BE Magazine - August 2026

and operational analysis are among the functions seeing accelerated au- tomation. Forecasts suggest that a meaningful share of existing workplace skills could require significant adjustment within the next decade. For Arab economies—many of which already face youth-employ- ment pressures, skills mismatches, and labor-market rigidities—this issue warrants serious attention. The challenge is not necessarily mass unemployment. Rather, it is the pace of adaptation. Historically, technological progress has created new jobs even as older roles declined. The concern today is whether reskilling systems can evolve quickly enough to support workers transitioning into new forms of employment. This is particularly relevant for economies in the Middle East and North Africa, where demographic re- alities make workforce inclusion a strategic economic priority. A SHARED RESPONSIBILITY BETWEEN GOVERNMENTS AND INSTITUTIONS Addressing workforce disruption cannot be left solely to governments. Employers, educational institutions, regulators, and financial institutions all have a role to play. Training initiatives will matter—but effectiveness depends on alignment with real market demand rather than generic skills programs. Workers must be equipped with capabilities that are commercially relevant, tech- nologically adaptable, and econom- ically valuable. Equally important is digital access. Broadband infrastructure, digital lit- eracy, and affordable technological access increasingly represent eco- nomic infrastructure—not optional public policy considerations. Banks themselves may become key enablers of this process, whether through financing education initia- tives, supporting SME adaptation, in- vesting in workforce development, or enabling financial inclusion linked to digital skills. The broader economic objective should be clear: ensuring that the gains associated with AI contribute to wider prosperity rather than becom- ing concentrated among a narrow segment of technology owners. A STRATEGIC IMPERATIVE FOR ARAB BANKING LEADERS For Arab banking leaders, the con- versation around AI should move be- yond either excessive optimism or alarmism. The immediate systemic financial risks appear manageable, particu- larly if regulators and institutions apply lessons learned from the post- 2008 era. Concentration risk, opera- tional resilience, and stress testing should become part of mainstream governance discussions surrounding AI adoption. At the same time, leaders should avoid viewing AI solely through a productivity lens. The more consequential challenge may lie in employment, workforce preparedness, and economic inclu- sion. Banks cannot remain passive observers in this discussion. As key intermediaries between capital, busi- ness activity, and national develop- ment priorities, financial institutions will inevitably influence how economies adapt. The institutions best positioned for the coming decade will likely be those that pair technological sophis- tication with prudent governance, in- vest in workforce readiness, diversify operational dependencies, and maintain a balanced view of both opportunity and risk. In the end, the question is not whether AI will influence finance and economies—it already is. The more important question is whether institutions are preparing thought- fully enough to ensure that the ben- efits are broadly shared, operational risks remain manageable, and long- term economic stability is strength- ened rather than tested. the BANKING EXECUTIVE 36 ISSUE 212 AUGUST 2026