The Gulf Bets Big on AI as It Seeks the 'New Oil'
TL;DR
- The UAE and Saudi Arabia are forging partnerships with the US to become leading AI hubs.
- A multibillion-dollar AI campus is planned as part of ambitious infrastructural investments.
- AI is positioning as a crucial economic driver for the Gulf, akin to oil in the 20th century.
- Strategic moves include attracting international talent and reducing reliance on fossil fuels.
In a bold move that underscores the shifting landscape of global technology, the United Arab Emirates (UAE) and Saudi Arabia are increasingly positioning themselves as central players in the burgeoning field of artificial intelligence (AI). Both nations are turning to partnerships with the United States to establish themselves as significant AI hubs, focusing on creating infrastructure that mirrors their historical dependency on oil.
Investment in Infrastructure
One of the most significant developments is the announcement of a sprawling new AI campus as part of a joint UAE-US initiative, described as the largest of its kind outside the United States[^1]. This ambitious project underscores the Gulf's determination to emerge at the forefront of the global AI map, alleviating its reliance on oil revenues. Technology experts, including Mohammed Soliman of the Middle East Institute, emphasize that "compute is the new oil," indicating a shift in how value is perceived in the modern economy[^2].
Abu Dhabi, a driving force in this initiative, has unveiled plans for a massive data center cluster, designed to host companies such as OpenAI and others[^3]. This cluster is essential for the development of AI, as it supports the training of powerful AI models through significant computational resources.
Strategic Partnerships and Technology Alliances
During recent diplomatic engagements, including a visit from former President Donald Trump, the White House approved eased restrictions on exporting advanced microchips from US firm Nvidia to the UAE and Saudi Arabia[^4]. This marks a significant shift, reflecting how the US is acknowledging its Gulf partners as critical allies in the tech arena. The Gulf states are leveraging their sovereign wealth, energy resources, and strategic geographic positioning to create a robust AI infrastructure[^5].
Additionally, the Public Investment Fund of Saudi Arabia has initiated its AI company, Humain, which is projected to build "AI factories" using a large scale of Nvidia chips within the next few years[^6]. This marks a pivotal transition from the Gulf states being mere investors in foreign technology firms to becoming active players in the development of technology themselves.
Challenges Ahead
While the ambitions in AI are commendable, both the UAE and Saudi Arabia face significant hurdles in attracting an adequate workforce of skilled AI professionals[^7]. The UAE is countering this challenge by offering incentives such as low tax rates, long-term visas, and lighter regulatory frameworks to entice foreign companies and researchers to set up operations in the region[^8].
The competitiveness of this new technological landscape also compels the Gulf nations to navigate relationships cautiously, especially with China, as they have begun to limit reliance on Chinese technology[^9].
Conclusion
The Gulf region's investment in AI infrastructure marks a transformative period as it seeks to redefine its economic future post-oil. As the UAE and Saudi Arabia continue to develop their capabilities in AI, their strategies will likely yield significant implications for both local and global economies. The strong push towards becoming AI hubs represents not just a diversification of economic resources, but a shift in the geopolitical balance concerning technology and innovation in the 21st century.
References
[^1]: Sameer Hashmi (2025). "The Gulf bets big on AI as it seeks the 'new oil'". BBC News. Retrieved October 27, 2025.
[^2]: Mohammed Soliman (2025). "I had the chance to speak with the BBC about the Gulf’s AI bets and what they mean for the global technology map". LinkedIn. Retrieved October 27, 2025.
[^3]: Sameer Hashmi (2025). "The Gulf bets big on AI as it seeks the 'new oil'". X (formerly Twitter). Published 31 July 2025.
[^4]: Jogesh Ajay (2025). "The Gulf is making a bold bet: AI is the new oil". LinkedIn. Retrieved October 27, 2025.
[^5]: J.O. Comms (2025). "The Gulf Bets Big On AI As It Seeks The 'New Oil'". X (formerly Twitter). Published 31 July 2025.
[^6]: SEPE (2025). "The Gulf bets big on AI as it seeks the 'new oil'". SEPE. Retrieved October 27, 2025.
[^7]: Spiros Margaris (2025). "The Gulf bets big on AI as it seeks the 'new oil'". X (formerly Twitter). Published 31 July 2025.
[^8]: World News (2025). "The Gulf bets big on AI as it seeks the 'new oil'". Facebook. Retrieved October 27, 2025.
[^9]: SEPE (2025). "The Gulf bets big on AI as it seeks the 'new oil'". SEPE. Retrieved October 27, 2025.
Keywords: Gulf, AI, UAE, Saudi Arabia, technology, new oil, investment, infrastructure, compute, partnerships