In an insightful analysis by Jadd Elliot Dib, Founder and CEO of PangaeaX, the message for MENA’s tech ecosystem is clear: AI governance can no longer be an afterthought. As governments worldwide shift from experimentation to oversight, the window to embed governance, risk assessment, and transparency into AI systems is closing fast. Companies that delay action risk costly retrofits and regulatory penalties, while those that act early can build invaluable trust and establish themselves as responsible innovators.
UAE Leads The Charge In Regional AI Governance
While major global powers are formalising their stance on AI, the UAE is positioning itself at the forefront of this new regulatory landscape. In mid-2024, the nation introduced its Charter for the Development and Use of Artificial Intelligence, outlining key principles around safety, privacy, bias mitigation, and human oversight. This framework is further strengthened by federal data protection laws and the establishment of dedicated bodies like the Artificial Intelligence and Advanced Technology Council.
This proactive approach in the UAE mirrors global trends. The European Union’s AI Act began phasing in key provisions throughout 2025, with a full set of obligations for high-risk systems expected in 2026. Similarly, the United States introduced a national AI framework in late 2025 to create unified standards. For MENA startups, the UAE’s framework provides a clear signal of the region’s intent to balance ethical oversight with innovation-friendly regulation.
Governance As A Strategic Asset Not A Checklist
According to Dib, true AI governance must extend beyond a simple compliance checklist. As regulations come into force, companies require clear frameworks that define decision-making authority, establish robust risk assessment processes, and ensure accountability across the entire AI lifecycle.
This begins with a formal governance policy covering fairness, transparency, and security. Effective implementation also demands cross-functional oversight, bringing together legal, technical, and business leaders to balance innovation with regulatory duties. When embedded early, this approach reduces future compliance costs and transforms AI from a potential risk into a strategic asset.
Transparency And Explainability Are The New Baseline
Transparency and explainability are rapidly becoming non-negotiable requirements. Transparency sheds light on how AI systems operate and the data they use, while explainability is the ability to articulate why a model produces a specific outcome.
Research from Stanford University highlights that limited explainability is a major barrier to scaling AI, especially in regulated sectors like finance and healthcare. A 2025 report from Microsoft further supports this, finding that over 75% of organisations using responsible AI tools reported significant improvements in data privacy, customer trust, and brand reputation. As regulatory scrutiny intensifies, these principles are no longer optional best practices but baseline requirements.
Upskilling The Entire Organisation For An AI-First Future
AI regulation impacts the entire organisation, not just legal and compliance teams. To innovate confidently, companies must invest in upskilling their workforce with a foundational understanding of AI ethics, regulatory frameworks, and responsible deployment practices.
Marketing teams need to understand how AI-driven personalisation complies with privacy laws. HR departments must ensure recruitment algorithms are free from bias. Product managers must be equipped to document AI decision-making processes for regulators. Embedding AI literacy across all functions is critical for both compliance and sustainable innovation within the new regulatory boundaries.
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Source: Wamda
