For Middle East & Africa Banks, AI Isn't a Luxury, It's a Survival Strategy

Ahmed Abdelaal, CEO of Mashreq Group, emphasized that investing in technological infrastructure and advanced digital solutions is no longer a luxury choice. Instead, it has become a crucial strategic decision to ensure banks' continuity and competitiveness in a financial sector experiencing rapid transformations and constant shifts in customer expectations. Strategic Long-Term Investment During his participation in a panel discussion titled “Reimagining Banking in the Middle East and Africa – How AI is Leading the New Era of Financial Intelligence,” Abdelaal stressed that institutions hesitant to invest today might find themselves out of the picture tomorrow, given the speed of innovation and the accelerating pace of digital transformation. He explained that developing modern technical systems requires significant budgets and a long-term vision. He affirmed that the biggest challenge isn't just the size of the spending, but the nature of the return, as about 90% of early-stage technical use cases don't achieve a direct return on investment (ROI). This reality forces leaders to adopt a strategic perspective focused on building sustainable capabilities that enable institutions to adapt to the future instead of short-term calculations. Filtering the Noise and Focusing on Value Abdelaal pointed to the importance of “filtering the noise” from successive waves of technology, and not getting carried away by popular applications without a real assessment of their added value. He clarified that the success criterion for any tech investment must be its alignment with the institution's overall vision and long-term goals. He also emphasized that convincing boards of directors and shareholders of the viability of these investments is a fundamental step in the digital transformation journey, especially given the high costs and absence of immediate returns. Strong Infrastructure is a Prerequisite for Innovation He added that advanced solutions, whether in digital financial services or Blockchain technologies, rely on the strength and quality of the AI infrastructure. This makes investing in this technical foundation a prerequisite for any real innovation. He also stressed that keeping up with the new “technical language” is no longer an option, but a necessity for leading institutions in a rapidly changing global environment, where success depends on banks' ability to turn technological challenges into investment opportunities that enhance their competitiveness and ensure their sustainable growth.