The Gulf’s AI Race: How the UAE Pulled Ahead

A new economic war, fueled by artificial intelligence

If the 20th century was shaped by oil, the 21st belongs to artificial intelligence. In the Gulf region, a silent yet decisive battle is unfolding — not for territory or energy, but for supremacy in the technology of the future. Between Dubai, Riyadh, Doha, and Kuwait City, nations are scrambling to invest in AI, but one country is clearly in the lead: the United Arab Emirates.

Qatar: a small player with selective ambitions

Qatar, despite its immense per capita wealth and strategic investments, remains a minor player in the AI race. While the Qatar Investment Authority has pledged $1 billion for regional startups and $10 billion for tech investments in France, these figures pale in comparison to the UAE’s bold offensive.

Today, Qatar makes more headlines for real estate deals and sports — including its historic UEFA Champions League win with PSG than for technology. Rather than building a comprehensive AI ecosystem, Doha is targeting niche technologies, a more modest yet possibly pragmatic approach for a nation of 3 million.

Saudi Arabia: the eternal second

Saudi Arabia, the UAE’s traditional rival, has announced huge figures — $40 billion for AI and $150 billion for tech startups, with an additional $600 billion in broader US investments. Yet Riyadh’s strategy lacks precision. Its massive sovereign fund, the PIF, focuses on general economic diversification, not on AI specialization. While the kingdom has the landmass and oil wealth, it’s still chasing the UAE’s tail.

The core difference? Saudi Arabia is investing to participate in AI. The UAE is investing to dominate it.

The UAE: financial firepower and strategic clarity

$1.4 trillion. That’s the scale of the UAE’s latest investment pledge in the US over ten years, with a significant share allocated to AI infrastructure and semiconductors. Backed by $1.7 trillion in sovereign wealth, Abu Dhabi commands unmatched financial influence.

Multiply, a tech-focused Emirati fund, aims to exceed $100 billion in assets under management. A €30–50 billion investment in France to build Europe’s largest AI campus marks the biggest foreign investment on the continent since 2016. ADQ is partnering with Energy Capital Partners to build $25 billion worth of data centers in the US. IHC, one of the Gulf’s largest public companies, has invested in Palantir and is developing its own sovereign AI, Aleria.

Behind this grand strategy stands Sheikh Tahnoon bin Zayed, head of ADIA ($790 billion) and national AI strategy director — a rare fusion of economic, security, and technological control.

Kuwait, Bahrain, and Oman: missing the tech train

The rest of the Gulf is lagging behind. Kuwait is paralyzed by political infighting. Bahrain is focused on its financial hub. Oman bets on tourism. None have announced major AI investments or coherent national strategies. They risk being left behind as the region shifts from oil to algorithms.

Why the UAE leads

The UAE’s dominance is not accidental. It stems from a clear long-term vision: turn Abu Dhabi and Dubai into the Singapore of AI. Early diversification, international openness, and a strategic embrace of foreign talent set the Emirates apart. While others seek quick wins, the UAE is building the global AI ecosystem of tomorrow.

The bet of the century

With $200 billion already deployed and hundreds more on the horizon, the UAE is making the century’s boldest economic bet: to become a global AI superpower. It’s a remarkable ambition for a small desert country — but with capital, leadership, and vision, it just might succeed.