Cryptocurrencies, AI, and the Future of Conversational Business in the Middle East

By Hafsa Qadeer

In late 2024, the Middle East witnessed a remarkable rise in two related areas: cryptocurrencies and artificial intelligence (AI). These developments are shaping technology and transforming how businesses communicate with their customers. Across cities like Dubai, Riyadh, and Cairo, entrepreneurs, government officials, and technology experts are busy building new products that combine the power of AI with the promise of digital currencies. Many believe this combination will change the future of the Middle East’s commerce, customer service, and financial transactions.

The relationship between cryptocurrencies and AI-driven conversational tools has become a popular topic. As we enter 2025, Middle Eastern consumers are more open to digital payments and online interactions than ever. According to a survey conducted by the Gulf Tech Institute in December 2024, nearly 65% of young adults in the Gulf Cooperation Council (GCC) countries said they had used at least one form of digital currency in the past year. At the same time, AI-powered chatbots have grown rapidly among businesses, with 40% of firms reporting they used AI to handle customer queries in the last quarter of 2024. This number is expected to grow even more in 2025.

In this article, we will explore how cryptocurrencies are gaining acceptance in the Middle East, how AI shapes the future of business communication, and how these two trends might intersect. We will also look at examples from companies leading the way and offer expert insights on what lies ahead.

The Rise of Cryptocurrencies in the Middle East

People in the Middle East have been interested in blockchain technology and digital currencies like Bitcoin and Ethereum for several years. However, the real push for wide adoption began around 2021 and continued through 2022. Governments started to see the potential of blockchain for improving financial systems and attracting foreign investments. Banks and regional financial institutions started exploring ways to integrate digital currencies into their services, resulting in faster cross-border payments and new investment opportunities.

In August 2024, Rain reported a 150% growth in trading volume compared to the same period in 2023. This expansion shows that more investors and regular users are turning to digital currencies in the region. Rain’s CEO, Abdullah Almoaiqel, shared in a televised interview, “Cryptocurrencies are no longer a niche. They are becoming a valuable part of many people’s financial strategies in the region. We are excited to see our platform grow as more users discover the convenience of digital assets.”

By late 2024, the number of businesses accepting Bitcoin in major Middle Eastern cities had risen sharply. Recently, the Dubai Blockchain Center showed that around 1,000 retailers and online platforms in the UAE accept some form of cryptocurrency payment. Meanwhile, financial regulators in countries like Saudi Arabia, Bahrain, and the UAE began creating guidelines for initial coin offerings (ICOs) and security token offerings (STOs). These guidelines helped reduce uncertainty and encouraged legitimate players to enter the market.

AI’s Emergence in Customer Engagement

While cryptocurrencies streamline financial transactions, AI revolutionizes how businesses communicate with customers. Over the past few years, chatbots have evolved from simple automated text replies to advanced conversational systems capable of understanding language nuances. In 2024, several AI startups in the Middle East received significant funding, especially those focusing on natural language processing (NLP) and machine learning.

According to a December 2024 report by the Middle East Tech Association (META), investment in AI-related startups has increased by 45% since 2023. Many startups develop products that help businesses automate customer service, sales, and marketing tasks. Retailers, banks, and telecom companies find these solutions especially useful because they enable 24/7 customer support, faster response times, and more personalized interactions.

In October 2024, ChatArabia announced a partnership with a major Saudi bank to launch an Arabic-language AI chatbot. This chatbot can handle complex banking requests, help users open new accounts, and even provide personalized investment advice. Sarah Al-Farhan, ChatArabia’s CEO, explained, “Our goal is to make AI-driven conversations as natural and trustworthy as talking to a real bank representative. We believe that in a region where culture and language play significant roles, localized AI solutions are a must.”

How Cryptocurrencies and AI Will Converge

The next big question is how cryptocurrencies and AI will come together to shape the future of conversational business in the Middle East. One possibility is the creation of automated payment systems within AI-driven chatbots. Imagine conversing with a virtual assistant about travel bookings and, at the end of the chat, making the payment in cryptocurrency without leaving the chat window. This seamless user experience could become a reality sooner than we think.

Noon, one of the largest e-commerce platforms in the Middle East, has been quietly testing an AI chatbot that allows customers to pay with cryptocurrency. In a pilot program that started in September 2024, selected users in the UAE could chat with Noon’s AI assistant, ask about products, and then pay in Bitcoin or stablecoins linked to local currencies. Initial results showed a 25% increase in customer satisfaction because users did not have to switch between different apps for chatting and paying. Noon’s Head of Digital Innovations, Rashid Omar, noted, “We believe integrating cryptocurrency payments with a friendly AI chatbot will lead to a more convenient shopping experience. It’s a small step, but the feedback so far is encouraging.”

Government Support and Regulation

One reason cryptocurrencies and AI are growing in the Middle East is the support from local governments. The UAE government launched the Emirates Blockchain Strategy to adopt blockchain technology across various sectors. This plan has encouraged public and private sectors to experiment with distributed ledgers for everything from supply chain management to tourism. Meanwhile, Saudi Arabia’s Vision 2030 emphasizes digital transformation, which includes adopting AI for smart city projects and automated services.

