AI tipping point reached in the UAE as banks move from experimentation to execution, finds Finastra research
- AI, modernization and rising customer expectations move to the top of the agenda across the Middle East
- Security investment expected to rise sharply in 2026, with UAE among global leaders
- Industry confidence remains high despite disruption
Dubai, UAE – February 10, 2026 – Financial institutions across the UAE have reached a decisive AI tipping point, according to new research from Finastra, a global leader in financial services software. Just 2% of financial institutions globally now report no use of artificial intelligence, signaling a clear shift from experimentation to execution as AI becomes embedded across core banking, payments, lending and compliance functions. Institutions in the UAE are among the most proactive in scaling AI responsibly and securely.
The Finastra Financial Services State of the Nation 2026 report shows institutions across the Middle East increasingly focused on scaling AI responsibly, securely and profitably as digital transformation accelerates and customer expectations continue to rise. The emphasis has moved beyond pilots to ensuring technology performs reliably at scale.
The research highlights strong momentum in the UAE, where 53% of institutions are deploying AI to improve accuracy and reduce errors, and 44% are using AI to lower operational costs, reflecting a pragmatic approach centered on efficiency, reliability and execution.
Security is rising rapidly up the agenda. Financial institutions globally expect security investment to increase by an average of 40% in 2026, driven by escalating cyber threats, deeper reliance on digital platforms, and tighter regulatory scrutiny. The UAE stands out as one of the most proactive markets, with nine in ten institutions planning to increase security spending over the next 12 months, underlining the importance of resilience and trust as digital adoption deepens.
Modernization has moved firmly to the top of the strategic agenda. Nearly nine in ten (87%) institutions globally plan to invest in modernization over the next 12 months, enabling AI at scale, strengthening operational resilience and supporting improved customer experience. Confidence in modernization is particularly strong in the Middle East, with UAE among the most active markets for core banking modernization.
Despite ongoing disruption, optimism across the sector remains high. 87% of respondents report strong personal optimism, while 86% are optimistic about the outlook for their institutions, as technology and operating models continue to evolve.
“Across the Middle East, technology decisions now sit at the center of trust, resilience and customer experience,” said Chris Walters, CEO at Finastra. “Institutions in the UAE are moving decisively beyond experimentation, focusing on responsible AI, modernization and security to deliver reliable, personalized financial services, at scale.
He added: “This year’s findings show a sector that is confident but disciplined. Success is no longer defined by how fast institutions innovate, but by how dependably they execute”.
Access the full Finastra Financial Services State of the Nation 2026 report here.
Notes to editors
Survey methodology
- A total of 1,509 managers and executives from banks and financial institutions across 11 regions participated in the survey (including France, Germany, Hong Kong, Japan, Mexico, Saudi Arabia, Singapore, the UAE, UK, the U.S., and Vietnam). Collectively, the organizations represented manage over $100 trillion in assets, equivalent to approximately a quarter of global financial assets based on public estimates. These organizations employ around 5 million staff and serve approximately 400 million client, customer, or member relationships.
- Figures are based on respondent-reported data; percentages may not sum to 100 percent due to rounding and multiple-choice questions.
- The research was conducted by Savanta via an online panel (November 2025).
For further information please contact:
Jackie Kumar
APAC and MEA PR Specialist
T +63 998 5461716
E jacqueline.kumar@finastra.com
finastra.com
About Finastra
Finastra is a global leader in financial services software, trusted by 7,000+ customers - including 40 of the world’s top 50 banks - in over 110 countries. With expertise in Lending, Payments, and Universal Banking, we deliver reliable, scalable, mission-critical solutions such as Loan IQ, LaserPro, Trade Innovation, Essence, Global PAYplus, Payments To Go, and Financial Messaging. Backed by Vista Equity Partners, we co-innovate with customers to build modern technology that helps financial institutions grow with confidence. Visit www.finastra.com or follow Finastra on LinkedIn.