In the past few years, data governance has moved from a back-office IT concern to a board-level imperative across the Gulf Cooperation Council (GCC). Spurred by accelerating digital transformation, new data privacy laws, and the rise of AI, governments and businesses in the GCC are increasingly realizing that sound data governance is the backbone of any successful digital economy.

This article explores how the GCC is responding to this challenge—through regulations, strategy, and execution—and what it means for organizations in the region.

The Regulatory Shift: Data Governance Becomes Mandatory

From 2022 to 2025, nearly every GCC country implemented or updated comprehensive data protection laws and expanded national strategies to cover AI and data governance:

• UAE introduced its Federal Personal Data Protection Law (PDPL) in January 2022, enforced by the UAE Data Office. It also launched a National AI Strategy 2031, issued AI Ethics Guidelines, and developed a Smart Data Framework for public entities. Sector-specific standards are emerging (e.g. Central Bank’s model management standards). (UAE Data Office, 2022)

• Saudi Arabia enacted its PDPL in 2021 (amended in 2023), with enforcement set for September 2024. The National Data Management Office (NDMO), under SDAIA, issued a National Data Governance Framework mandating data governance across public entities. The country also launched a National Strategy for Data & AI and an AI Adoption Framework aligned with Vision 2030. (SDAIA, 2023)

• Bahrain was the first GCC nation to implement a Personal Data Protection Law (2019). In 2024, Bahrain advanced the region’s first draft AI Regulation Law, proposing fines for non-compliance. A national data governance framework is under development, while financial regulators like the Central Bank of Bahrain emphasize governance standards. (AI Regulation Law Draft, 2024)

• Qatar implemented its Personal Data Privacy Law in 2017 and similar rules in the Qatar Financial Centre. From 2022 to 2025, the country advanced a National Data Strategy and launched formal data governance frameworks. It also updated its National AI Strategy and held consultations on AI ethics and governance.

• Oman issued its PDPL under Royal Decree 6/2022, effective February 2023. In 2024, Executive Regulations were published to guide compliance. Oman has drafted a National Data Strategy and a National AI Policy (final version pending), underscoring a commitment to AI governance and data transparency. (Oman Royal Decree)

With enforcement timelines now active, non-compliance carries legal and reputational risk. This is turning data governance into a strategic necessity.

Maturity in Progress: Advanced Intent, Uneven Execution

While regulatory frameworks are advancing, actual implementation inside organizations varies widely. Only 10% of Middle East organizations have achieved best-practice data maturity, according to BCG (BCG Middle East Data Maturity)

In Saudi Arabia:

• 85% of organizations report data is still siloed

• 75% say their analytics tools aren’t integrated with AI platforms

Globally, 71% of companies have adopted governance programs by 2024, up from 60% the year prior. Saudi Arabia’s National Data Index (NDI) is now being used to measure and accelerate progress. (NDI Initiative, 2023)

Despite these efforts, governance frameworks remain underfunded or inconsistently implemented in many GCC firms—especially SMEs and mid-cap enterprises.

What Poor Governance Costs

The consequences of underinvestment in data governance are clear and costly:

• Data breaches: Gulf Air’s 2023 breach exposed customer data, as an example. Regional data breaches now cost $8.07 million on average—second only to the US. (IBM Cost of Data Breach Report, 2023)

• AI bias & compliance risk: Without bias checks or audit trails, companies deploying AI models face penalties. Bahrain’s draft AI Law proposes fines for misuse. (AI Regulation Draft, 2024)

• Operational inefficiencies: A leading Middle Eastern airline reported soaring IT costs and lost revenue due to siloed, ungoverned data. (Databricks Case Study, 2023)

AI, automation, and analytics initiatives rely on clean, integrated, and governed data. Without this, missteps are inevitable and costly.

The Value of Strategic Governance

Strategic governance is not just about avoiding penalties—it enables competitiveness. Key outcomes:

• Financial Institutions achieved improvements in enterprise data quality score from 84% to 99% in 12 months (Informatica Case Study)

• Banks with strong governance saw 8.2% revenue increase, 6.5% cost reduction when improving data quality by just 10% (Harvard Business Review, 2023)

• GCC firms with good governance report faster compliance cycles, reduced manual effort, and improved risk modeling.

Governance provides the infrastructure to:

• Scale AI and analytics

• Enable data monetization

• Drive digital transformation

Lessons from Leaders: Global and Regional Case Studies

• Leading GCC Financial Institutions: Built centralized data governance, achieved 99% accuracy on critical data, reduced manual reporting effort by 25% (Informatica)

• Major Middle East Airline: Broke down data silos with a governed data catalog; improved data discovery and security (Databricks Unity Catalog)

• Airbnb: Trained employees on data governance principles via “Data University” to democratize analytics (Airbnb Data University)

• GE Aviation: Built a central governed data hub for analytics and predictive maintenance (GE Aviation Case Study)

A Pragmatic Path Forward

At Strigence, we believe data governance should not be viewed as a compliance cost—but as the control layer that turns data into a true strategic asset. Based on our engagements and regional insight, here's what we believe the most effective GCC organizations are doing differently:

• Start small—but start now: Prioritize high-value domains like customer or operational data, then scale governance in phases.

• Anchor to business outcomes: Map governance efforts to measurable ROI, such as better AI accuracy or faster regulatory compliance.

• Empower business units—not just IT: Use a federated model where business leads own governance, supported by data stewards and IT.

• Invest in enablement—not enforcement: Focus on internal champions, literacy programs, and trust-building initiatives.

• Treat governance as transformation: Embed governance into workflows, decision-making, and strategic initiatives—not just toolsets.

Done right, data governance creates a scalable foundation for growth, innovation, and trust. And in a region as ambitious and fast-moving as the GCC, that foundation is essential.

From Vision to Action: A Leadership Agenda

For GCC organizations ready to move beyond compliance and toward strategic advantage, we recommend the following roadmap:

1. Put Governance on the C-Suite Agenda: Appoint a Chief Data Officer (CDO) with cross-functional authority. Governance is a strategic lever, not just a technical discipline.

2. Codify and Operationalize Governance: Translate national frameworks into actionable policies and assign accountable data owners. Standardize data domains and stewardship models.

3. Modernize the Tech Stack: Invest in data catalogs, lineage tools, and real-time data monitoring. Make governance native to your data pipeline—not an afterthought.

4. Drive a Culture of Trust and Accountability: Launch data fluency initiatives. Celebrate “quick wins” from governance projects. Make governance part of the employee experience.

5. Align Governance to Growth: Use governed data as a foundation for AI, automation, personalization, and monetization. Make governance the enabler of innovation.

Data governance isn’t a checkbox—it’s your organization's new operating system. Done right, it drives resilience, agility, and long-term advantage.

Conclusion: Governance Is the Enabler

As the GCC accelerates digital transformation, data governance is no longer optional. It's the enabler that ensures:

• Compliance with rising regulatory expectations

• Trust with customers and partners

• Efficiency in internal operations

• Value from AI and analytics

Organizations that invest now will be best positioned to lead in the region’s data-driven economy.