GCC Generative Artificial Intelligence Market

GCC generative artificial intelligence market Size and Share:

The GCC generative artificial intelligence market size was valued at USD 316.1 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 4,043.60 Million by 2033, exhibiting a CAGR of 32.7% from 2025-2033. The GCC generative artificial intelligence market share is majorly driven by substantial government investments, strategic AI-focused initiatives, and rapid digital transformation, increasing economic diversification, rising demand for AI-driven solutions in sectors such as healthcare and finance, and an enhanced emphasis on innovation and global competitiveness.

The market in the GCC region is primarily driven by the increasing demand for AI-driven content creation and decision-making tools across industries. The rising integration of AI in sectors such as healthcare, finance, and retail are streamlining operations and improving customer experiences, which is significantly supporting the GCC generative artificial intelligence market growth. Notably, on 18^th September, 2024, Medvarsity announced the AI Revolution in Healthcare Summit (AIRH), scheduled to take place on February 15-16, 2025, at Expo City, Dubai. This is going to be the largest AI-focused healthcare summit in the GCC region, which is expected to gather over 1,200 top decision-makers including healthcare ministers, CEOs, and AI specialists. The summit will feature insights from more than 40 distinguished healthcare leaders on topics such as AI in personalized medicine, ethical challenges, and regulatory frameworks, aiming to explore the future of AI in healthcare. Moreover, the increasing interest in digital transformation in the GCC region, along with advancements in machine learning algorithms, is encouraging innovation and opening up new avenues for AI applications in various domains.

The market is further driven by the escalating demand for generative AI solutions, especially in areas such as natural language processing and image synthesis. In addition, strategic collaborations between technology vendors and government agencies are driving the adoption of AI, which is creating a positive outlook for the market. In addition, the growing investment in AI research and development is improving the capabilities of generative models, further strengthening GCC generative artificial intelligence market size. For instance, as per industry reports, the health care sector of the Gulf Cooperation Council (GCC) is highly improving, with estimates that the expenditure would be about USD 135 Billion in 2027. Saudi Arabia is contributing substantially, investing USD 50 Billion in digital health initiatives. These investments are driving the adoption of artificial intelligence and data-driven technologies, enhancing patient care, and positioning the region as a leader in healthcare innovation.

GCC Generative Artificial Intelligence Market Trends:

Incorporation of AI into Industry-Specific Applications

The GCC generative AI market is experiencing an enhanced emphasis on creating sector-specific applications, such as healthcare solutions tailored to individual needs and financial analytics. This trend fuels the demand for customized AI systems in the market, in line with the general market direction of using AI to solve sector-specific problems and reduce complexity. GCC generative artificial intelligence market forecast in this regard demonstrates the region's efforts toward innovation as industries are adopting generative AI to increase efficiency and provide better customer experiences. For instance, On June 5, 2024, as per a survey conducted by McKinsey, there is a significant increase in AI adoption around the globe with 72% of organizations incorporating AI in their activities against 55% reported in 2023. In this case, professional services registered the most considerable increase in the usage of AI.

Increasing Investment in AI Infrastructure

The investments in the AI infrastructure, such as cloud computing and data storage solutions, that underpin large-scale AI deployment is significantly shaping the GCC generative artificial intelligence outlook. This increase in investment is meeting the rising market demand for robust systems capable of supporting complex generative models. For instance, on December 4, 2024, it was reported that the Gulf Cooperation Council (GCC) expects AI-driven "sportainment" to generate up to USD 8.5 Billion in economic value by 2030. This projection is part of a broader trend, with the global sports AI market expected to reach USD 19.2 Billion by the same year. The sports economy of the GCC is rapidly changing, with more than USD 65 Billion in investments from governments, especially in Saudi Arabia and the UAE, to make the region a global sports hub. These trends in the market are toward scalable and efficient AI platforms, allowing companies within the region to harness the transformative power of generative AI.

Emphasis on Ethical AI Development

The GCC generative artificial intelligence market demand is witnessing a rise in ethical AI practices due to regulatory frameworks and consumer demands for transparency. This shift towards ethical AI development is further driven by the increasing global scrutiny on data privacy and algorithmic accountability. In the GCC, businesses are recognizing the importance of aligning AI practices with international ethical standards, such as ensuring non-discrimination, promoting data sovereignty, and reducing bias in machine learning models. This is transforming the market landscape as businesses are more interested in creating trustworthy and unbiased AI systems. Addressing this aspect of market demand, companies are adopting practices that ensure compliance and improve user trust, marking a significant shift in GCC generative artificial intelligence market trends toward responsible AI innovation across industries.

