Hydrocarbon economies to become knowledge-driven powerhouses using AI, says John Hanafin

For Gulf nations, AI isn’t just another technological wave, it’s a pillar of national transformation. From Saudi Arabia’s Vision 2030 to the UAE’s Centennial 2071, governments see AI as the catalyst for diversification, competitiveness and long-term resilience. The logic is simple: economies built on hydrocarbons must evolve into knowledge-driven powerhouses. AI bridges that transition by enabling smarter governance, efficient industries, and entirely new economic sectors.
The ambition is bold but deliberate, position the GCC among the world’s leading hubs for AI adoption, regulation and innovation.
The commitment across the GCC reflects a shared understanding that AI is essential for the next phase of economic evolution. For countries such as Saudi Arabia and the UAE, national visions like Vision 2030 and Centennial 2071 place technology at the heart of development. AI supports the shift from hydrocarbon-driven economies to knowledge-based ones by enabling smarter government services, more productive industries, new jobs and high-value sectors that align with global trends. This is not seen as a passing trend but as the foundation for long-term resilience.
Recent global attention, including OpenAI CEO Sam Altman’s high-profile visit to the UAE, has highlighted the Gulf’s growing influence. Altman’s meeting with President Sheikh Mohamed bin Zayed Al Nahyan and his honorary doctorate from MBZUAI reinforced international confidence in the UAE’s AI leadership. His presence symbolised a wider acknowledgement: the Gulf has become an essential hub for AI research, innovation and strategic collaboration, attracting major global players eager to engage with the region’s forward-thinking ecosystem.
The region’s progress stems from a powerful combination of talent development, regulatory openness and large-scale investment. GCC nations are drawing global AI experts while also nurturing local talent through universities, scholarships and applied training programmes. Regulations are being designed to accelerate innovation, with sandboxes and flexible policies allowing companies to test and deploy AI solutions in real environments. At the same time, governments continue to invest heavily in digital infrastructure, data centres, research institutions and sovereign-backed funds that give startups and enterprises the resources they need to grow. Together, these elements create one of the world’s most agile and well-supported environments for AI development.
Each country is building its own distinct strengths. Saudi Arabia is embedding AI across healthcare, education, mobility and energy through SDAIA, supported by major investments in data capabilities and emerging semiconductor infrastructure. The UAE is positioning itself as a long-term global centre for AI through platforms like Hub71 and major funding commitments such as the MGX Fund, which signal deep and sustained government engagement. Qatar is advancing research through the Qatar Computing Research Institute and focusing on Arabic-language AI to serve a wider regional audience. Bahrain is establishing itself as one of the region’s most startup-friendly environments by introducing an innovation-oriented regulatory sandbox and new AI legislation. Oman, through its National AI Programme, is strengthening digital infrastructure and promoting SME participation to build a more inclusive innovation ecosystem.
For founders, the region offers an environment where national priorities and commercial opportunity align. AI startups that address regional needs, whether in logistics efficiency, Arabic-language tools, healthtech, fintech or climate resilience are finding an exceptionally supportive landscape. Access to capital, regulatory clarity and collaboration with government entities give entrepreneurs the conditions needed to scale quickly and effectively. Few regions match the Gulf’s ability to turn innovative ideas into market-ready solutions at such speed.
The GCC is now entering a transformative phase in which AI will not only enhance existing sectors but create entirely new ones. With visionary leadership, progressive policy frameworks and substantial long-term investment, the region is positioning itself as one of the world’s key centres for AI advancement. For innovators and investors, the Gulf represents more than a promising market; it offers a front-row seat to a future being shaped in real time.
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