Why Investors are Paying Attention to These Middle East Industries Defying Growth Odds with Innovation

In recent years we’ve seen a rapid reimagining of the Middle East. What was once a region of traditional industries and oil reserves is now a hotbed of digital innovation that’s also helping to drive the next chapter of the AI revolution. 

As the tech industry has quickly come to realize how energy-intensive AI is to run at scale, the low-cost energy available across the Middle East in the form of solar power has sparked a new chapter of collaboration with the U.S. that’s also bringing huge investment sums to AI projects. 

Saudi Arabia’s  Public Investment Fund has already worked on AI-related projects with the likes of Google (GOOG) and Salesforce ((CRM), among others, and secured over $5 billion from (AMZN) for its AI venture Humain, along with US approval for thousands of microchips. 

The UAE is also a major player, with Microsoft (MSFT) investing $15.2 billion USD to fuel data centers and AI infrastructures in the country that will be central to scaling digital solutions for the tech giant.  

Yet it’s not just private corporate investments. Despite a global slowdown in VC funding, according to Bloomberg, companies in the Middle East nearly doubled the total amount fundraised in the first half of the year, raising $1.35 billion across the region. Government support and long-term strategy have played a key role, acting as a magnet for international investment, placing the region at the center of global investment momentum.

Technology support structures throughout the Middle East, including accelerators, incubators and venture studios, have also been key to the region's growth. Notable examples included Hub71 in Abu Dhabi, backed by the government and strategic partners such as Mubadala, the Abu Dhabi’s sovereign wealth fund, the Abu Dhabi Global Market (ADGM) financial free zone, and Microsoft. The Dubai International Financial Centre’s Innovation Hub has played a similar role. Leap 2026 is also becoming one of the region's most influential AI conferences, and a meeting ground for the global artificial intelligence community and the industries adopting it.

Over the past decade, the Middle East has transformed into one of the most dynamic regions for entrepreneurship. It is now witnessing a powerful shift toward technology-driven innovation, led by a new generation of companies. As the Middle East carves a new role as a global innovation powerhouse, here are six industries and companies to watch in 2026. 

A new chapter of AI innovation in the Middle East powered by solar 

It's no secret that the Middle East is positioning itself as a global AI innovation center. Governments in the UAE and Saudi Arabia in particular are funding AI-driven companies that enhance efficiency in healthcare, logistics, and finance. 

The UAE is spearheading this effort with its National AI Strategy 203, and the Dubai AI Campus is a prime example of how rapidly the region is building its critical mass in AI innovation. It’s the first and largest financial technology accelerator in the Middle East. 

Government programs also pay close attention to the energy needs associated with AI, embedding these within other sustainable initiatives. Perhaps the best-known example of a solar-powered data center is the UAE’s Moro Hub data center located in the Mohammed bin Rashid Al Maktoum Solar Park, which is one of the largest solar parks in the world. 

Planno is one company working to unlock more solar energy across the Middle East to power the AI revolution. DEWA’s Shams Dubai initiative paved the way for grid-connected rooftop solar, enabling net metering and streamlined approvals. Since then, the Emirate has built one of the most active solar rooftop markets in the Middle East. Planno uses geospatial AI to tap into the 4 GWp of untapped rooftop solar potential in Dubai alone, in addition to the company’s expansion into new markets.  

When it comes to publicly traded companies, one company to watch is Jinkosolar (JKS), one of the world's largest solar panel manufacturers that has a large presence in the Middle East.

A new chapter for sustainability in the Middle East, fueled by climate tech 

As part of a strategic shift away from oil dependency, Middle Eastern countries are investing heavily in solar and wind energy projects. According to PwC, players in the region spent about $5 billion USD on climate tech-related transactions globally in the year to end-September 2023. 

Meanwhile UAE has emerged as a champion of bold green tech projects, such as Masdar City, a fully sustainable urban development in Abu Dhabi. Initiatives also include new mandates for greener building regulations and a goal to see 75% of Dubai’s energy to come from clean sources by mid-century.

Governments in the MENA region are increasingly mandating or encouraging ESG reporting. In 2020, Bahrain launched voluntary guidelines with the Central Bank, and Saudi Arabia introduced sustainability guidelines in 2021. In 2022 UAE made it mandatory for 130 listed companies to report on ESG factors, while Qatar, Kuwait, and Oman have all enacted new ESG guidelines. 

Credibl ESG is one enterprise helping companies in the region cut carbon emissions and track operational data to release transparent ESG reports and remain compliant. In April of 2024, Credibl announced a significant partnership with HLB HAMT, a Dubai-based chartered accountant and advisory firm, to deploy Credibl's sustainability platform to its customer base across the globe, including the Middle East. This month the company also announced that Viral Thakker--after four years of leading Deloitte’s South Asia climate and sustainability practice-- had joined Credibl as Chief Business Officer.

