AI, Digital Consumers & Trust: The Future of GCC Commerce

Businesses across the Gulf Cooperation Council are entering a new era defined by digital-first consumers, artificial intelligence, and modern infrastructure. Companies that focus on delivering seamless, end-to-end customer experiences while building unwavering trust are positioned to lead this next wave of commercial growth. The region’s retail sector is projected to surpass $390 billion by 2028, growing at a compound annual rate of 4.6 percent, while the e-commerce market is expected to reach nearly AED50 billion in the same timeframe.

This transformation is propelled by long-term national development plans, shifting consumer habits, and strategic investments in technology. A senior payments executive observes that three main forces are at work: a consumer base that increasingly prefers digital payments and shopping, the expanding role of AI in commerce, and the rollout of advanced payments infrastructure.

Digital-first consumers are setting the pace. In the United Arab Emirates, over one-third of consumers use their mobile phones for online shopping—the highest rate anywhere in the world. The adoption of digital tools is accelerating rapidly. Mobile commerce and cashless payments have reached levels in just a few years that took other markets much longer to achieve. This represents not just growth, but a complete shift in behavior. In Saudi Arabia, cashless transactions accounted for 79 percent of all payments by the end of 2024, meeting a key national development goal.

Artificial intelligence is fundamentally changing how people discover, evaluate, and buy products. According to one forecast, AI will contribute 19 percent of the Middle East’s retail GDP by 2030—the highest share of any major economic sector. While AI once helped improve search results and recommendations, it now influences purchasing decisions much earlier in the customer journey. AI is shaping what consumers decide to buy and how they pay, sometimes even before they begin actively browsing.

Looking forward, business leaders should monitor the speed at which AI agents—autonomous systems that perform complex tasks with little human input—are adopted. These agents could soon handle routine buying decisions for consumers, compressing the shopping journey from hours to moments. Payment companies are already developing platforms that allow AI agents to browse, select, and purchase items on behalf of consumers, creating a more personalized and efficient commerce experience.

Infrastructure modernization is another critical driver. Governments and financial institutions are investing heavily in new payment systems, recognizing that outdated technology stifles innovation, raises maintenance costs, and limits fraud detection. Many banks still rely on systems built decades ago, before AI existed. The opportunity now is to move directly to cloud-native, modular platforms that help financial institutions launch products faster, scale efficiently, and adapt to changing market conditions.

Investments in next-generation platforms integrate card issuing, transaction processing, and core banking into a single cloud-based system. This approach goes beyond simply upgrading payment networks—it enables financial institutions to reduce operating costs and deliver real-time, personalized services.

The seller ecosystem is also expanding rapidly. Technology has dramatically lowered the barriers to becoming a merchant. Across Central Europe, the Middle East, and Africa, the number of locations accepting digital payments more than tripled in three years, reaching 13 million by 2024. Today, anyone from content creators to small shop owners can become a seller. Digital tools and embedded payments have erased traditional obstacles. The distinction between online and offline retail is fading, and every seller must be prepared to transact wherever their customers are.

In a marketplace where customers can switch brands with a single tap, earning loyalty has become a strategic imperative. Consumers will quickly move on if they don’t feel understood, pushing brands toward hyper-personalization. Retention is now just as important as acquisition. It’s about using data and technology to deliver the right offer, at the right time, and in the right way.

Payment providers support this through end-to-end personalization at scale, combining data insights, campaign tools, consulting, and digital platforms to create tailored promotions. They also help businesses connect emotionally with customers through sponsorships in sports, entertainment, music, and gaming—areas where strong affinities can foster lasting loyalty.

Trust and security form the foundation of this digital acceleration. Nearly half of UAE consumers report having fallen for an online scam, and global cybercrime costs are projected to reach $10.5 trillion this year. Protecting customer trust has never been more critical. Without it, loyalty can vanish instantly. As fraudsters grow more sophisticated, security must cover the entire payment journey, not just one part of it.

Advanced AI-powered security suites now protect every transaction, both on and off major payment networks. These solutions use multiple AI models embedded across more than 100 products, translating risk signals into actionable scores that enable faster, smarter decisions. Recent acquisitions have further enhanced these capabilities, adding real-time behavioral profiling across devices, accounts, cards, and merchants to detect complex, multi-channel threats.

The GCC is not merely adapting to change—it is actively shaping the future of commerce. By embracing digital-first consumers, harnessing AI, and investing in modern infrastructure, businesses that prioritize seamless customer experiences and steadfast trust will define the next phase of regional commerce.

(Source: Economy Middle East)