Saudi Arabia and the United Arab Emirates (UAE) are making major advances in artificial intelligence (AI) as part of efforts to diversify their economies beyond oil dependency. Recognizing AI’s transformative potential, both Gulf nations are heavily investing in technology infrastructure, partnerships, and talent acquisition to become leading innovation hubs in the Middle East. Saudi Arabia has launched significant initiatives, including a $10 billion venture fund by Humain, a Saudi-backed entity supporting AI startups across sectors like healthcare, finance, and logistics. This fund underscores the kingdom’s commitment to integrating AI into its economic framework. Additionally, Saudi Arabia partners with top US firms such as Nvidia and AMD to gain access to cutting-edge AI hardware and software, facilitating knowledge exchange and enhancing its competitive AI ecosystem within national development plans. Similarly, the UAE pursues ambitious AI projects like the Stargate data center initiative in collaboration with OpenAI, positioning itself as a regional AI research and data processing hub. By combining advanced infrastructure with strategic partnerships, the UAE aims to attract international AI companies and talent, boosting its capacity to manage large datasets essential for AI progress. Despite these strides, both nations face challenges, notably a shortage of local AI professionals. Although investments in education and training exist, demand outpaces supply.

To address this, the Gulf countries offer attractive policies—such as low taxes and long-term visas—to draw foreign experts, entrepreneurs, and startups. Ethical concerns also arise, particularly about surveillance and data privacy amid the governments’ use of AI for security. Critics warn of potential misuse and rights infringements, necessitating careful regulation to balance innovation with privacy and human rights. Furthermore, dependence on Western technology and expertise invites strategic worries, especially from the US, regarding the risk of sensitive technology leaking to rivals like China. This has led to cautious engagement and greater scrutiny from Western partners. Nonetheless, Saudi Arabia and the UAE proactively foster international collaboration by creating favorable investment climates with minimal taxation and residency incentives. These efforts seek to make the region attractive to AI researchers, developers, and companies looking for growth and partnerships. In summary, Saudi Arabia and the UAE are positioning themselves as Middle Eastern AI leaders through substantial investments, strategic global partnerships, and policies promoting innovation and talent attraction. While challenges in talent availability and ethical governance remain, their focused initiatives and international cooperation highlight a determined shift from oil dependence toward a future centered on artificial intelligence.