The UAE’s AI Power Play: Why the Gulf’s Smallest Giant Is Winning Big

From oil to algorithms

In the 20th century, Gulf nations ruled the energy economy with oil. Today, they’re vying to own the future of artificial intelligence. And among the desert monarchies of the Gulf, it’s not Saudi Arabia or Qatar taking the lead — it’s the United Arab Emirates.

Qatar talks big, spends small

Qatar may be rich, visible, and media-savvy — but when it comes to tech, it’s playing catch-up. Investments in European startups and a €10 billion France tech package are impressive on paper, yet nowhere near the scale needed to compete with the UAE’s AI juggernaut.

Saudi Arabia invests to stay relevant

Riyadh’s announcements are loud: $40 billion for AI, $150 billion for tech startups, hundreds of billions more abroad. But Saudi strategy lacks cohesion. The focus is economic diversification, not AI mastery. It’s an effort to be in the room, not to lead the room.

The UAE is not joining the race it’s designing the track

$1.4 trillion over a decade, aimed squarely at AI infrastructure, semiconductors, and US-based data centers. With $1.7 trillion in sovereign assets, Abu Dhabi is building the future from scratch. From G42 to IHC, they are also creating its own sovereign AI "Aleria". The UAE’s approach is clear: total dominance.

One man, one strategy

At the heart of this machine is Sheikh Tahnoon bin Zayed, a rare mix of intelligence chief, investment titan, and strategic mastermind. He’s not just funding the future; he’s scripting it.

Meanwhile… Kuwait naps, Bahrain banks, Oman dreams

The rest of the Gulf? Missing in action. No bold strategies, no massive funds, no presence in global AI. In a world shifting from fossil fuels to digital brains, that’s not just risky — it’s fatal.

The long game

The UAE isn’t investing for headlines. It’s investing to shape the infrastructure of the 21st century. Where others dabble, it builds. When the story of AI’s global rise is told, don’t be surprised if the UAE plays a starring role not in the lab, but in the funding that made it possible.