UAE and Saudi Arabia Aim to Become AI Leaders with US Partnerships

UAE and Saudi Arabia Aim to Become AI Leaders with US Partnerships

The UAE and Saudi Arabia are making significant strides in the field of artificial intelligence, heavily investing in AI technologies and collaborating with the US to position themselves as global leaders in AI innovation. This push towards AI development has the potential to redefine both economic and technological dominance within the region.

For decades, the Gulf countries have thrived on their vast oil reserves, which have been the cornerstone of their economic prosperity. However, recognising the need to diversify their economies and reduce reliance on oil, these nations are exploring other avenues for growth.

Artificial intelligence has emerged as a promising sector, capable of transforming various industries, from healthcare to finance, and enhancing efficiency and productivity.

Building a Regional AI Ecosystem

Both countries are not only investing financial resources but also establishing educational programmes, research institutions, and strategic alliances to ensure a robust AI ecosystem. By fostering innovation and drawing on the expertise of global leaders like the US, the UAE, and Saudi Arabia aim to spearhead the next wave of technological advancements.

A notable aspect of this transformation is the strategic formation of sovereign AI entities, such as Saudi Arabia’s AI-focused investment arm under the Public Investment Fund and the UAE’s Artificial Intelligence Office. These bodies are not merely funders but active shapers of AI policy and infrastructure.

Their mandate often includes setting ethical standards, curating data policies, and incentivising private sector involvement. This top-down commitment accelerates AI deployment across public services, including traffic management, education platforms, and judicial systems, giving these nations a unique opportunity to embed AI at scale from the ground up.

AI as Economic Strategy and Geopolitical Leverage

The geopolitical dimension of these AI ambitions cannot be overlooked. As global tensions around technological sovereignty and data security escalate, the Gulf states’ efforts to cultivate indigenous AI capabilities serve both as an economic hedge and a geopolitical statement.

By positioning themselves as AI exporters rather than perpetual adopters, the UAE and Saudi Arabia aim to influence future global norms and markets. This approach insulates their long-term competitiveness in a world increasingly defined by data and algorithmic influence.

Key Data Points

  • Massive AI Investments & US Partnerships:
    The UAE and Saudi Arabia are heavily investing in artificial intelligence to diversify their economies beyond oil. In 2025, the UAE announced a $1.4 trillion decade-long investment framework for AI—in partnership with the United States—including the planned construction of “Stargate UAE,” a 5GW AI technology campus in Abu Dhabi. Saudi Arabia sealed a $14.9 billion AI investment package at the LEAP 2025 conference in Riyadh and launched “Humain,” a sovereign AI entity to drive AI development under its Vision 2030 plan,
  • AI Infrastructure & Cloud “Arms Race”:
    Saudi Arabia and the UAE are racing to build some of the world’s largest AI data centres. Saudi Arabia is on track for over 2,200MW of future capacity, compared to the UAE’s planned 500MW. Projects in both nations involve global tech companies (e.g., Google, Amazon, Oracle, Nvidia) and focus on building regional cloud and data infrastructure, enabling local innovation and supporting massive AI model training.

References

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