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In 2025, retailers in the GCC find themselves at an interesting juncture. On one hand, there is the opportunity to transform their entire value chains by integrating emerging digital technologies into their ecosystems. With solutions such as Artificial Intelligence (AI), there is incredible potential to disrupt the way products, services and experiences are brought to customers, with the expected outcome of reduced costs and higher customer and talent retention. It is expected that by 2028, AI services in the retail sector will increase to $31 billion, up from $5 billion today
However, on the other hand, this dynamic landscape warrants a change in the fundamental way that these retailers operate. From their mindsets around digitalisation, to their internal skills and capital investments – there is a need for an overhaul in the way digital solutions are considered, planned and implemented. This is easier said than done, with challenges including limited data expertise, organisational inertia and data privacy impacting the pace of change.
At Al-Futtaim, our vision is for an AI-powered future where technology seamlessly enhances every aspect of the retail journey, creating unparalleled value for our customers. To leverage this potential today, we must prioritise customer experiences and satisfaction above all else, ensuring that AI serves to personalise interactions, anticipate needs, and create lasting connections. The future of retail is about building relationships, not just completing transactions.
The GCC region is uniquely positioned to lead this transformation. With our digitally savvy population, supportive government policies, and a dynamic business environment, we have the potential to become a global hub for AI innovation. To realise this ambition, we must foster a collaborative ecosystem, embracing ethical AI practices and investing in the talent of tomorrow.
In March 2025, representatives from across the GCC’s thriving retail sector, including technology providers, retailers, academia and startups, gathered to discuss how AI is transforming customer experiences, enabling hyper-personalisation and improving operational efficiency. This white paper explores the opportunities and challenges that lie ahead, offering insights and recommendations for the industry to utilise AI in a way that benefits the end-user, i.e, the customer.
© 2025 Al-Futtaim. All rights reserved.
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