The United Arab Emirates is making a strategic push to establish itself as a global leader in artificial intelligence, leveraging its financial resources and geopolitical position to attract cutting-edge technology investments.
Earlier this year, a high-profile visit by a U.S. president to the UAE culminated in the announcement of a major AI campus—a collaborative effort between the two nations. Positioned as the largest AI infrastructure hub outside the U.S., the project underscores the Gulf’s ambition to become a key player in the AI revolution.
This initiative aligns with a broader shift in U.S. policy, as Washington recently relaxed export controls on advanced microchips to the UAE and Saudi Arabia—a clear signal that the Gulf states are now viewed as crucial partners in the global tech race.
For oil-rich nations like the UAE and Saudi Arabia, AI represents a pathway to diversify their economies beyond fossil fuels. Massive investments are being funneled into data centers, which serve as the backbone for AI development. One such project, known as “Stargate,” involves a multi-billion-dollar data center cluster backed by Emirati tech firm G42, with support from industry giants like Nvidia, Cisco, and Oracle.
“Just as the UAE transformed into a global aviation hub, we are now positioning ourselves as a leader in AI and data infrastructure,” said the head of the country’s largest data center operator.
The Gulf’s strategic location between Asia and Europe provides a logistical advantage, but challenges remain—particularly in attracting top-tier AI talent. To address this, the UAE is offering incentives such as tax exemptions and long-term residency visas to lure foreign experts.
Yet, despite heavy investment, the region has yet to produce a homegrown AI giant comparable to global leaders like OpenAI. Analysts point to the relatively small local talent pool as a limiting factor.
The Gulf’s AI ambitions have also drawn the region into the U.S.-China tech rivalry. Recent deals suggest a tilt toward American partnerships, with the UAE scaling back some Chinese-backed projects. However, experts caution against dismissing China’s growing influence, noting its rapid advancements in AI technology.
For now, the collaboration between the U.S. and Gulf nations appears mutually beneficial—Washington gains allies in its tech competition with Beijing, while Gulf states secure a foothold in the next economic frontier. The race to dominate AI is on, and the Gulf is betting big on being at the forefront.