GCC Generative Artificial Intelligence Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the GCC generative artificial intelligence market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on offering type, technology type, and application.

Analysis by Offering Type:

• Image
• Video
• Speech
• Others
   

The GCC generative AI market is using image generation technologies to support industries such as advertising, design, and healthcare. The importance of image generation is that it simplifies creative processes, reduces costs, and delivers customized solutions. These technologies enable the creation of realistic images for simulations, medical imaging, and marketing campaigns, which, in turn, is providing an impetus to the market.

Video generation is revolutionizing content production, particularly within the media, entertainment, and e-learning industries. AI-powered tools produce high-quality videos tailored to specific audience needs, enhancing engagement and efficiency. The importance of video representation is evident in its role in modernizing communication, improving accessibility, and supporting businesses in delivering impactful messages, driving innovation across diverse applications.

Speech technologies are gaining prominence in the market, with applications in customer service, education, and accessibility. AI-driven speech synthesis and recognition tools enable personalized experiences, language translation, and voice-enabled interfaces. The importance of speech representation lies in its potential to bridge communication gaps, improve user interactions, and create inclusive solutions, making it indispensable for advancing AI-powered ecosystems in the region.

Analysis by Technology Type:

• Autoencoders
• Generative Adversarial Networks
• Others
   

Autoencoders play a vital role in the market as it helps with improving the data compression and feature extraction for complex datasets. Their capability to learn efficient data representations supports applications in image reconstruction, anomaly detection, and unsupervised learning, making them invaluable for industries such as healthcare and finance, where accurate data analysis is crucial, thereby fostering the adoption of generative AI across the region.

Generative Adversarial Networks (GANs) are getting importance in the GCC generative AI market, due to their capability to create realistic synthetic data and innovative applications in content creation, image synthesis, and virtual simulations. They play an important role in media, retail, and entertainment sectors to satisfy demands of high-quality AI-generated content. GAN is driving the ongoing transformative advancements in realistic image synthesis, video generation, and natural language processing, which in turn is reinforcing market growth and potential.

Analysis by Application:

• Healthcare
• Generative Intelligence
• Media and Entertainment
• Others
   

The healthcare industry is gaining traction in the GCC market due to the region's focus on using AI for advanced diagnostics, personalized treatment plans, and streamlined administrative processes. Generative AI allows healthcare providers to analyze vast datasets, improves medical imaging, and predict patient outcomes with greater accuracy. This integration is crucial for addressing the increasing demand for efficient healthcare solutions and ensuring better resource allocation in the region.

The core of the GCC's AI progress lies in generative intelligence as it is driving innovation in content creation, data synthesis, and automation across industries. It can create very realistic simulations and generate human-like interactions, which are revolutionizing customer service and virtual assistance sectors. The growing adoption of this technology highlights its importance in enhancing operational efficiency and fostering innovation, positioning generative intelligence as a transformative force in the region.

The media and entertainment sector within the GCC is being accelerated in terms of content creation, personalization, and audience engagement through generative AI. This new form of AI-generated media, from virtual influencers to dynamic storytelling, is essentially rewriting the way content is produced and consumed. This technology offers the sector the main mandate to meet increasing demand for innovative, interactive, and exciting experiences, making it a strong contributor to growth and creativity in the entertainment landscape of the region.

Regional Analysis:

• Saudi Arabia
• UAE
• Qatar
• Bahrain
• Kuwait
• Oman
   

Saudi Arabia is one of the significant players in the GCC generative AI market, considering that the Vision 2030 plan focuses on technology innovation and digital transformation. Substantial investments in research, education, and infrastructure on the part of the government drive the adoption process across sectors in healthcare, finance, and logistics. Public-private partnerships foster cutting-edge AI application development in the country, leading to a first-mover advantage in the regional AI landscape.

The UAE is a prominent contributor to the market, due to its strong digital infrastructure and the active efforts of the government in adopting proactive strategies such the National AI Strategy 2031. Its AI ecosystem has robust support for innovation in sectors such as tourism, real estate, and transportation. Moreover, the escalating startup culture along with strategic partnerships with other nations has positioned the UAE as a benchmark in the integration of AI and fostered a competitive environment for generative AI solutions.

