The GCC has pulled out all the stops to position itself at the forefront of digital transformation, both in the public and private sectors. The acceleration of adoption of new technologies has been placed firmly atop the list of priorities for initiatives like Saudi Arabia’s Vision 2030 and is already bearing fruit.
As we move through 2025 and beyond, there are seven key trends that are driving software development within the region that are aligned with broader global trends, but with high specificity for the GCC’s goals.
These current trends in software development, and especially in the cases of AI-driven public services and strengthened cloud infrastructure, are notable as beacons of the shift towards AI in governance. And with the region constantly setting the standard for digital innovation and implementation, future trends in store will no doubt hit the mark with the same degree of success.
1. Generative AI Expands in the Public Sector
AI has already cemented itself in the GCC’s public sector, with governments integrating chatbots and myriad automation solutions into their citizen services. But with the rapid advancements in generative AI being monitored and vetted constantly for possible implementation there are even greater leaps being taken.
The need for interactions to be more dynamic and context-aware is there, it’s just a case of finding the right platforms that deliver what is needed at scale. Indeed, Dubai’s “Rashid” chatbot and similar AI-driven services across the region have set the stage for more sophisticated applications.
With OpenAI’s ChatGPT demonstrating near-human conversational abilities, governments are exploring how such tools can improve citizen engagement, provide personalized assistance, and automate complex inquiries.
Opportunities and Risks
- AI can deliver highly personalized government services, reducing bureaucratic inefficiencies.
- Arabic language adaptability and integration with existing communication channels like WhatsApp will be crucial.
- Ensuring fairness, accuracy, and security in AI-generated responses remains a significant challenge.
Transparency and accountability are critical to the entire scope of the operations and AI-driven public services will need to have frameworks in place to build and maintain trust.
But there is growing investment in that area to deliver the policies and outcomes that make their prevalence a force for good governance.
2. Super Apps Become a Government Standard
Super apps are platforms that unify multiple services into a single application and are fundamentally changing the way that businesses interact with the public at large. Now, the public sector is adopting the same approach to streamline government services.
The success of Dubai Now, which has processed over 20 million transactions worth $2.7 billion USD, proves that citizens are ready for a seamless digital government experience. Through super apps, residents can handle everything from visa renewals to business registrations, all in one place.
Why This Matters
- Governments can provide a frictionless user experience by consolidating services under a trusted platform.
- Citizens benefit from automatic processes like passport renewals and social benefit activations.
- Blockchain and open banking innovations will further refine these platforms in the coming years.
Through super apps, residents can handle everything from visa renewals to business registrations, all in one place. It will smoothen out the bottlenecks associated with high volumes of documentation across a host of public services.
3. IoT Fuels the GCC’s Mega-Events Industry
The Internet of Things is changing how events are managed, from ticketing and security to real-time crowd monitoring. The FIFA World Cup 2022 in Qatar showcased this capability through digital twin technology, using data from 40,000 IoT devices to optimize stadium operations.
Dubai’s Enterprise Command and Control Center takes a similar approach, integrating AI and IoT to monitor 11,000 surveillance cameras, 5,000 kilometers of roads, and 10,000 taxis in real time.
With Saudi Arabia set to host the 2029 Asian Winter Games, investments in IoT-driven event management will continue to rise and while not by definition among the current trends in software development, it is still a major force to look out for on the tech horizon for the GCC.
Key Takeaways
- IoT delivers total visibility and management of crowd control and safety at large-scale events.
- Event-driven IoT advancements can even be of significant benefit to smart cities infrastructure.
- Collaboration is crucial to build competitive regulatory frameworks both publicly and privately.
4. Cloud Computing Sees Unprecedented Growth
Infrastructure is the key factor in the quest reliable and trusted cloud computing and forms the backbone of the GCC’s digital ambitions. Widespread 5G adoption, smart city initiatives, and growing cybersecurity needs have driven demand for local and international cloud providers.
Saudi Arabia’s cloud market is expected to surpass $6 billion USD by 2025, with major players such as AWS, Google Cloud, and Alibaba Cloud expanding their presence in the region underlining its importance as one of the major current trends in software development.
The Growing Cloud Landscape
- GCC countries are investing heavily in local data centers to reduce dependency on foreign infrastructure.
- Hyperscalers are entering the market, offering scalable cloud services tailored to regional needs.
- Strengthened data protection regulations are ensuring compliance with global standards.
