The use of artificial intelligence is growing considerably in Gulf countries. Governments in the Gulf region are developing from general technology strategies towards tangible programs that include public services, infrastructure, investments, workforce development and productivity in the economy.
Saudi Arabia and the United Arab Emirates are the leading countries in the region for implementing AI strategies. The Kingdom has set several targets for AI investment, taking into account the development of specialists in the sphere and establishing AI startups, while the UAE initiated its national AI strategy in 2017 and set 2031 as the main year for implementing AI technologies in government work and data processing.
This transition is important because large-scale AI deployment requires more than software. It depends on computing infrastructure, data, skilled professionals, digital government platforms and policies that allow AI systems to operate securely and efficiently.
Gulf Governments Are Moving from Strategy to Measurable Targets
AI strategies in Gulf economies increasingly include specific numerical objectives. Saudi Arabia’s National Strategy for Data and AI sets targets covering national AI capability, investment, talent and entrepreneurship. The strategy aims to place Saudi Arabia among the top 15 countries in AI, develop more than 20,000 data and AI specialists and experts, attract approximately SAR 75 billion in data and AI investment, and establish more than 300 data and AI startups.
The United Arab Emirates has set certain targets in the field of AI. It launched its national AI strategy in October 2017, which aims to achieve a target of 100% reliance on AI by 2031 in government services and data processing. The strategy can be applied in fields like transport, health, space, renewable energy, water resources, technology, education, ecology, and traffic.
Besides, the larger programme on digital government of the UAE also introduces some quantitative targets. The digital government strategy includes a target that 90% of services available on a unified digital platform should be accomplished, 100% digitization of all services, and that 85% of the transactions should be completed digitally from the beginning until the end.
This proves the idea that the technology of AI is part of the overall digital government programs and is not being regarded as an independent initiative.
Digital Infrastructure Is Becoming Critical to AI Deployment
AI applications require substantial computing, storage and connectivity infrastructure. As governments expand digital services and adopt advanced analytics and AI systems, data centres become an important part of national digital infrastructure.
A clear example of this investment into the infrastructure can be seen in Saudi Arabia. In January 2026, the Saudi Press Agency announced the laying of the foundation stone for SDAIA’s Hexagon Data Center in the capital city, Riyadh. The facility will have a total capacity of 480 megawatts and will cover an area of over 30 million square feet. It has been classified as a Tier IV facility and is expected to meet the growing needs of government data centres and electronic services.
The scale of the project illustrates how AI and digital-government development are influencing infrastructure planning. A 480 MW government data centre represents significant computing capacity and provides infrastructure for increasingly data-intensive government applications.
The UAE is also linking AI development with physical digital infrastructure. Dubai’s Universal Blueprint for Artificial Intelligence includes land allocation for data centres as part of its programme to accelerate AI adoption.
Global AI Market Growth Adds Momentum
The growth of artificial intelligence worldwide is key for investments in the economy of Gulf nations. As presented in a study by DataIntelo, the global market of AI was worth $214.6 billion in 2025 and is predicted to reach the amount of $3,680.5 billion in 2034, which corresponds to 35.7% CAGR from 2026 to 2034.
The forecasted growth indicates the larger scale of development related to artificial intelligence. For Gulf nations, the situation provides a good reason to invest in the development of domestic production of AI technologies instead of depending just on imports.
Saudi Arabia’s national target of more than 300 data and AI startups reflects this ecosystem-oriented approach. The UAE’s strategy similarly seeks to strengthen AI investment, productivity and the development of a high-value technology environment.
The combination of national strategies and expanding global demand is therefore encouraging Gulf governments to invest simultaneously in infrastructure, skills, digital services and AI-focused businesses.
Government Priorities Are Expanding Across Multiple AI Applications
The UAE’s official AI strategy identifies 9 sectors for AI applications: transport, health, space, renewable energy, water, technology, education, environment and traffic. Its later AI adoption guidance identifies 5 priority sectors for AI transformation: resources and energy, logistics and transport, tourism and hospitality, healthcare, and cybersecurity.
Key priorities across the region include:
- Government services: The UAE targets 100% reliance on AI for government services and data analysis by 2031.
- AI talent: Saudi Arabia’s national strategy targets more than 20,000 data and AI specialists and experts.
- AI investment: Saudi Arabia aims to attract approximately SAR 75 billion in data and AI investment.
- Entrepreneurship: The Saudi strategy targets more than 300 data and AI startups.
- Infrastructure: Saudi Arabia’s Hexagon government data centre is planned with 480 MW of capacity.
