UAE Banks prepare for AI-driven revolution in financial services

Emirates NBD, the largest bank in Dubai by assets, currently has over 150 AI initiatives underway, with 65 already implemented. The bank, which is majority government-owned, is allocating roughly 50% of its technology budget to AI, a strategic shift recognized by the Evident AI Index for Banks – Middle East & Africa, where it was ranked first in June.

In a significant development last month, Emirates NBD became the first bank in the Middle East and North Africa (MENA) region to deploy OpenAI’s GPT models using local infrastructure. This allows for advanced language models to be utilized while adhering to UAE data residency and regulatory requirements. The bank intends to leverage these models to improve customer experiences, bolster risk management, automate processes, and enhance employee productivity. “Banking will transform more in the next five years than it transformed in the last 30 years,” stated Miguel Rio-Tinto, Emirates NBD’s Group Chief Digital and Information Officer.

One of the most pressing areas of transformation is cybersecurity. The volume of critical security flaws requiring evaluation has dramatically increased, rising from approximately 1,000 per month in early 2025 to around 15,000 last month. Emirates NBD is proactively addressing this by employing an OpenAI model to identify vulnerabilities in its own systems.

The heightened geopolitical tensions following the US-Iran war on February 28 have amplified cybersecurity risks in the region. Daily attempted cyberattacks in the UAE reportedly surged from approximately 200,000 to as many as 700,000. In July, the UAE successfully defended against sophisticated cyberattacks targeting the financial sector.

Commercial Bank of Dubai (CBD) is also actively pursuing AI integration, announcing several strategic technology partnerships at the summit. These collaborations with Microsoft, Silent Eight, Comarch AI Wealth, Zamp, Harvey, Sirion, and Flank will focus on AI adoption, compliance, risk management, digital wealth platforms, and legal infrastructure. “We are moving away from traditional AI applications towards adopting agentic AI,” explained Thomas Cherian, CBD’s chief technology and services officer. “This will help us accelerate service delivery and provide superior customer experiences.”

Agentic AI, which allows for autonomous decision-making and task execution, is a key focus for both banks and the UAE government. The UAE aims to transition 50% of federal government operations to agentic AI by 2028, while Dubai has launched a two-year plan to accelerate adoption in the private sector. Cherian estimates that AI agents could handle 55% to 60% of operational tasks at CBD, with human oversight remaining for approvals.