Despite talk of AI bubble, Gulf nations maximizing its use, says expert

In Saudi Arabia they have introduced AI to all aspects of society. (FILE/AFP)
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Updated 13 October 2025
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Despite talk of AI bubble, Gulf nations maximizing its use, says expert

  • AI helping in Saudi World Cup stadium design, says Steven Schain
  • Gulf is investing properly, unlike those that have ‘wasted’ millions

NASHVILLE, USA: Companies have blindly invested in artificial intelligence before establishing their actual needs, which has led to millions of dollars being “wasted,” a leading expert has told Arab News.

A recent survey revealed that sentiment in AI technology had dropped in the Middle East as companies began to realize they had onboarded the technology without first establishing its role within their organizations.

But in projects such as the design of Saudi Arabia’s 2034 World Cup stadiums, the technology was being put to good use, including how to give the perfect view from every seat. This is something many football clubs around the globe will admit has not been previously achieved.

Depending on who you listen to, the AI bubble is either about to burst or diversify.

Journalist Will Lockett wrote in Medium.com on Sept. 15 that the “AI bubble is ripe for bursting,” adding that the “AI models we have now are about as good as they will ever be.”

But Amazon founder Jeff Bezo took a more optimistic line, CNBC reported last week, saying the “technology is real” and would bring “big benefits to society.”

It is a view shared by Steven Schain, founder of AI Performance Partners, who speaking on the sidelines of the recent Autodesk University 2025 in Nashville.

Schain said Gulf nations were adopting the correct approach by properly training organizations and individuals in using AI.

Officials in Saudi Arabia and the UAE have said in recent months that they plan to invest heavily in AI training and education.

Schain said that if sentiment in AI had dropped, it was an indication that it was being overused in the first place. “What is happening now is that there is a more refined use of AI,” he said.

He added: “The design and building of the Saudi World Cup stadiums is being enhanced as a result.

“Because basically, rather than people messing around with AI, these guys are able to go and look at different stadiums and design the ultimate stadiums so that, for once, every single seat has the perfect view; they’re still doing the research work.”

There has been a slight decline in the region’s enthusiasm for the technology but the outcome has been quite positive, he added.

“From what I’ve seen, people are starting to finally realize what AI can do in their companies.”

He said that previously the view among certain firms had been to invest large amounts of money and working hours into AI without having any real direction to their approach.

And now “a lot of people are realizing they wasted a lot of time and money.”

“So what’s happening is now these companies are taking a step backwards and looking at where it fits.”

He said companies were starting to say: “‘We just did this all wrong. We put it out there too fast. We’ve wasted time, we wasted all this money.’”

Instead, Schain said, business chiefs were beginning to create teams of people that understand AI — ultimately saving time and potentially millions of dollars.

With any research there is a cost, but Schain said the Gulf was the perfect place because of its wealth.

“AI is a great tool because you can do 10 times the amount of work within the same amount of time. And you can solve problems that you would have never thought of.”

Schain said this was what was happening with AI in design.

“It’s coming up with concepts and ideas that an engineer or a product designer or architect would never have thought of, or not had the time to think of.”

As AI is developed, especially by companies such as Autodesk, he said the process of design to production and build had the potential to become more cost efficient.

Technology such as 3D imaging, made possible through AI, would help take a one-dimensional image from an idea on paper to its creation. AI was also useful for quality control.

He did not believe this would lead to widespread job losses. People would have to adapt and there would always be a role for them.

In the US alone there was a need for 500,000 new jobs in the trade professions over the next 10 years.

“AI can’t replace those jobs ... physical labor,  such as plumbers, electricians, welders. Those are jobs that AI is not taking.”

Instead he said the first jobs starting to go are white collar roles such as programmers, artists and concept designers — those in conceptual fields and visual arts.


Accelerating growth boosts investor confidence

Updated 06 December 2025
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Accelerating growth boosts investor confidence

  • Startups attract fresh capital to scale AI, health tech, and infrastructure

RIYADH: Startups across the Middle East and North Africa are accelerating growth through strategic funding rounds, partnerships, and technological innovation. 

From agriculture tech and AI-led cybersecurity to digital health and home renovation, this week’s developments reflect the region’s expanding startup ecosystem and investor confidence across key verticals.  

Saudi agritech startup Nabt has raised $3.4 million in a seed extension round, bringing its total funding to $5 million.  

The round was led by SHG Group, with participation from Merak Capital and several angel investors, signaling strong investor confidence in the company’s long-term growth strategy.  

The funding announcement took place during a signing ceremony at the Sunbola program event under the Ministry of Environment, Water, and Agriculture.  

