UAE, Saudi Arabia, and Qatar pledged $2 trillion spending can buy tech superpower

During U.S. President Donald Trump's Middle East tour last month, the United Arab Emirates, Saudi Arabia, and Qatar pledged $2 trillion in agreements, igniting a discussion about whether big expenditure can purchase tech powerhouse status.

 Saudi Arabia pledged $600 billion over four years, Qatar set aside $1.2 trillion, and the United Arab Emirates announced it would contribute $200 billion to its current artificial intelligence development plan of $1.4 trillion.  Signing historic partnership contracts in the fields of AI research facilities, computer chips, defense systems, aviation, and energy were Nvidia, Google, Oracle, AMD, and Amazon Web Services.

 The crucial difference between ambition and success in the Gulf's aspirations to join the US and China as an AI hub will be implementation.  The transition from pilot initiatives to actual implementation, regulatory limitations, and a lack of talent

The crucial difference between ambition and success in the Gulf's aspirations to join the US and China as an AI hub will be implementation.  Tech CEOs told Rest of World that instead of depending solely on investments, institutions must be built to address talent shortages, regulatory gaps, and the transition from pilot projects to actual implementation.

 "Once massive spending translates into true technological leadership, the Gulf will be an AI superpower," stated Prabhakar Posam, group chief information officer at the logistics company Transworld Group, based in Dubai.  "The groundwork is in place thanks to a wealth of funding and political backing, but success will ultimately depend on the development of knowledgeable personnel and established institutions.

The promised investments mark a defining moment in the Middle East’s resolve to look beyond oil as its governments and companies double down on technology as a driver of economic transformation. More than 65% of the region’s organizations are planning to increase their AI spending, according to research conducted in February by Deloitte and the Mohamed bin Zayed University of Artificial Intelligence.

With its governments and businesses doubling down on technology as a catalyst for economic development, the projected investments represent a turning point in the Middle East's determination to go beyond oil.  According to a February study by Deloitte and the Mohamed bin Zayed University of Artificial Intelligence, over 65% of the region's businesses intend to raise their AI expenditures.

Wednesday, 25 June 2025