Regarding AI, several countries in the region have been setting up research centers and labs focused on machine learning. These institutions, often in partnership with global tech giants, aim to train local talent and create new AI solutions for the region’s unique challenges. Additionally, governments are keen to regulate digital currencies in a balanced way, ensuring consumer protection and preventing financial crimes. By the end of 2024, countries like Bahrain and Oman had introduced licensing frameworks for crypto businesses, making it easier for legitimate companies to set up operations.

Dr. Amina Khalid, a researcher at the Dubai Future Foundation, highlights the importance of government support. She says, “The Middle East is rapidly catching up with the West regarding technology adoption. Thanks to strong governmental backing, we are skipping several steps in the evolution of digital services and moving straight toward advanced AI and cryptocurrency solutions. This leap will reshape our economic landscape in the next few years.”

Transforming Customer Service Through Conversational Commerce

Conversational commerce, which describes buying and selling products through chat or voice interfaces, is becoming more common in the Middle East. This shift is especially noticeable in the retail, travel, and finance. AI-powered chatbots let customers browse products, compare prices, and complete purchases without needing a human agent. At the same time, cryptocurrency payments can make these transactions even faster and more secure, especially for international customers who prefer digital assets over traditional banks.

FlyDubai, a budget airline in the UAE, launched an AI-driven chatbot in November 2024 that allows passengers to book tickets, choose seats, and pay with various options, including cryptocurrencies like Bitcoin and a stablecoin pegged to the UAE dirham. The airline reported a 30% reduction in booking times and a 15% rise in travelers who booked flights directly through the chatbot.

One key benefit was the chatbot’s ability to instantly provide currency conversions and handle digital asset payments without the usual delays in credit card transactions. In an official statement, FlyDubai said, “Innovation is at the core of our strategy. By integrating AI and crypto payments, we’re making it easier for a new generation of travelers who want faster and more flexible options.”

Challenges and Concerns

Despite the many advantages, the rise of cryptocurrencies and AI in conversational business also brings challenges. Security is one major concern. While blockchain technology is known for its security features, crypto wallets and exchanges can still be targets for hackers. If not carefully managed, AI-powered systems can suffer from data breaches or misuse of personal information.

Another concern is the lack of clarity around regulations. Although many countries are creating legal frameworks for digital currencies and AI, there is still a gap in standardizing these rules across the region. A business operating in the UAE might follow different rules than one in Saudi Arabia. This inconsistency can slow down cross-border innovation and partnerships.

Finally, there is the issue of public understanding. While younger generations in the Middle East are more tech-savvy, many people are still unsure how cryptocurrencies work or why they should trust AI. Addressing these concerns will require ongoing education campaigns, transparent practices, and user-friendly tools.

Skills and Talent Development

To fully benefit from AI and cryptocurrencies, the Middle East must invest in building digital skills. Universities and training centers are already adapting their curricula to include blockchain development, AI programming, and data science. Governments like Saudi Arabia’s Ministry of Communications and Information Technology have launched scholarship programs focusing on emerging technologies. At the same time, private organizations host workshops and hackathons to help individuals gain hands-on experience.

AI specialists, crypto analysts, and blockchain developers are in high demand in the job market. Recruiters report that wages for these positions have increased by up to 35% since 2023. Some businesses worry about a talent shortage, leading them to compete for skilled professionals and partner with educational institutions to fill the gap.

Looking Ahead to 2025 and Beyond

So, what can we expect in 2025 and the coming years? Experts believe more companies will incorporate AI chatbots into their core customer service and sales operations. This shift will happen alongside a steady rise in cryptocurrency acceptance, making it normal for people to pay for goods and services with digital assets. Governments will continue refining regulations to encourage innovation while protecting consumers.

Many observers also think that stablecoins, digital currencies pegged to local fiat currencies, will grow in popularity. These coins reduce the volatility that regular cryptocurrencies like Bitcoin or Ethereum often face. This stability can attract more cautious users who want the advantages of blockchain without the risk of price swings.

In the realm of AI, natural language processing is expected to reach new levels of accuracy. Chatbots will sound more human and possibly support multiple languages, dialects, and sign language capabilities. This level of linguistic sophistication will be particularly important in the Middle East, where language and cultural nuances can vary widely from one region to another.

A Future Shaped by Innovation

The Middle East is at a turning point. Cryptocurrencies and AI, once seen as futuristic ideas, are now part of everyday business conversations. Whether a bank in Riyadh uses AI to handle customer questions, an e-commerce site in Dubai accepts Bitcoin, or an airline in Cairo offers AI-guided bookings, the region is embracing digital transformation with open arms.

This shift is not happening without challenges. Security risks, regulatory complexities, and the need for more public education remain important issues. But with strong government support, a growing pool of tech-savvy professionals, and the relentless creativity of startups, the Middle East is on its way to becoming a global hub for AI and blockchain innovation.

As we move through 2025, we can expect even deeper integration of cryptocurrencies into daily transactions, more advanced conversational AI systems, and an ongoing push to make these technologies accessible and beneficial to everyone. The future of conversational business in the Middle East looks bright, fueled by new ways of thinking about finance, communication, and customer engagement. It is a story of collaboration between governments, private companies, and a generation of digital pioneers, and it has only just begun.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.