The 20th century belonged to oil. The 21st will belong to AI. And nowhere is the economic war over artificial intelligence more fiercely contested than in the Persian Gulf. Between Dubai, Riyadh, Doha, and Kuwait, the race is on to claim the title of regional AI powerhouse. In this high-stakes competition, one small country of just 10 million residents has pulled far ahead of its rivals: the United Arab Emirates (UAE).
Qatar: A Wealthy Outsider in the AI Game
Qatar, despite its high per capita income and economic heft, remains a second-tier player in the AI arena. While the Qatar Investment Authority (QIA) has pledged $1 billion to the regional startup ecosystem and €10 billion to tech investments in France, these numbers pale in comparison to UAE artificial intelligence investments.
Today, Qatar makes headlines more for real estate buys in Europe, sports teams (congratulations on their first Champions League title, just 12 years after buying PSG!), and media presence than for technological clout. Doha has chosen to focus on niche tech areas rather than building a comprehensive AI ecosystem. A modest yet perhaps pragmatic path for a nation of just 3 million.
Saudi Arabia: Always the Runner-Up
Despite its traditional regional dominance and energy wealth, Saudi Arabia struggles to keep pace. Riyadh has made bold announcements—$40 billion into AI, followed by $150 billion into tech startups, and a broader $600 billion into the U.S. economy. Yet it still lags behind UAE artificial intelligence investments.
At the latest FII summit, the Saudi Public Investment Fund (PIF) unveiled a dedicated $40 billion AI fund in collaboration with Andreessen Horowitz and Sequoia Capital. While this shows ambition, it remains embryonic when compared to the UAE’s already functional AI ecosystem.
Saudi investments appear designed to remain relevant in the tech race, whereas the Emiratis invest with clear intent to dominate. Riyadh’s strategy focuses on general economic diversification, not pure AI supremacy. Time will tell if this diluted approach pays off.
UAE: The Ultimate Strike Force in AI
$1.4 trillion. More than the annual budgets of Japan or the UK. Three times France’s state budget. That’s what the UAE is funneling into the U.S. over ten years, with a significant chunk earmarked for AI infrastructure and semiconductors.
With $1.7 trillion in assets managed by its sovereign wealth funds, Abu Dhabi’s financial clout is massive. Multiply Group, a tech-centered fund, targets over $100 billion in AUM. Its investment of €30 to €50 billion into creating Europe’s largest AI campus in France marks the most significant foreign investment on the continent since 2016.
ADQ, another sovereign fund, is teaming up with Energy Capital Partners to invest $25 billion into U.S. data centers—critical infrastructure for AI. IHC, one of the Gulf’s most valuable companies, is a major player too. It holds shares in Palantir and is developing Aleria, a sovereign AI platform engineered entirely in the UAE.
At the helm of this strategic offensive is Sheikh Tahnoon bin Zayed, chairman of ADIA ($790 billion) and architect of the UAE’s AI strategy. This unique concentration of power allows for unmatched execution across national security, finance, and technology.
Kuwait, Bahrain, Oman: Bystanders in the AI Revolution
Other Gulf monarchies lag far behind. There’s no major AI investment, no structured strategy, and no sovereign tech funds in sight. Kuwait is bogged down by political infighting. Bahrain bets solely on its financial sector. Oman focuses on tourism. These choices effectively remove them from the AI race—a risky complacency as oil-dependent economies face inevitable decline.
Why the UAE Dominates AI in the Gulf
The UAE’s dominance isn’t accidental. It’s rooted in strategic foresight: positioning Abu Dhabi and Dubai as the Singapore of artificial intelligence.
One key factor? Sheikh Tahnoon bin Zayed, a man with unmatched decision-making power across sectors. Named “Most Influential Arab of 2025” by Gulf Business, he recognized the AI inflection point before others did.
The Emirates also began diversifying early, since the early 2000s, building up tech and finance expertise that neighbors still lack. In contrast to Saudi Arabia, the UAE embraces foreign talent without religious or cultural restrictions, making it a true international hub.
But what truly sets them apart is long-term vision. While others invest for buzz or quick returns, the UAE is methodically constructing the AI ecosystem of tomorrow.
The Bet of the Century
With over $200 billion already committed and more to follow, UAE artificial intelligence investments represent a bold gamble: to become an indispensable node in the global AI economy.
For a young nation without deep-rooted tech traditions, this might seem audacious. But the UAE holds the winning trio: capital, leadership, and vision. When future historians trace the origins of the AI revolution, they may very well conclude that it was bankrolled from the desert.
