For the Gulf States, Investment in AI Is Partly About U.S. Protection
Foreign Policy
by Steven A. CookFebruary 23, 2026
AI-Generated Deep Dive Summary
The Gulf states—Saudi Arabia, Qatar, and the United Arab Emirates—are making significant investments in artificial intelligence (AI) to diversify their economies and prepare for a future beyond hydrocarbons. These nations recognize AI as a transformative technology that can reshape industries and societies, aligning with global trends where major powers like the U.S. and China are also competing heavily in AI development. The UAE, Saudi Arabia, and Qatar have each taken distinct approaches to advancing their AI capabilities, reflecting their unique priorities and strategic goals.
The UAE emerged as an early leader in the Gulf, establishing a national AI strategy as far back as 2017 and appointing a minister of state for artificial intelligence. This initiative is part of broader efforts to position Abu Dhabi and Dubai as global tech hubs, including the development of ambitious projects like the Stargate data center. Saudi Arabia has linked its AI investments to Crown Prince Mohammed bin Salman's Vision 2030 reform agenda, even though AI was not explicitly mentioned in the original document. The kingdom created the Saudi Data and AI Authority in 2019 and launched a national strategy for the technology, while state-owned energy giant Aramco has been leveraging AI for its operations since 2018.
Qatar's AI efforts have been slower to develop compared to its Gulf neighbors, with Doha focusing on other investments like media, universities, and lobbying in Washington. However, Qatar ramped up its AI initiatives late last year by establishing the national AI company Qai under the Qatar Investment Authority. These investments reflect a growing recognition among Gulf leaders that AI is not just an economic tool but also a critical element of future geopolitical competition, particularly as the U.S., China, and other global powers race to dominate this emerging technology.
This shift matters politically because it signals a broader transformation in the Gulf's economic strategy. By investing heavily in AI, these nations aim to reduce their reliance on hydrocarbons and position themselves as key players in the global tech economy. The competition for AI leadership also has implications for U.S.-Gulf relations, as both sides seek to leverage technological advancements for strategic advantage. For readers interested in politics and international relations, this trend highlights the evolving dynamics of power and economic diversification in the Middle East.
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Originally published on Foreign Policy on 2/23/2026