Gulf Invests in AI as the 'New Oil'

Published on Jul 31, 2025.
Gulf Invests in AI as the 'New Oil'

The Gulf nations are making a significant strategic shift towards artificial intelligence (AI), viewing it as the 'new oil' in a post-oil economy. This evolution is vital not just for regional economies but has global implications as it reflects broader trends in technological innovation and investment, especially in the context of geopolitical dynamics. As countries like the UAE and Saudi Arabia invest heavily in AI infrastructure, they aim to foster economic diversification away from fossil fuels, ensuring resilience in an era where traditional energy sources may wane.

At the heart of this transformation is the establishment of massive data centers designed to support AI development. The UAE’s Stargate project, a collaboration with US tech giants, exemplifies this ambition. It will serve high-capacity AI models powered by advanced microchips from Nvidia. The comparison being made by experts, such as Mohammed Soliman of the Middle East Institute, highlights that just as oil served as a foundation for industry in the past, compute power is now the essential resource for the AI-driven future. Gulf nations aim to become AI powerhouses, attracting tech talent and establishing themselves as vital players in the global AI landscape. This shift also shapes the region's relationships, particularly with the United States and China, affecting technology alliances and economic competition.

In summary, the Gulf's pivot to AI represents a significant step towards economic diversification and establishes the region as a central player in global tech. As nations invest in AI infrastructure and talent, they navigate complex geopolitical waters, particularly in their relations with powerhouses like the US and China. For those interested in exploring AI's development and implications further, numerous resources are available, including research papers on artificial intelligence, regional investment reports, and analyses of AI's role in shaping future economies.

AITECHNOLOGYGEOPOLITICSGULF STATESECONOMIC DIVERSIFICATION

Read These Next

img
innovation

Neuralink's Leap Forward in Brain-Computer Interfaces

A commentary on a groundbreaking achievement in brain-computer interface technology involving a woman who was able to write her name after 20 years of paralysis, highlighting its scientific significance and societal implications.