This focus on sustainability and clean energy has created substantial opportunities for companies involved in renewable energy sources, waste management, and water conservation technologies.

MENA becomes fastest-growing region for fintech globally 

The fintech sector in the Middle East continues to evolve. According to data from McKinsey, there are now over 1,000 fintech companies across MENA, with four of these already achieving unicorn status, with more expected in the pipeline. The sector has also been a major pull for investors, helping to attract a lion's share of the record-breaking levels of VC funding flowing to the region. For example, between 2032 and 2024, the region secured $1.9 billion USD across 237 fintech deals.  

This has set the Middle East up to be the fastest-growing fintech region globally, with 35% annual growth expected up until 2028. Its become a focal point for policymakers and Egypt, Saudi Arabia and the UAE are emerging as fintech hubs.

Consumer demand is helping to accelerate the rise of fintech, driven by consumer demand for flexible financial solutions like "buy-now-pay-later" (BNPL) and the broader adoption of digital banking and payment platforms. The UAE's fintech industry, already a regional leader, is projected to grow annually, with numerous startups offering innovative payment solutions and investment platforms.

On the B2B side of the coin, we’re seeing the rise of fintech companies that solve specific roadblocks for companies when it comes to financing and payroll. EasyStaff is one example of this in action, helping payroll teams and freelancers internationally with complete compliance and a simple-to-use platform. 

A new era of digital health innovation and preventative care

The Middle East’s healthcare sector is booming. Buoyed by a growing interest in preventative care strategies and an openness to deploying emerging technologies, healthcare expenditure in the Gulf Cooperation Council (GCC) is predicted to reach $135.5 billion by 2027. 

The pandemic accelerated the adoption of digital health solutions, and the sector continues to boom. Driven by increasing population demands and government initiatives to modernize healthcare infrastructure, companies like Altibbi are providing innovative telemedicine and digital health services that improve access to care across the region.

McKinsey analysis found that more widespread adoption of digital healthcare solutions could unlock $15 billion to $27 billion more economic benefits to Saudi Arabia’s health system as a whole by 2030.

Digital innovations are also helping to transform the entire patient pathway in highly imaginative ways. Like many regions, generations of stigma around mental health in the Middle East means that patients don’t seek help or don’t know when their mental health is suffering. Kintsugi Health, which uses AI to overcome this barrier by detecting vocal biomarkers that are indicative of distress or depression, is one company to watch. 

Meanwhile, companies like Source Meridian are at the forefront of the telehealth revolution, with secure cloud infrastructures and software applications needed to scale these initiatives across the globe. In turn, the region's healthcare IT market is poised to reach $7.9 billion by 2028.

New era of corporate growth aided by AI in the workplace 

Outside of the above sectors, business is booming in general in the Middle East. The ongoing wave of innovation is also helping to make the region a compelling corporate hub, aided by pro-business regulation, strategic location and connectivity. Compared to other markets, the Middle East is often the most favorable location for corporate headquarters when multinational corporations look to expand into the region and tap into the young and growing consumer base. 

For these companies, AI and innovation is also reshaping the boardroom and providing the conditions for an efficient corporate workplace. Prezent AI is changing how executives approach presentations. The company’s platform uses AI to ensure messaging across large enterprises is on point to make sure that sales pitches and board meetings go off without a hitch. 

Rayda, another major platform serving enterprise teams across the region, is a fast-growing platform reinventing how companies manage physical assets across their organization. The company is automating asset tracking for organizations in the Middle East, helping reduce losses and giving visibility into everything from equipment to IT hardware in real-time. 

Another example can be found with MyUser, a fast-growing startup that is bringing intelligence to the lead generation and outreach process, to cut down the number of hours allocated to this business task. 

Presight AI Holding (PRESIGHT.AE), a publicly company listed on the Abu Dhabi Securities Exchange that specializes in big data analytics and AI-driven insights, is one company set to benefit from the growth in this industry.
 

With intelligent automations and a new class of AI agents, this bullish corporate growth is set to continue across the region. 

Cybersecurity emerges as a crucial pillar of digital transformation
 

As the adoption of AI, fintech, and cloud technology increases in the region, there is a growing need for cybersecurity to support the Middle East’s digital expansion. Infrastructure and data-centric businesses are exposing the region to more threats, leading governments and businesses to invest more resources in increasingly complex security options against cyber threats.
 

Companies like HiAware are increasingly filling this need with AI threat detection, real-time monitoring and automated insights, which help simplify enterprise level security. As companies become more sophisticated in their digital operations, the company, and other platforms like it, become an imperative for resilience, compliance and trust – all a new and growing investment opportunity for the region's innovation ecosystem.

Check Point Software Technologies Ltd (CHKP), a global leader offering a wide range of cybersecurity solutions, is one publicly traded company to also watch here.