The trifecta of data security, privacy, and regulatory compliance will be under massive scrutiny as the adoption of the cloud continues its steady rise. And with it, businesses and arms of government will need to be vigilant, but all the evidence points towards there being exceptional attention to detail.
5. Governments Unlock the Power of Centralized Citizen Data
There are obstacles when it comes to AI-driven decisioning and particularly within the context of fragmented citizen data. Because of the cross-departmental nature of this type of data there does need to be a far more centralized approach to platforming service delivery.
Bahrain’s national digital transformation strategy emphasizes the need for integrated government data, while Saudi Arabia’s National Data Management Office (NDMO) is driving a similar initiative across 130+ public sector entities.
What This Means for Software Development
- Governments looking to store citizen data will need to explore more robust data management platforms.
- Improvements to policymaking, workforce planning, and economic forecasting will all need to be established.
- Data privacy regulations will need to take center stage and will be a pivotal part of avoiding misuse and public distrust.
With the establishment of this level of centralization, there will be a consolidated well of sensitive data that makes public service delivery faster, safer, and more efficient. As ever, the protocols for such an endeavor will require the utmost transparency.
6. Ethical Frameworks Become a Non-Negotiable
As the march of digital services continues and becomes more and more prevalent in everyday life, the ethical implications of adoption do raise a number of questions. The concerns over totally secure and moral AI-driven decision-making are already at fever pitch.
So, when citizen data collection, and smart surveillance systems all drive concerns about privacy, bias, and accountability there will need to be a reaction. The response itself to this need for accountability is among the current trends in software development and it will be high on the to-do list for policymakers.
In fact, the GCC has already taken steps toward ethical AI governance. The UAE and Qatar have included AI ethics in their national strategies, while Saudi Arabia’s SDAIA has introduced a set of AI ethics principles.
Key Areas of Focus
- Fairness, transparency, and explainability are all crucial to the design of AI.
- Open data initiatives need to have increased parity between innovation and privacy protections.
- Regulatory bodies need to adapt quickly to emerging ethical concerns.
Of course, even in the face of the ethical questions posed by the implementation of future technologies there also needs to be space to maneuver when it comes to innovation and advancements in the field.
7. Third-Party Cybersecurity Risks Intensify
There is a growing reliance on third-party vendors for cloud storage, software development, and IT infrastructure and as a result cybersecurity is among the current trends in software development for the GCC. It would be pertinent to remember the effects of the ‘Shamoon’ cyberattacks on Saudi Aramco that caused significant losses as well as creating uncertainty for years in the aftermath.
The interconnected nature of modern software ecosystems whether in the public or private sector means that any kind of vulnerability in a third-party system can have widespread consequences.
A recent study found that 42% of business leaders in the Middle East and Africa view external supplier cyber disruptions as a top concern. Despite this, only 40% of companies in the region have conducted risk assessments on their vendors.
Steps to Strengthen Cyber Resilience
- Stringent and robust security policies for third-party vendors must be laid out.
- Continuous oversight of supplier security practices will be critical.
- Governments will need to enforce cybersecurity compliance requirements for public sector contracts.
As digital transformation accelerates, cybersecurity will remain a top priority for both businesses and government entities.
What is Responsible for the Growth in Business Software Development in the GCC?
The tech scene in the GCC is booming, governments have gone all-in on innovation, and the commitment to diversifying beyond oil is bigger than it’s ever been.
Massive investments are being poured into software, AI, and cloud development, and it’s paying off significantly in the quest to establish the region as the world’s prescient tech adopter.
Government Backing Drives Growth
- Smart services, AI, and cloud software are all top priorities. According to Business Monitor International (BMI), this focus is supercharging the country’s IT sector.
- The goal is clear and that is to make the GCC a tech powerhouse.
The Booming SaaS Market
- The UAE’s SaaS market alone is expected to grow at an impressive 27.93% CAGR, reaching $30.52 billion by 2029.
- That’s a lot of opportunity in the cloud-based software space and it will bring an injection of talent from around the globe to achieve the region’s goals.
Dubai Attracts Global Giants
- Global companies are flocking to Dubai for perks like tax-free systems, competitive wages, and a booming business sector.
- Big names like Google, Amazon, and Nestlé are all in. The Dubai International Financial Centre is a key draw for international businesses.
GCC’s Tech Vision for the Future
- By 2030, the GCC wants to lead the world in technology in key sectors like communication, finance, healthcare, and logistics.
- With strong government backing and ongoing innovation, the GCC’s business software sector is set for big growth in 2024 and beyond.
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