Middle East Invests Hundreds of Billions in AI Race to Drive Economic Diversification

In late December 2025, Middle Eastern nations, led by Saudi Arabia and the UAE, are investing in artificial intelligence (AI) on an unprecedented scale, with commitments exceeding $130 billion. The core objective is to drive the transition to a "non-oil economy" and hedge against oil price volatility. Under Saudi Arabia's Vision 2030, approximately 70% of its economic transformation goals are linked to AI. The UAE aims for the AI sector to contribute 20% to its non-oil GDP by 2031.

Countries like Qatar and Oman have also announced their own national AI strategies and investment plans. Leveraging advantages in energy, land, and capital, these nations are striving to transform from traditional hydrocarbon centers into future hubs for computing power and innovation through building data centers and investing in startups.