Posted inOpinion

Catalyst for transformation: Why accelerating Cloud and AI adoption will help governments in the Middle East to drive growth and serve citizens better

The Middle East’s vision for growth, innovation, and prosperity hinges on how quickly and effectively governments can harness AI and cloud computing

Middle East’s dynamic economies
The Middle East’s vision for growth, innovation, and prosperity hinges on how quickly and effectively governments can harness AI and cloud computing Image: Shutterstock

In an era of rapid digital transformation, the latest advancements in technology serve as the backbone of efficient public services, effective governance, and economic growth. Across the Middle East, governments have taken commendable steps to embrace Artificial Intelligence (AI) and cloud computing.

However, to fully unlock the potential of these technologies and truly transform their societies, the pace of adoption has to accelerate. Now is the time for governments to double down on their AI and cloud strategies to meet the region’s ambitious growth goals and deliver a new era of citizen-centric services.

Why acceleration is critical

The Middle East’s dynamic economies and growing urban populations demand faster, smarter, and more resilient public services. While initial investments in AI and cloud have produced promising results, the scale of challenges that lie ahead — from managing urban growth to ensuring equitable healthcare and education — requires governments to move from selective adoption to full-scale integration of these transformative technologies.

According to Gartner, by 2026, over 70 per cent of government agencies will use AI to enhance administrative decision-making and track productivity improvements. The Middle East’s unique economic vision, where AI is expected to contribute over $320 billion by 2030, requires an even more urgent approach. Governments need to view AI and the cloud not as modernisation tools, but as the essential foundation for future prosperity and citizen satisfaction. Their efforts will mean that efficiencies generated by AI technology could support Middle Eastern government budgets by up to $7 billion annually.

Enhancing public services

We are already seeing AI and cloud redefine public services in the Middle East. In Qatar, Mowasalat, the nation’s end-to-end transport service provider, leveraged Microsoft Azure to develop scalable solutions that connect bus and taxi drivers with their supervisors. In addition to gaining real-time data visibility, the solutions also enabled faster decision-making, while providing deeper insights into the challenges faced by employees in the field. Similarly, the Bahrain Public Transport Company’s migration to Azure and the adoption of several cloud-based solutions helped reduce costs by 30 per cent, increase punctuality and reliability, while encouraging greater public use of transportation services.

These successes are commendable, but they have to be scaled. Governments should prioritise making AI and cloud solutions the default infrastructure for all public service delivery. This means not only adopting new technologies but embedding them deeply into every department, process, and interaction. Cloud-driven scalability and AI-powered insights can revolutionise transportation, utilities, and urban planning.

ahrain Public Transport Company’s migration to Azure and the adoption of several cloud-based solutions helped reduce costs by 30 per cent

Transforming education with AI

Education is the cornerstone of future economic growth, and AI can radically enhance how students learn and how institutions operate. Saudi Arabia’s Ministry of Education’s use of Azure for its Madrasati platform, which manages remote learning activities, conducts exams, and oversees additional educational courses, shows how cloud-based solutions can support millions of students and teachers.

And, Kuwait University‘s decision to host its Learning Management System on Azure to seamlessly conduct over 15,000 student examinations at the same time highlights the potential for efficient, scalable education. Meanwhile, Qatar’s Ministry of Education and Higher Education’s Talib chatbot is supporting students and their parents by answering their queries with a 99 per cent success rate.

Yet, the transformative potential of AI in education is only beginning. Governments need to focus on creating AI-driven learning experiences that go beyond administrative efficiencies. The UAE’s AI-powered tutor, developed with Azure OpenAI Service, is a model for how personalised learning can be achieved. Every education system in the Middle East should aim for similar innovations, ensuring that students are well-equipped for an AI-driven future.

Optimising citizen engagement and utilities

Effective governance is built on trust and engagement. AI-powered solutions like ALLaM, Saudi Arabia’s Arabic-language chatbot that engages with users and responds to their inquiries; and the Dubai Electricity and Water Authority’s (DEWA) Rammas chatbot, that is helping to improve service quality, demonstrate how AI can create more responsive, human-like interactions between governments and citizens.

Cutting-edge cloud solutions also empowered Kuwait Integrated Petroleum Industries’ (KIPIC) employees to become citizen developers. As a result, the employees developed over 50 projects that increased automation across the company, saving approximately 2,000 work hours. Such initiatives show what is possible, but they should be the baseline, not the ceiling. Governments should strive to deploy cloud and AI in every aspect of citizen engagement to foster deeper trust and satisfaction.

Dubai Electricity and Water Authority’s (DEWA) Rammas chatbot

Enhancing healthcare delivery

Across the region, healthcare professionals are under immense stress to provide quality care for their patients. In the UAE, the Department of Health – Abu Dhabi developed an AI-powered patient assistant that provides instant access to unified medical records, simplifies doctor searches, and streamlines appointment scheduling, making healthcare more efficient and accessible. Similarly, Saudi Arabia’s Ministry of Health, which manages up to 20,000 calls per day, used Azure AI to accelerate medical consultations and automate diagnostic reports for non-critical cases.

Accelerating AI adoption in healthcare is no longer optional and governments have to commit to widespread deployment for diagnostics, patient care, and health system management. Cloud infrastructure provides the security and scalability to make this happen, ensuring that healthcare is accessible, efficient, and resilient.

Technology to better serve citizens

The Middle East’s vision for growth, innovation, and prosperity hinges on how quickly and effectively governments can harness AI and cloud computing. The region has the potential, talent, and ambition to lead the world in government innovation. But realising this vision requires an unwavering commitment to accelerating the adoption of these technologies.

Microsoft is committed to helping governments achieve these goals. Our AI and cloud solutions, built on the principles of fairness, trust, safety, and accountability, provide the tools to transform services, empower citizens, and drive national development. The future is here. Governments that act decisively today will lead the transformation of tomorrow. The time to accelerate is now.

Follow us on

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Ihab Foudeh

Ihab Foudeh

Ihab Foudeh is a seasoned leader with over 30 years of experience in international business transformation and organizational capability building. As the General Manager for Microsoft Middle East, he is...