The global competition over artificial intelligence leadership is increasingly moving beyond traditional tech powerhouses like the U.S. and China to include Gulf nations such as Saudi Arabia and the United Arab Emirates. These oil-rich states are investing heavily in AI technology and infrastructure as part of long-term economic diversification strategies aimed at reducing dependence on fossil fuels and building knowledge-based economies. Their efforts include developing data centers, advanced computing capacity, and AI research initiatives to position themselves as key players in the evolving global AI landscape.
High-level diplomatic engagement has helped accelerate this shift, with visits from U.S. leaders bringing large investment pledges and partnerships that link Gulf investment funds with American tech companies. During these engagements, Saudi Arabia and the UAE have announced collaborations with major AI and cloud technology firms to bring cutting-edge hardware, training programs, and digital infrastructure to the region. These partnerships aim to develop sovereign AI capabilities and foster local talent in data science and machine learning.
The strategy in the Gulf goes beyond simple infrastructure spending. Countries like Saudi Arabia and the UAE are not just importing technology — they are building local AI ecosystems with national companies, sovereign funds, and regulations that encourage both domestic innovation and global collaboration. Initiatives include launching national AI entities, large computing deployments, and talent development programs that aim to make the region competitive in research and commercial applications of AI.
This shift reflects larger geopolitical and economic dynamics. Gulf states are using AI as a form of soft power and economic leverage, hoping to attract international tech companies and investors while diversifying growth beyond hydrocarbons. Their growing role in AI also stems from strategic balancing between global powers, navigating partnerships with both the United States and China to maximize technology access and investment opportunities.
