AI-driven cyber fraud increased by 1,300% globally in 2024, according to a report published by Fortinet titled “Cybersecurity for the Banking Sector in the Middle East and Africa 2026.” The report attributes this surge primarily to the rapid expansion of deepfake technology targeting digital and mobile banking services.
The report states that phishing attacks and digital identity impersonation powered by artificial intelligence are among the most prominent threats facing financial institutions across the region. Moreover, the growing reliance on third-party service providers has broadened the attack surface for banks operating in the Middle East and Africa.
Saudi Arabia Achieves Perfect Score in Global Cybersecurity Index
The Kingdom of Saudi Arabia scored 20 out of 20 in the Global Cybersecurity Index 2024, issued by the International Telecommunication Union. This result places the Kingdom among only 13 countries in the Middle East and Africa classified within the highest global tiers. The report links this achievement to national investments in cybersecurity governance, digital infrastructure, and financial sector resilience in alignment with Vision 2030 objectives.
Sovereign Cloud Market Projected to Reach $823.9 Billion by 2032
The report estimated the global sovereign cloud market at approximately $154.7 billion in 2025. Projections indicate this figure will reach $823.9 billion by 2032. Furthermore, the report identifies Saudi Arabia as a major regional hub, noting that global cloud service providers are committing to establishing cloud regions and service centers within the Kingdom to meet data localization requirements.
This growth is driven by data localization requirements and national security considerations across Gulf Cooperation Council countries and several African nations. Investments are also moving toward developing local cloud infrastructure within countries across the region, enabling institutions to retain sensitive data within national borders.
AI-Driven Cyber Fraud and the Dual Role of Artificial Intelligence
The report explains that artificial intelligence plays a dual role within the financial sector. While AI-powered tools help financial institutions detect attacks more quickly and stop fraud operations in real time, the same technology is associated with the emergence of sophisticated threats including deepfake attacks, automated phishing, and digital identity theft. These tools also enable the automation of routine tasks within cybersecurity teams, supporting operational efficiency.
“The threat landscape and regulatory environment within the financial sector are undergoing rapid transformation due to the growing complexity of digital threats and the expanding reliance on third-party provider ecosystems to support core operations.”
Fortinet, Cybersecurity for the Banking Sector in the Middle East and Africa 2026
Post-Quantum Cryptography: A Growing Gap
The report warns of challenges associated with post-quantum cryptography. A regional survey showed that 61% of organizations in Europe, the Middle East, and Africa are not prepared for the post-quantum era. In addition, only 12% have begun deploying quantum-safe security technologies. This gap creates exposure to “harvest now, decrypt later” attacks, in which adversaries collect encrypted data today with the intention of decrypting it as quantum computing capabilities evolve.
The global cybersecurity workforce shortage exceeds 4.7 million specialists, the report noted. Consequently, many organizations continue to operate with vacant security roles, making it more difficult to confront growing digital threats. The Essential Cybersecurity Controls issued by the National Cybersecurity Authority require entities operating critical infrastructure to employ Saudi professionals in cybersecurity roles, supporting Vision 2030 objectives related to digital growth.
Strategic Priorities for the Saudi Banking Sector
The report identifies several strategic areas expected to receive priority in the Saudi banking sector. These include strengthening operational resilience testing and cyber stress testing, expanding the adoption of sovereign cloud and Sovereign SASE solutions, tightening third-party and supply chain risk management, and investing in AI-powered threat detection systems.
The report also highlights the expanding adoption of Sovereign SASE solutions that combine secure networking, cybersecurity operations, and unified protection platforms. These solutions are designed to support institutions operating in highly regulated sectors such as financial services, government entities, and critical infrastructure. Establishing early roadmaps for adopting post-quantum cryptography technologies is also listed as a priority area for the sector.
