OpenAI CEO Sam Altman concluded another visit to the UAE last month, highlighting the country’s deepening ties with the technology giant. Altman met with President Sheikh Mohamed bin Zayed Al Nahyan in Abu Dhabi to discuss increasing collaboration in AI research and its practical applications. As part of the trip, Altman received an honorary doctorate from the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI).
This visit demonstrates the high level of international confidence in the AI strategy of the UAE and the wider GCC. The UAE was world-leading when, in 2017, it appointed a Minister of State for Artificial Intelligence, and the Altman visit is just the next stage in this story. Today, the UAE and Saudi Arabia host some of the world’s largest AI summits, as well as several initiatives that are attracting entrepreneurs with AI-focused startups.
So, this article explores how GCC governments have prepared for AI and what this means for entrepreneurs seeking opportunities in the region.
Areas of focus: talent, regulation and investment
Gulf countries have worked hard to create a climate that attracts the best talent from around the world – while also cultivating local expertise. This tandem approach is crucial and dovetails with the region’s AI strategy. To that end, GCC governments are creating new visa categories and updating workforce policies to streamline the process of bringing AI specialists into the region. Consequently, it’s now easier than ever for AI-startup founders to live and work in the region. In addition, educational institutions (such as the aforementioned MBZUAI), scholarships and training programmes help cultivate a pipeline of highly skilled local professionals.
New regulations are also a significant factor, with specialised AI regulatory pathways allowing startups to test products in live environments with fewer restrictions. This reduction in bureaucratic ‘friction’ enables companies to test advanced technologies, particularly in highlighted sectors such as healthcare, transport and smart cities.
For all of this to be effective, the strategy needs to be underpinned by investment in AI infrastructure. That includes building AI campuses and data-processing facilities to ensure startups have the resources they need to train and scale their AI solutions.
How are GCC governments preparing the ground?
Several countries, particularly the UAE and Saudi Arabia, have been ahead of the game in embedding AI into government services and creating a landscape where AI-focused startups can flourish.
- Saudi Arabia: Saudi Arabia’s determination to become a world-leading AI centre is outlined in its Data and Artificial Intelligence Authority (SDAIA), which positions the country’s AI strategy within the wider Vision 2030. The plan identifies sectors of focus, including education, healthcare, energy and mobility, with the aim of ensuring that AI is truly embedded in public and private activities. As part of this approach, the government is investing in data centres and semiconductor hubs and forming partnerships with tech firms worldwide. This gives startups and investors access to the necessary computing capacity and a clear policy direction – in other words, fertile ground for regional AI innovation.
- UAE: Much like Saudi Arabia, the UAE positions its AI strategy within its longer-term vision – in this case, the Centennial 2071. Its goal is to position AI as a cornerstone of national progress, a means for the country to get ahead, and a driver of improved government performance. Initiatives like Abu Dhabi’s Hub71 form part of a comprehensive ecosystem for global startups, offering incentives and access to funding. The UAE has also launched the MGX Fund, an AI-focused investment firm with potential assets exceeding USD 100 billion. All told, the UAE is sending a strong signal that its commitment to AI is long-term.
- Qatar: Qatar’s national AI strategy aligns with its broader National Vision 2030 and focuses on a range of areas, including the development of Arabic-language AI models and research partnerships. The country’s goals are achieved through institutions like the Qatar Computing Research Institute. For global entrepreneurs interested in Arabic-language AI, Qatar offers the opportunity to tap into strong infrastructure and investor networks.
- Bahrain: Bahrain supports AI startups through its regulatory sandbox and fintech-friendly policies. The goal is to reduce regulatory burden and accelerate time-to-market for AI products. In April 2024, the country enacted a comprehensive AI law to establish clear governance and licensing requirements for those working in AI to help lower compliance risk for companies operating in the region.
- Oman: Oman’s National Programme for AI and Advanced Digital Technologies promotes AI adoption across key sectors while providing funding and digital infrastructure support for tech startups and SMEs. This initiative creates a new market for entrepreneurs wanting to establish a regional footprint within Oman’s AI ecosystem.
Opportunities for entrepreneurs
The Gulf is an exciting place for entrepreneurs. But for founders and innovators, it’s important to align your ideas with the Gulf’s AI ambitions – this puts your business on the fast track and makes it easier to translate ideas into actual commercial opportunities. Startups should develop AI solutions that are tailored to the challenges the region faces but can also be scaled and applied to the wider world. Whether it’s Arabic-language products, innovations in logistics or new AI-powered healthtech, taking advantage of national priorities is key.
Entrepreneurs can also use the regulatory sandboxes and incentive programmes offered by the Gulf. National sandboxes in the UAE, Saudi Arabia, Qatar and other GCC states allow companies to experiment with live data and users in a controlled environment. Success in these programmes can serve as proof of concept and ultimately help secure funding while also opening up new markets.
Aligning with national AI strategies is crucial for startups, as it unlocks both capital and customers. Partnering with state-backed funds or institutions, specifically, provides access to financing and large-scale procurement opportunities. Founders should think of government support as a strategic asset, one that helps you validate and, later, commercialise your solutions. As the Gulf creates sustainable ecosystems, entrepreneurs can position themselves at the heart of them.
The bigger picture
The swift construction of AI infrastructure by Gulf governments signals a major economic shift. This proactive approach creates a compelling value proposition for global entrepreneurs and investors: a supportive environment in which to build, test and scale. As the region aims to be the next global centre of AI innovation, it offers participants the chance to be at the heart of this transformation.
