AI adoption pushes Gulf enterprise networks toward capacity crunch

86% of Saudi firms and 81% of UAE organisations expect network capacity limits as AI use accelerates

Rapid AI adoption is placing enterprise networks across the Gulf under growing pressure. A new Cisco study shows that most organisations in Saudi Arabia and the UAE expect their campus and branch networks to reach capacity limits within the next few years.

Cisco conducted the research with Foundry. The survey covered 200 IT leaders in Saudi Arabia and another 200 in the UAE.

The findings show that 86% of Saudi organisations have already reached or expect to reach network capacity limits within the next 24 months. In the UAE, 81% expect to hit similar limits within three years.

AI traffic is set to more than triple

The report says AI-driven network traffic will more than triple across both countries over the next three years. Agentic AI will generate the largest share of that increase.

Saudi organisations expect agentic AI workloads to raise network traffic by 116%. In the UAE, those workloads are projected to increase traffic by 126%, the highest among all AI workload categories.

Unlike traditional software, AI agents constantly exchange data with cloud services, databases and APIs. As companies deploy more AI agents, network traffic becomes heavier and more complex.

Saudi Arabia leads enterprise AI agent deployment

Saudi Arabia is moving quickly to roll out AI agents across businesses. More than 40% of organisations already use AI agents across the enterprise. That is higher than the global average of 33%.

The UAE is also expanding AI adoption. Around 34% of organisations report enterprise-wide AI agent deployments. In addition, 99% of UAE respondents expect agentic AI use to grow during the next two years.

These figures show that Gulf organisations continue to adopt advanced AI technologies faster than many global markets.

Wi-Fi and security top the list of concerns

Many organisations say their wireless networks are becoming a major bottleneck.

About 46% of Saudi respondents and 50% of UAE respondents identified Wi-Fi as the main source of rising capacity demand.

Security challenges are also increasing. Around 93% of Saudi organisations and 91% of UAE organisations struggle to keep pace with AI-related cyber risks. Moreover, 87% of Saudi respondents and 89% of UAE respondents say AI-related security incidents have already caused damage.

Network visibility remains another concern. 58% of Saudi organisations and 54% of UAE organisations say they cannot fully monitor AI-generated network traffic. As a result, detecting security threats becomes more difficult.

Budget pressures slow network upgrades

Many organisations understand that they need stronger network infrastructure. However, budgets continue to limit investment.

In the UAE, 42% of IT leaders say budget constraints significantly slow network modernisation. In Saudi Arabia, 34% report the same challenge.

The findings suggest that AI adoption is moving faster than infrastructure spending.

Confidence in AI exceeds confidence in infrastructure

The study also highlights a growing confidence gap.

About 74% of Saudi IT leaders and 76% of UAE IT leaders say they have greater confidence in their AI strategy than in their network’s ability to support it.

The regional findings reflect Cisco’s wider global research. The company surveyed more than 3,400 IT decision-makers across 15 countries.

Globally, AI-related campus and branch network traffic grew 36% during the past year. Cisco expects another 96% increase over the next 12 months.

The company’s AI Readiness Index also shows that only 15% of organisations believe their networks can support AI at scale. Meanwhile, 73% already face or expect to face campus and branch network capacity limits within the next two years.