Clouds, AI Agents and Moments: Middle East Digital Trends to Watch in 2025

This year, we predict that digitally advanced companies in the region will go all in on Cloud adoption, AI agents, and creating data-driven customer moments that matter.

As we enter 2025, thought leaders from Horizontal Digital share their insights on the three transformative trends reshaping business in the region.

Trend 1: AI agents – Empowering beyond brands

AI agents, autonomous software programs capable of performing tasks or making decisions on behalf of users, are set to dominate 2025. In the Middle East and Africa, AI agent market is projected to grow by 47% annually, reaching US$ 2.2 billion by 2030. These tools, like Salesforce’s Agentforce, will revolutionize commerce and extend their impact to individuals, governments, and social organizations.

“AI agents will empower individuals and organizations to achieve unprecedented levels of coordination and impact,” says George Smith, Regional Managing Director at Horizontal Digital.

In a 2024 UAE survey, respondents ranked tasks they’d like an AI assistant to perform as follows: manage smart home devices (57%), find information (54%), organise the day (54%), simplify everyday tasks and routine (51%) and play music that fits their mood (41%).

Personal AI agents will enhance consumer experiences by streamlining interactions and protecting privacy. Governments can deploy them to improve public services, from tax filing to crisis communication. While NGOs can use the software to optimize volunteer coordination and community outreach.

This transformative technology will redefine how people interact with businesses, governments, and communities, creating opportunities for improved efficiency and deeper connections.

Trend 2: Cloud adoption soars

The Middle East is experiencing a rapid surge in cloud adoption, driven by ambitious digital transformation goals. By 2027, 68% of companies in the region plan to migrate most operations to the cloud, enabling innovation and efficiency.

Local and global providers like AWS and Microsoft Azure are expanding their presence to meet data sovereignty requirements, ensuring personal, financial, and governmental data stays within national borders.

Cloud adoption supports government initiatives like Saudi Arabia’s Vision 2030 and the UAE’s Centennial 2071, empowering businesses to reduce costs, enhance security, and innovate rapidly.

In Saudi Arabia, the government’s Cloud First Policy mandates public entities to prioritize cloud solutions, driving efficiency across sectors. Tourism, a pillar of Vision 2030, benefits immensely. “By harnessing their data through cloud technology, travel, tourism and hospitality brands can deliver personalized experiences, make smarter decisions, and predict the next best offer for their clients,” says Joseph Bou Raad, KSA Country Manager, Horizontal Digital.

The UAE cloud computing market is also growing, with a projected 34% increase by 2029, reflecting the region’s commitment to a digitally driven economy.

Trend 3: Centralizing data to craft memorable moments 

“To create wow moments that surprise and delight, we need to understand our customers deeply – and that starts with centralizing and consolidating our data,” says Adam Dore, Horizontal Digital’s Senior Director of Digital Transformation for EMEA.

Unified, accurate data is the foundation of personalized customer experiences, yet many brands face challenges in achieving this. A Salesforce survey found that only 44% of UAE business leaders trust the accuracy of their data.

Centralizing data is especially vital for sectors like travel and hospitality. “Hotels and theme parks can integrate ticketing, booking, and inventory systems to gain a holistic view of their customers,” adds Dore. This enables brands to offer “wow” moments like tailored experiences, special deals, or upgrades for frequent travelers.

By consolidating data, businesses can enhance customer loyalty and deliver memorable, data-driven experiences that exceed expectations.

A unified vision for 2025

Cloud adoption, AI agents, and data centralization converge on one goal: delivering exceptional experiences through technology. Cloud infrastructure provides scalability, AI agents enhance personalization, and centralized data ensures actionable insights.

These trends demonstrate the Middle East’s commitment to digital transformation, driving innovation and supporting broader economic and societal goals. Horizontal Digital partners with forward-thinking companies to turn these ambitions into reality.

Ready to embrace the future?

The tools to transform your digital strategy are here. Whether migrating to the cloud, leveraging AI, or optimizing data, Horizontal Digital is your partner for extraordinary experiences. Let’s bring your digital aspirations to life.