Qatar is progressing well in the market due to an initiative on AI-driven smart city development, particularly within the framework of Qatar National Vision 2030. The nation taps into various sectors such as education, healthcare, and sports through the application of AI technologies. The FIFA World Cup has been a platform for Qatar to innovate AI-driven analytics and event management. Through its digital transformation strategy, Qatar is an emerging hub for making a mark for generative AI adoption in the GCC region.

Bahrain is contributing to market through its supportive regulatory framework and growing investment in AI-based technologies. The country's focus on fostering a fintech-driven economy is driving the adoption of generative AI in financial services. Bahrain's partnerships with international tech firms and commitment to digital transformation are enabling the development of AI solutions tailored to its economic diversification goals, strengthening its role in the regional AI landscape.

Kuwait is picking up pace in the market by focusing on AI implementation in public sector services and national development projects. The government's efforts to develop AI applications in education, healthcare, and energy sectors are making the process more efficient and innovative. The growing investment in AI training and research in Kuwait is helping it become a major contributor to the region's AI progress and digital economy.

Oman is steadily expanding its footprint in the market by integrating AI technologies into its economic diversification strategies under Vision 2040. The nation is using AI to optimize logistics, energy management, and tourism, leading to enhanced operational efficiency. Oman's focus on building a skilled workforce and fostering partnerships with global AI leaders is strengthening its position as a growing market for generative AI solutions in the region.

Competitive Landscape:

In the GCC (Gulf Cooperation Council) market, key players in the Generative AI (GAI) space are focusing on several strategic initiatives. Companies are investing in the development and deployment of AI-powered solutions tailored to regional industries, such as oil and gas, healthcare, finance, and retail. These solutions include automating content creation, enhancing customer service with AI chatbots, and optimizing operational processes with predictive analytics. There is also a growing emphasis on creating localized AI models to address cultural and language needs. Additionally, strategic partnerships with governments and educational institutions are being forged to support AI research and development, driving innovation across the region.

The report provides a comprehensive analysis of the competitive landscape in the GCC generative artificial intelligence market with detailed profiles of all major companies.

Latest News and Developments:

• On January 3, 2025, the Dubai Electricity and Water Authority (DEWA) launched a comprehensive roadmap to integrate generative artificial intelligence (AI) across all its operations, aiming to enhance operational efficiency and customer satisfaction.  This strategic framework includes the implementation of Microsoft Copilot, a smart assistant designed to improve performance and productivity.  DEWA's commitment to innovation aligns with the UAE National Strategy for Artificial Intelligence 2031, reflecting a dedication to adopting advanced digital solutions for sustainable growth in the energy and water sectors. 
• On September 10, 2024, at the Global AI Summit in Riyadh, the Digital Cooperation Organization (DCO) unveiled its Generative AI (GenAI) Center of Excellence (CoE), an initiative spearheaded by Saudi Arabia. The CoE seeks to position DCO member states as leading innovators in the global GenAI space by encouraging collaboration and advancing sustainable, inclusive development. DCO Secretary-General Ms. Deemah AlYahya underscored that the initiative offers a platform for member states to shift from being consumers to active producers of GenAI solutions, making them global leaders in GenAI innovation and hubs of intellectual property.
• On September 12, 2024, the Dubai Electronic Security Center (DESC) introduced the Dubai AI Security Policy at the inaugural Dubai AI & Web3 Festival 2024.  The policy is designed to increase confidence in AI technologies, foster their growth, and reduce cybersecurity risks, including those related to generative AI models. This initiative falls in line with the aim of positioning Dubai as a global hub for AI by 2031, according to the UAE National Strategy for Artificial Intelligence 2031.
• On August 6, 2024, Oracle announced the launch of its second public cloud region in Riyadh, Saudi Arabia, as part of a USD 1.5 Billion investment to enhance the country's cloud infrastructure. This will support Saudi Arabia's AI economy, which is expected to hit USD 135.2 Billion by 2030, by delivering high-performance cloud services to speed up AI innovation and business resilience. The new Riyadh region complements the existing Jeddah region and the planned NEOM region, offering a comprehensive suite of more than 100 cloud services, including Oracle Autonomous Database, HeatWave MySQL Database Service, and OCI Generative AI service.

GCC Generative Artificial Intelligence Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the GCC generative artificial intelligence market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the GCC generative artificial intelligence market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the GCC generative artificial intelligence industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.