MUSCAT : Titled “Charting AI Governance Future in the Arab Region: A Policy Roadmap,” the report positions AI and data governance as a key competitiveness strategy aimed at reducing uncertainty and enabling responsible technological growth across the region.
The roadmap highlights growing concerns among Arab companies regarding AI regulations. According to the findings, 49 per cent of companies remain unsure about the existence of AI regulations, reflecting a significant awareness and policy gap in the region’s digital ecosystem.
Meanwhile, 29 per cent of respondents said AI regulations improve security and trust, underscoring the role of governance in strengthening confidence around emerging technologies. However, businesses also pointed to operational and innovation challenges, with 23 per cent reporting increased operational costs due to regulations, while 21 per cent believe regulations may slow innovation.
The roadmap recommends practical policy pathways to help small and medium enterprises (SMEs) operationalise Responsible AI practices and strengthen trust among businesses, consumers, and governments. It also advocates for greater regional interoperability through cross-border policy alignment and shared risk management mechanisms.
The report notes that AI governance is increasingly becoming a defining factor in economic opportunity, digital sovereignty, and long-term competitiveness. It stresses that Arab nations must not only adapt to evolving global governance frameworks but also actively shape future international AI norms.
In addition to regulation, the roadmap calls for investment in what it describes as “full-stack ecosystem enablers,” including infrastructure, talent development, research and development, access to capital, and intellectual property frameworks.
The policy roadmap “Charting AI Governance Future in the Arab Region” warns that nearly half of Arab firms lack clarity on AI regulations, undermining responsible tech growth. Although some businesses see governance as enhancing trust, others report rising costs and innovation risks. The report calls for SME-focused Responsible AI measures, cross-border policy harmonisation, and broader ecosystem investments to secure digital competitiveness.