Middle East Drives Global AI Surge with Data Sovereignty Focus

A new study reveals that the United Arab Emirates and Saudi Arabia are setting the global standard for sovereign AI adoption, with regional enterprises achieving up to five times greater return on investment compared to their international counterparts. This strategic focus on data control and localization is positioning the Middle East as a powerhouse in artificial intelligence innovation and compliance.

Recent research conducted by EnterpriseDB highlights that organizations in the UAE and KSA lead the world in embracing sovereign AI principles, with 17% of enterprises classified as ‘Deeply Committed’, significantly above the global average of 13%. Sovereign AI refers to the capacity of businesses to manage, localize, and protect their data and artificial intelligence systems independently, without relying on external vendors or infrastructure. This approach not only ensures adherence to national regulations but also safeguards sensitive information while fostering an environment conducive to innovation.

The findings are closely tied to ambitious national frameworks such as the UAE National Strategy for Artificial Intelligence 2031 and Saudi Arabia’s Vision 2030, both of which prioritize AI as a cornerstone of economic advancement and competitive edge. By embedding sovereignty into their technological roadmaps, companies across the region are not only enhancing security and regulatory alignment but are also emerging as frontrunners in efficiency and trusted innovation.

According to the report, organizations that have fully committed to sovereign AI are reaping substantial benefits. These industry leaders are achieving a fivefold increase in ROI from AI initiatives, deploying twice as many mainstream AI applications, and expressing 2.5 times more confidence in their ability to dominate their respective sectors. In contrast, the majority of global enterprises, roughly 87%, are struggling with fragmented data systems, underutilized AI capabilities, and outdated infrastructure, putting them at risk of falling behind.

The comprehensive study gathered insights from 2,050 executives across 13 countries, including 175 in-depth interviews within the UAE and Saudi Arabia. An overwhelming 95% of enterprises worldwide expressed the intention to establish sovereign AI and data platforms within the next three years, though only a small fraction have realized this goal to date.

Kevin Dallas, CEO of EDB, emphasized the significance of these findings, stating that sovereignty over AI and data is the most critical factor in predicting success with generative and agentic AI. He noted that enterprises in the Middle East are not merely experimenting with AI but are scaling secure, compliant systems that deliver transformative outcomes.

Kash Rafique, General Manager for the Middle East and Africa at EDB, echoed this sentiment, attributing the region’s leadership to supportive government policies and a widespread understanding that data sovereignty is essential for growth across sectors like banking, energy, healthcare, and logistics.

For those interested in benchmarking their organization’s progress, a self-assessment tool is available alongside the full report.

EDB Postgres AI offers an open, enterprise-grade platform that supports sovereign data and AI requirements, enabling businesses to unify transactional, analytical, and AI workloads while maintaining full control over their environments. Known for high availability and hybrid management capabilities, EDB helps organizations future-proof their operations through secure and scalable solutions.

(Source: MEA Tech Watch)