The UAE and Saudi Arabia are making significant investments in artificial intelligence (AI) to position themselves as global hubs in this field. Both countries have broken into the top 20 for AI talent, surpassing Italy and Russia. The UAE is attracting colossal, state-directed capital from sovereign wealth funds like Mubadala, ADQ, and the AI-super fund, MGX.
These entities are investing billions in national infrastructure and global technology partnerships. The country also has an active early-stage venture capital market, with the tech ecosystem attracting $1.0 billion in funding during the first half of 2025. Saudi Arabia is emerging as an AI powerhouse through a multi-faceted approach.
The nation has established the Saudi Data and Artificial Intelligence Authority (SDAIA) to accelerate AI projects. The government is providing direct support to 98% of AI initiatives and offering top talent median salaries of $420,000, along with bonuses up to $5 million and “Platinum Visas” for permanent residency. The UAE is focusing on specific sectors such as fintech, smart governance, and public services to leverage AI for improving public sector efficiency and driving technological innovation.
The rise of the UAE and Saudi Arabia in the global AI talent rankings signifies a noteworthy shift in the technology landscape.
Gulf nations’ AI infrastructure investment
This development could lead to increased competition and innovation in the AI sector globally.
The Gulf states are striving to become leading AI hubs by developing large-scale data centers. Abu Dhabi has unveiled the “Stargate” project, a massive data center cluster for OpenAI and other US firms, funded by G42, an Emirati state-linked technology firm. Tech giants like Cisco, Oracle, and Japan’s SoftBank are collaborating on this multibillion-dollar deal.
Despite these advancements, attracting highly-skilled AI talent remains challenging. The UAE is actively courting overseas companies and researchers by offering incentives such as low taxes, long-term “golden visas,” and lighter regulation. The competition between the US and China in the tech domain has found a new battleground in the Gulf.
The UAE has scaled back some China-backed projects and reduced its reliance on Huawei hardware as part of this strategic pivot. The US and Gulf nations both stand to benefit from their cooperation: the US strengthens its alliances against China, while the Gulf seeks to secure a new economic cornerstone to replace oil revenues. As the global power dynamics evolve, the Gulf’s investment in AI symbolizes a significant shift towards a tech-driven future, positioning the region as a critical player in the emerging AI economy.
