The phrase “data is the new oil” has added meaning in the Gulf. Leaders in the region are investing heavily in artificial intelligence to diversify and modernise their fossil fuel-dependent economies. “Instead of exporting oil, we will export data,” said Saudi Arabia’s minister of finance, Mohammed al-Jadaan, early this year.
The ambition makes sense. AI requires lots of capital, land and energy. The Gulf has all those in abundance. Humain, Saudi Arabia’s new state-owned AI company, is backed by the country’s $940bn Public Investment Fund. Abu Dhabi, which manages $1.7tn in sovereign wealth funds, is investing through AI fund MGX. Last month, during President Donald Trump’s visit to the region, both funds helped to develop partnerships with US tech companies, securing access to chips and talent in exchange for money and data centre hosting facilities.
The timing is apt too. The International Energy Agency forecasts oil demand to peak by the end of this decade. Done well, the Gulf’s foray into AI could drive up investment, improve productivity and ease cost burdens in the region’s hefty civil services. According to McKinsey, AI adoption could boost the Gulf Cooperation Council economies by $150bn. But success is not guaranteed. Significant hurdles lie in the way.