The United Arab Emirates (UAE) and Kingdom of Saudi Arabia leverage AI investments as a dual instrument of economic diversification and geopolitical influence. Against the backdrop of great power competition, there is increasing pressure on the UAE and Saudi Arabia to divest from Chinese technology companies in return for access to advanced semiconductors from the United States. The geopolitical and security environment of the Gulf, shaped partly by the Houthi insurgency in Yemen and the importance of its waterways for trade and energy security, has also spurred investment in AI integration in defense. The very qualities that make Gulf countries attractive as regulatory sandboxes to develop AI technologies and test governance frameworks also raise significant concerns regarding human rights and civil liberties, particularly in the areas of privacy and data protection.
The UAE and KSA’s AI Hedge in a Divided Global Order – The Soufan Center
