The UAE and Saudi Arabia have emerged among the world’s most advanced adopters of agentic artificial intelligence — a new generation of AI capable of making decisions and performing tasks independently — with more than a third of organisations already deploying the technology in live business environments.
According to Confluent’s 2026 Data Streaming Report, 38 per cent of organisations in both countries have agentic AI solutions running in production, placing the Gulf among the global leaders in translating AI ambition into operational reality.
Unlike traditional AI systems that primarily respond to questions or generate content, agentic AI can analyse information, make decisions and execute actions with minimal human intervention.
For example, while a conventional AI assistant might recommend travel options, an agentic AI system can search for flights, compare prices, make bookings, update calendars and complete transactions automatically based on a user’s instructions.
The report, based on a survey of 4,625 IT leaders worldwide, indicates that Gulf enterprises are rapidly moving beyond experimentation and pilot projects to large-scale deployment of AI systems capable of autonomously managing increasingly complex business processes.
The strong adoption figures align with the broader digital ambitions of both countries. The UAE has invested heavily in artificial intelligence through its National AI Strategy and a growing ecosystem of AI-focused institutions, while Saudi Arabia continues to accelerate investment under Vision 2030 as part of its drive to build a diversified, technology-led economy.
However, the study suggests that the region’s success is not merely the result of aggressive AI adoption. Organisations in the Gulf appear to have developed a clear understanding of the infrastructure needed to make AI work effectively at scale.
The survey found that 95 per cent of IT leaders in both the UAE and Saudi Arabia believe data streaming platforms can accelerate AI adoption, while an identical percentage expect such platforms to increase the value and impact of their AI investments.
Industry experts say this reflects a critical shift in thinking. Agentic AI systems depend on continuous access to fresh, accurate and contextual data to make autonomous decisions. Without real-time data flows, even the most sophisticated AI models struggle to deliver reliable outcomes.
That understanding is increasingly shaping investment priorities across the region. Data streaming has emerged as a higher strategic priority than AI and machine learning technologies themselves, with 90 per cent of UAE respondents and 88 per cent of Saudi respondents identifying it as a key business focus.
The findings point to a growing recognition that the success of AI initiatives depends less on the algorithms themselves and more on the ability to deliver trusted, real-time data across organisations.
Despite the rapid progress, Gulf enterprises acknowledge that significant challenges remain.
Nearly three-quarters of IT leaders in both countries reported facing at least three major obstacles to AI adoption. The most commonly cited challenges include insufficient infrastructure for real-time data processing, concerns about data lineage and quality, and shortages of AI and data-related skills.
More than two-thirds of respondents also identified data infrastructure and data quality as major barriers to deploying agentic AI successfully.
Technology analysts note that these challenges are becoming increasingly common worldwide as organisations transition from experimentation to production. While many businesses have invested heavily in AI tools, fewer have modernised the data foundations required to support continuous intelligence and autonomous decision-making.
Karim Azar, AVP and General Manager at Confluent Middle East, said the findings demonstrate the maturity of the Gulf’s AI ecosystem.
“What the UAE and Saudi Arabia data tells us is genuinely encouraging. These are markets that have moved decisively from AI experimentation into deployment, and their IT leaders have a clear view of what comes next,” Azar said.
“The focus on data streaming as a strategic priority reflects an understanding that sustaining AI performance at scale requires the right data infrastructure underneath it. Backed by commendable government investment and vision, the Middle East is well positioned to lead that next phase.”
The report also found that 95 per cent of respondents in both countries believe data streaming platforms can help overcome agentic AI deployment challenges by making information more trustworthy, contextualised and discoverable.
Shaun Clowes, Chief Product Officer at Confluent, said the findings reflect a broader challenge facing enterprises globally.
“Most organisations do not have an AI investment problem; they have a data problem,” Clowes said. “AI systems depend on fresh, accurate and contextual information, but too many are still being built on fragmented data, batch processes and infrastructure that was not designed for continuous intelligence.”
As businesses worldwide race to deploy increasingly autonomous AI systems, the report suggests the next competitive advantage may not come from having the most advanced AI models, but from building the strongest real-time data foundations. In that regard, the UAE and Saudi Arabia appear to be gaining an early lead.
