The Gulf’s Moment to Lead in AI Has Arrived

The rapid rise of generative AI has triggered a global wave of innovation, supported by substantial investments from both public and private sectors. This surge in momentum comes at a time of geopolitical tension and economic volatility, from shifting U.S. foreign policies and heightened U.S.-China rivalries to the war in Ukraine.

Amid this global uncertainty, Gulf nations — particularly the UAE, Saudi Arabia, and Qatar — have a unique window of opportunity. With their strategic relationships spanning East and West, these countries are ideally placed to become global connectors in shaping the AI future.

A Clear Vision Beyond Oil

For years, Gulf countries have been actively working to diversify their economies away from oil. Technology, AI, and data lie at the heart of their national visions. According to PwC, AI could contribute up to $135 billion to Saudi Arabia’s GDP by 2030 — a figure that underscores the scale of potential impact.

Mega-projects like Neom in Saudi Arabia and large-scale cloud infrastructure investments — including Amazon Web Services’ $5.3 billion initiative — highlight this strategic shift. In the UAE, institutions such as the Mohamed bin Zayed University of Artificial Intelligence symbolize a strong commitment to tech-driven development.

Now is the time to double down on these efforts and focus on building sovereign, future-proof capabilities in AI and data.

Foundations for a Thriving AI Ecosystem

To lead in the AI era, Gulf nations must focus on several interconnected pillars:

1. Innovation Infrastructure
Incubators and accelerators need to produce scalable startups capable of cross-border growth. Programs like Dubai Future Accelerators offer promising models, but regional coordination is key to achieving broader impact.

2. Local Startups
There’s a need to boost support for homegrown tech ventures, especially in fields like Arabic-language AI, robotics, and climate tech. Startups like BayanPay (KSA) and Fetchr (UAE) are examples of local innovation — yet more robust ecosystems are necessary to nurture emerging talent and reduce reliance on foreign expertise.

3. Regulation and Policy
The Gulf’s relatively flexible regulatory approach is an asset. However, consistency is vital. While the UAE’s AI Ethics Guidelines mark progress, regional frameworks must be transparent, reliable, and aligned with global norms to support cross-border innovation.

4. Education and Talent Development
With youthful populations, Gulf countries have a demographic advantage. Training coders is a good start, as seen in the UAE’s plan to train 100,000 programmers, but cultivating high-level researchers, data scientists, and AI entrepreneurs is essential. Institutions like KAUST are advancing this goal, but more must be done to empower local talent.

5. Access to Capital
Despite holding some of the world’s largest sovereign wealth funds, only a small portion currently supports tech startups. This must change. Unlocking early-stage capital and encouraging partnerships between governments, investors, and the private sector is critical for real transformation.

6. Data and Computing Power
With abundant renewable energy and land resources, the region is well-positioned to develop its own cloud infrastructure. While investments from AWS and Google Cloud point to strong potential, the goal should be to move from cloud consumers to cloud creators.

7. Research Excellence
To compete globally, the Gulf must invest in foundational AI research. The Mohamed bin Zayed University of AI is already producing top talent, but more research centers are needed — ones that create original breakthroughs, not just adapt existing technologies.

8. Regional Collaboration
Individually, Gulf nations have made commendable progress. But working together could multiply their impact. Joint supercomputing projects, collaborative research on Arabic-language AI, and unified regulations could position the region as a true AI powerhouse.

AI as a Catalyst for Economic Growth

Investing in AI not only boosts one sector — it triggers growth across the board, from logistics and education to tourism and healthcare. It also creates entirely new job categories, such as AI ethics officers and prompt engineers.

To fully benefit from this transformation, Gulf nations must rethink how they prepare their workforce, equipping them with the skills and mindset for the future of work.

The Time Is Now

The global AI race is still wide open, and the Middle East has a rare chance to leap ahead. By strengthening internal capabilities and redefining international partnerships, the region can shift from being a technology adopter to a global innovator.

For the UAE, Saudi Arabia, and Qatar, this is the time to intensify their ambitions and build resilient, AI-driven economies.

Opportunities like this come once in a generation and must not be missed.