

The outflow comes at a time when Pakistan’s reserves remain under pressure. As of March 27, foreign exchange reserves stood at $16.4 billion, covering roughly three months of imports. The repayment coincided with $1.4 billion in Eurobond obligations during the same period, highlighting ongoing strain on the country’s balance of payments.

To manage liquidity, Pakistan has relied on financial support from partner countries. Earlier this week, Saudi Arabia deposited $2 billion with the State Bank of Pakistan and agreed to extend the maturity of a separate $3 billion deposit, providing short-term relief to reserves.

Pakistan has also received financial backing from China and other partners as it works to meet conditions under its $7 billion IMF programme, which requires maintaining adequate reserve levels.

Officials have previously described repayments to the UAE as routine transactions under bilateral agreements, although they come amid tighter external conditions and ongoing financing needs.

Looking ahead, Pakistan is exploring a mix of funding options, including Eurobonds, Islamic sukuk, commercial borrowing and bilateral support, to manage upcoming repayments and maintain reserve stability.

Growth across the Middle East and North Africa region has bore the biggest brunt of the Iran conflict, significantly eroding regional output and progress. 

The MENA region’s growth is expected to slow down to 1.1% in 2026, from 3.2% last year, before recovering to 4.8% in 2027, as the region faces the most direct impact of the current war, the International Monetary Fund (IMF) has estimated. The region's 2026 growth forecast has been lowered by 2.8 percentage points from the fund's January projections. 

For commodity exporters directly affected by the conflict, diminished production and exports imply a severe downward revision of GDP growth projections for 2026, the fund said in its latest World Economic Output (WEO) update released this week. 

“The contraction of GDP growth for 2026 is therefore more pronounced for Bahrain, Iran, Iraq, Kuwait, and Qatar and less significant for Oman, Saudi Arabia, and the United Arab Emirates," the IMF said in its report. 

"For all these economies, growth in 2027 is expected to rebound, based on the assumption that energy production and transportation are normalized over the next few months - an assumption that may need to be revised if the duration of the conflict extends and the degree of damage suffered gets reassessed.”

The fund lowered estimates for Saudi Arabia’s GDP forecast for 2026 by 1.4 percentage point relative to January, to 3.1%, while revising it upward by 0.9 percentage point, to 4.5% for 2027.

Iran is among the worst hit countries in terms of downward growth revision, with its economy revised downward by 7.2 percentage points compared to IMF's January estimate, to -6.1% before rising sharply to 3.2% in 2027. 

In Egypt, growth is projected to slow to 4.2% in 2026 and recover to 4.8% in 2027, a cumulative downward revision of 1.1 percentage points.

"For commodity importers in the MENA, the terms-of-trade shock from higher commodity prices contributes to a somewhat modest downward revision of growth projections in 2026 and 2027, with some differentiation as a result of varying exposures to imports of energy, energy derivatives, and food items, as well as different economic trajectories before the conflict erupted," the report read. 

The fund has estimated global and regional growth under several operating scenarios. Under the assumption that the conflict will be relatively short-lived, global growth is expected to slow down to 3.1% in 2026 and 3.2% in 2027, down from 3.4% achieved last year. 

In case of a more protracted conflict, in which production and transport activities may take longer to resume than anticipated, the fund has taken two downside scenarios in consideration. 

In the adverse scenario - where oil prices would spike 80% and gas prices for Europe and Asia would rise 160% by the second quarter relative to the fund’s January baseline, as well as one-year-ahead inflation would soar by 50 basis points across advanced economies and 90 basis points in emerging markets by 2027 – global growth is estimated to drop to 2.5% in 2026 before rising to 3% next year. 

Global growth is estimated at 2% in 2026 and 2.2% in 2027 under a severe scenario in which oil prices would double while gas prices would rise 200% starting in the second quarter of 2026 relatively to the January WEO update baseline. Such a scenario would see one-year-ahead inflation spiking 100 basis points in advanced economies and 130 basis points in emerging markets by 2027. 

“The current hostilities in the Middle East pose immediate policy trade-offs: between fighting inflation and preserving growth and between supporting those affected by the rising cost of living and rebuilding fiscal buffers. Amid frequent global shocks, countries need to calibrate policies to ensure that they not only step up to the moment but also stand up to the next test,” the fund added.