Can the Gulf Buy Its Way to AI Supremacy?
Middle East nations are making an audacious bet on the future of technology, pledging a staggering $2 trillion towards artificial intelligence, semiconductors, and defense technology in a race to cement their role as the world’s next tech superpower. Countries like the United Arab Emirates (UAE), Saudi Arabia, and Qatar are pouring money into cutting-edge infrastructure and global partnerships, hoping to achieve AI dominance to rival the United States and China — but experts say investment alone may not be enough.
The UAE announced it would add $200 billion to its existing $1.4 trillion AI strategy, including the development of what is described as the world’s largest AI campus outside the U.S., led by state-backed AI firm G42. Meanwhile, Saudi Arabia secured $600 billion worth of deals with tech giants including Nvidia, AMD, and Amazon Web Services (AWS). Not be outdone, Qatar has revealed plans to invest $1.2 trillion in sectors such as aviation and quantum computing.
This investment blitz follows U.S. President Donald Trump’s diplomatic visit to the region last month, which acted as a catalyst for the massive economic pledges. The deals span a wide range of sectors and include partnerships with tech titans like Google, Oracle, Salesforce, and Qualcomm, covering areas from AI research and chip manufacturing to defense, aviation, and digital infrastructure.
But experts warn that spending big doesn’t guarantee technological leadership. The Gulf’s leap from ambition to realization requires more than capital—it demands institutions, governance, and homegrown talent.
“The Gulf will be an AI superpower once massive spending turns into genuine technological leadership,” said Prabhakar Posam, Group Chief Information Officer at Dubai-based Transworld Group. “The foundation exists through abundant capital and political support, but developing skilled workers and mature institutions will determine ultimate success.”
A recent report by Deloitte and the Mohamed bin Zayed University of Artificial Intelligence revealed that over 65% of the region’s organizations are planning to increase their AI spending. This signals a clear intent among public and private sectors to pivot away from oil dependency and embrace technology-driven economies.
Saif Mashat, Area Vice President for the Middle East and Africa at ServiceNow, emphasized, “The capital and political will are already in place. The next step is building the governance, talent, and operating models needed to deliver results at scale.”
Central to the region’s plans is the construction of massive infrastructure. In Saudi Arabia, the crown jewel is the 500-megawatt network of ‘AI factories’, constructed in partnership with Nvidia, employing tens of thousands of GPUs, including 18,000 of Nvidia’s latest Grace Blackwell superchips. The deal is part of long-term aspirations laid out by Crown Prince Mohammed bin Salman, who hinted at expanding total investments from $600 billion to $1 trillion in the near future.
Additional Saudi deals include a $10 billion collaboration with AMD, a joint $5 billion AWS AI Zone, and a host of other initiatives with Qualcomm, Oracle, and Uber. Meanwhile, Datavolt, a Saudi-based AI data infrastructure company, announced an ambitious $20 billion investment into U.S.-based AI datacenters.
Much of Saudi Arabia’s tech leap is being orchestrated through its Public Investment Fund, fueling megaprojects like the Neom smart city, and the recently unveiled AI entity Humain. The kingdom also directed $142 billion toward U.S. defense systems, forming the largest arms deal in American history.
“U.S. partnerships have added value through knowledge exchange and innovation,” Sid Bhatia, Area Vice President and General Manager of AI at U.S.-based Dataiku, explained. “However, the Gulf’s AI momentum is driven primarily by local leadership, vision, and investment.”
The UAE, meanwhile, has taken a structured approach since creating the world’s first minister of AI in 2017. Its Falcon language models and ASK71 platform power government operations, providing Arabic-English AI assistants that automate processes and streamline public service delivery.
“Saudi Arabia is building the infrastructure and ecosystems that could give it an edge over time,” said Chiara Marcati, Chief AI Advisory and Business Officer at state-backed AI firm AI71. “The UAE moved early and is already delivering results.”
In Qatar, the vision is more specialized. The Gulf emirate pledged $1.2 trillion focused on defense tech, quantum computing, and aviation. Its national carrier, Qatar Airways, announced the world’s largest aircraft order — $96 billion for 210 Boeing jets — while Quantinuum launched a quantum computing joint venture with Al Rabban Capital.
The Gulf’s edge may ultimately come from doing things differently, say regional analysts. Rather than copying Silicon Valley or Beijing, these nations are trying to create distinct frameworks that align with regional cultures, economic structures, and priorities.
“U.S. support matters, particularly when it comes to private sector investment and technology partnerships,” Mashat emphasized. “But long-term positioning will depend more on regional ownership of strategy, infrastructure, and talent rather than on external backing.”
The U.S. role in this transformation brings global credibility and faster capability transfer, especially as companies like ServiceNow commit funds—$500 million in its case—to accelerate the transition from pilot AI projects to real-time enterprise applications.
While Saudi Arabia focuses on scale, creating national platforms connected to megaprojects like Neom, the UAE is already working on mature policy frameworks, talent pipelines, and cross-sector AI pilots.
“The UAE has taken an early lead in policy frameworks, institutional readiness, and pilot projects,” Mashat said. “Saudi Arabia is operating on a different scale. The focus is on becoming a global AI hub.”
Despite headwinds—talent gaps, regulatory fragmentation, and the risks of scaling too quickly—the vision remains bold, and many in the industry are optimistic.
“The region is investing heavily in AI infrastructure and talent development,” noted Avneesh Prakash, CEO of Dubai-based company Camb.ai. “This will not just ensure technology independence but also address global AI demands.”
Only time will tell if trillions in petrodollars can buy a seat at the world’s AI superpowers table. For now, the Middle East has more than shown its intent.
— Team V.DIR-EM-UAE
