Gulf’s AI Ambitions Soar: GCC Eyes $250B Boom by 2033

The Gulf’s appetite for artificial intelligence has been growing for years, but every now and then a new forecast lands that really shows the scale of what’s coming. During a recent panel in Dubai, Dr Mohammed Abdulzaher, who heads the Artificial Intelligence Journalism for Research and Forecasting (AIJRF), pointed out that AI activity across the GCC could balloon to around $250 billion within the next decade. I reckon that figure alone says a lot about how seriously the region is taking its tech ambitions.

The discussion took place at an Avasant gathering at the Burj Al Arab, where senior executives and policymakers chewed over how AI and digital workforces are reshaping global priorities. Kevin S. Parikh, Avasant’s Global CEO and Chairman, led the session and noted that the UAE has become one of the world’s most attractive destinations for skilled professionals. Honestly, coming from the MENA startup world myself, I’ve seen the pull of the UAE first-hand—it’s not just hype.

Dr Abdulzaher stressed that Saudi Arabia and the UAE now account for more than 60% of all AI investment in the Gulf. That said, it’s not just about money on the table. Both countries are racing ahead with smart infrastructure, sovereign strategies and partnerships with the world’s biggest tech players. And believe it or not, the UAE’s plan announced in May to build a 5‑gigawatt Emirati–American AI complex is the kind of move that shows they’re not here to play small.

On the flip side, Saudi Arabia has been charging ahead too. The Kingdom is targeting more than $140 billion in AI and data investments over the next ten years, teaming up with heavyweights like BlackRock, Nvidia, Amazon and others. When I was chatting with founders at an event in Riyadh earlier this year—well… I mean, informal chats over coffee—they kept saying the same thing: “Everything is moving fast, almost too fast to keep up.” Spot on, really.

Global corporations have been strengthening their foothold as well. Microsoft recently revealed it will push its UAE investments above $15 billion by 2029 after securing U.S. licences to export Nvidia chips for use in its Emirati data centres. This expands on its $1.5 billion investment last year in G42, the Abu Dhabi AI firm that has become a symbol of the region’s tech confidence. It’s the kind of momentum that leaves companies “chuffed to bits,” as a British friend of mine would say.

Back in Dubai, Avasant’s discussions circled around familiar but crucial pillars: the pace of national digital transformation, the Gulf’s rising voice in global tech, how AI-enabled operating models are reshaping competitiveness, and the growing demand for future-ready talent. For many of the startups we see at Arageek, these shifts aren’t abstract—they shape day‑to‑day survival.

The AIJRF itself, founded in 2018, has become a notable hub for research on AI, media and the wider digital transformation. It runs more than 20 international initiatives, from the Global AI Journalism Forum to AI training camps for students. The organisation has even produced a professional and ethical guide for AI-powered content creation—a bit of a faff to read cover-to-cover, but definately useful for anyone trying to navigate this space responsibly.

All in all, the Gulf’s AI momentum feels less like a trend and more like a long-term rewiring of the region’s economic identity. And for entrepreneurs watching from the sidelines—or diving straight in—the next decade could be the one that changes everything.

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