Founded to build both physical and digital infrastructure for the fresh-produce sector, Nabt connects farmers directly with commercial buyers through fulfillment centers that handle sorting, cold storage, and last-mile logistics.  

The company recently launched the Nabt Online Auction to support large-scale produce trading across the Kingdom, and Nabt Intel, which provides real-time pricing and market-demand data. 

CEO Abdullah Al-Otaibi said: “In just two years, Nabt has proven that building transparent and efficient infrastructure for fresh produce is not only possible but essential.”  

The new capital will support expansion into additional Saudi cities and further develop Nabt’s infrastructure and services to boost food security and farmer profitability across the country.   

COGNNA raises $9.2m 

COGNNA, a Saudi cybersecurity company founded in 2022, has closed a $9.2 million series A round led by Impact46 and co-led by BNVT Capital, with participation from Vision Ventures and Tali Ventures.  

The company offers AI-driven security operations tailored for enterprises and SMEs through its Agentic SOC platform.  

Combining AI automation with human oversight, COGNNA’s platform helps organizations simplify compliance and proactively defend against cyber threats. 

Chief Technology Officer Ziyad Al-Sheri stated: “Through our AI-led platform, we are building an Agentic SOC that doesn’t just respond to threats — it anticipates them.”  

The funding will be used to accelerate global expansion, enhance R&D in AI automation, and scale operational teams and infrastructure to meet growing demand. 

The company plans to allocate capital across product development, marketing, hiring, and international operations.  

Funch raises $500k 

Funch, a Dubai-based AI-native lunch subscription startup, has secured $500,000 in a pre-seed round led by Angelspark, with participation from investors including Mostafa Kandil, Mahesh Murthy, and Tushar F.  

Founded in 2025 by Ahmad Joehnny and Ghada Zanaty, the platform offers flexible, credit-based lunch subscriptions for 19 Emirati dirhams per day with no delivery fees. 

Founded in 2025 by Ahmad Joehnny and Ghada Zanaty, Funch offers flexible, credit-based lunch subscriptions with no delivery fees. (Supplied)

Funch replaces traditional meal plans with a system where users can pause, skip, or cancel orders while using credits only when meals are delivered.

“Our model is built around pre-planned orders, enabling us to operate with higher efficiency, reduce waste, and cut emissions with fewer trips,” said co-founder and chief operating officer Ghada Zanaty.  

The company leverages AI to forecast demand, optimize routes, rotate menus, and streamline logistics, and will use the funding to scale across Dubai and develop its AI systems further. 

Paymob teams up with Robusta 

Egyptian fintech Paymob and software development firm Robusta Technology Group have announced a strategic partnership to accelerate digital transformation across Egypt and the wider region.  

The collaboration will integrate Paymob’s digital payments infrastructure with Robusta’s AI-driven product development and analytics capabilities.  

The joint initiative aims to deliver intelligent digital experiences for SMEs and enterprises, supporting Egypt’s Vision 2030 goals. 

Both companies plan to expand regionally and develop future offerings combining automation, analytics, and seamless payment systems to improve operational efficiency for merchants and startups.  

Reno raises $4m

UAE-based renovation technology platform Reno has raised $4 million in a mix of equity and debt funding.  

The round included investments from Sanabil 500, Hub71, and Plus VC, as well as Zero 100 VC, FlyerOne Ventures,  and Sandstorm VC. AngelSpark and Swiss Founders Fund also invested.

Founded in 2024 by Marc Michel, Amr Hosny, and Farah Karabeg, Reno offers a tech-enabled, end-to-end solution for interior design and renovation services in both residential and commercial sectors.  

Reno aims to streamline the renovation process through a unified digital platform, allowing customers to manage projects from planning through execution.  

The company plans to use the new capital to expand across the GCC region, enhance its technological infrastructure, and further develop its customer experience. 

Glenwood PE and Mubadala invest in Korean desalination firm NanoH2O

Glenwood Private Equity and Abu Dhabi’s Mubadala Investment Company, along with co-investors, have completed a co-investment in NanoH2O, a Seoul-based reverse osmosis membrane manufacturer previously operating as LG Water Solutions under LG Chem.  

All closing conditions and regulatory approvals for the investment have been fulfilled.  

NanoH2O, which became an independent entity in 2024, supplies desalination and brackish water treatment solutions to municipal and industrial clients worldwide. More than 95 percent of its revenue is generated outside South Korea. 

“We have strong conviction in NanoH2O’s technology leadership and long-term growth potential,” said Mohamed Al-Badr, head of Asia at Mubadala.  

The firm aims to support NanoH2O’s global expansion, particularly in the MENA region, amid growing concerns over water security and decarbonization.