- Economic productivity: Dubai’s AI blueprint targets an annual AED 100 billion contribution to the economy and a 50% increase in productivity through innovative digital solutions.
These figures demonstrate that AI policy in the Gulf is being built around several connected priorities rather than a single application area.
Generative AI Is Expanding the Role of Artificial Intelligence
Generative AI is extending the role of artificial intelligence beyond conventional automation and predictive analytics. Large language models and other generative systems can support information processing, digital customer services, content creation and government workflows.
As per the official rules regarding the introduction of AI throughout UAE, the intention of the country is to become one of the top players in this field by 2031. The document highlights the major importance of human resources as well as infrastructure, legislative regulations and establishment of rules in the process of AI implementation. What is more, it outlines the most important industries being involved in the transformation which include energy and resources, transport and logistics, tourism and hospitality, healthcare and cyber security.
In Saudi Arabia, the government is taking a mostly similar approach to AI development in the nation. There have been enormous efforts made in improving computing infrastructure that will help the country achieve ambitious goals in the development of specialists and startups.
The importance of infrastructure and skills is crucial to generative AI since sophisticated AI models need high-performance computing facilities and top-notch data. Thus, state policies that deal with these fundamentals can help promote their use in different areas including private sector.
AI Is Being Connected to Measurable Economic Outcomes
The economic dimension of AI is becoming increasingly visible in Gulf policy. Dubai’s Universal Blueprint for Artificial Intelligence seeks to contribute AED 100 billion annually to Dubai’s economy and increase productivity by 50% through innovative digital solutions. The programme also includes AI leadership positions across government entities, AI and Web3 incubators, educational initiatives, an AI commercial licence and land allocation for data centres.
Services 360 in Dubai is another example to view the benefits of digital transformation which is measurable. The policy states that 100% of services are to be proactive and automated, 90% of services must be fully integrated, and 90% has to be provided without the physical presence of the client. Also, the policy estimates savings per year of over AED 1 billion, erasing 9 million visits to the service centre annually, and saving over 300,000 hours per year.
The numbers show that government initiatives that rely on digital technologies and AI have become the subject of analysis.
Where AI Could Have the Greatest Government Impact
The combination of national AI strategies, infrastructure projects and digital-service programmes points toward several areas where AI can influence Gulf economies.
| Area | Government Direction | Numerical Indicator |
| AI investment | Saudi national AI ecosystem | ~SAR 75 billion target |
| AI talent | Development of specialists and experts | 20,000+ target |
| AI entrepreneurship | Data and AI startup development | 300+ startups |
| Government AI | UAE AI-enabled services and data analysis | 100% by 2031 |
| AI infrastructure | Saudi Hexagon Data Center | 480 MW |
| AI applications | UAE national AI strategy | 9 sectors |
| Dubai AI economy | AI contribution to Dubai economy | AED 100 billion annually |
| Productivity | Dubai AI blueprint | 50% increase |
| Digital services | Dubai Services 360 | AED 1B+ annual savings |
The figures indicate that Gulf governments are measuring AI development through different dimensions. Investment targets measure financial commitment, specialist targets measure workforce capacity, infrastructure projects measure computing readiness, while service and productivity targets focus on operational outcomes.
The Gulf AI Economy Is Moving Toward Implementation
The next stage of AI development in Gulf economies will depend on converting national strategies into operational systems. Saudi Arabia’s targets include more than 20,000 specialists, approximately SAR 75 billion in investment and more than 300 startups, while its infrastructure programme includes the 480 MW Hexagon government data centre.
The UAE has established 2031 as the target for 100% reliance on AI for government services and data analysis, while Dubai’s AI blueprint targets AED 100 billion in annual economic contribution and a 50% productivity increase.
The direction is therefore shifting from announcing AI strategies toward implementing them at scale. Infrastructure, talent, investment and digital government systems will determine how effectively Gulf economies can convert AI capabilities into measurable improvements in services and productivity.
For the Gulf region, the coming years are likely to be defined less by the announcement of new AI strategies and more by the implementation of existing targets. Large infrastructure projects, workforce programmes, startup objectives and measurable digital-service goals provide a foundation for artificial intelligence to become an increasingly important component of the region’s digital economy.
References
- UAE Government — UAE Strategy for Artificial Intelligence
- UAE Government — UAE Digital Government Strategy 2025
- UAE Government — Dubai Universal Blueprint for Artificial Intelligence
- UAE Government — Services 360 Policy
- UAE Government — UAE AI Adoption Guideline
- Saudi Press Agency — Hexagon Government Data Center
- DataIntelo — Artificial Intelligence Market Report