Gulf States Invest in AI to Replace Oil Revenues

The Gulf region is making significant investments in artificial intelligence (AI) infrastructure, aiming to position itself as a global leader in the technology and reduce its dependence on oil revenues. A notable development was the announcement of a major UAE-US AI campus, the largest outside the US, during former US President Donald Trump’s visit to the UAE. This initiative includes partnerships with tech giants like Nvidia, Cisco, and Oracle, which will help build AI data centres in Abu Dhabi. These centres, such as the ‘Stargate’ project led by G42, aim to provide the computational power necessary for training AI models. The Gulf is also transitioning from passive investment in foreign tech firms to actively developing its own AI capabilities, with Saudi Arabia’s Public Investment Fund launching Humain, an AI company to build ‘AI factories’. The UAE is offering incentives like tax breaks and long-term visas to attract global AI talent, although attracting highly skilled professionals remains a challenge. Despite the strong push for AI, geopolitical dynamics are at play, with the US making strategic moves in the region to counter China’s influence. The Gulf’s AI investments are seen as a way to diversify its economies and ensure long-term growth beyond oil, though the region is still working to build its research talent and companies capable of competing on the global AI stage.