Governments across the Gulf are investing billions of dollars in artificial intelligence infrastructure as countries across the Gulf Cooperation Council aim to emerge as global AI hubs. State backed players in Abu Dhabi have entered multiple technology partnerships. Saudi Arabia has launched a large-scale drive to build AI data centres across the Gulf region. Qatar is also investing heavily in AI cloud capacity. This supply side momentum highlights strong ambition across the Gulf, while raising questions about whether local organisations are keeping pace with real world AI adoption.
Survey data shows that AI usage across the Gulf is increasing rapidly. In 2023 around 62% of organisations in the Gulf said they had adopted AI in some form. By 2025 that figure rose to 84% according to the latest regional survey outlined in the sidebar “About the research”. This places the Gulf just 4 points behind the global average. However the figures mask uneven progress as many organisations across the Gulf remain limited to pilot projects rather than full deployment.
Some large organisations in the Gulf are advancing faster than others. Saudi Aramco has developed a gen AI model with 250 billion parameters using decades of operational data to analyse drilling plans, geology timelines and costs. In 2024 Qatar entered a 5 year partnership with a US firm to expand AI adoption across government services in the Gulf. Despite these examples only 31% of surveyed organisations said AI is scaled or fully deployed across their operations in the Gulf region.
Creating measurable value from AI remains a key challenge for the Gulf. Just 11% of respondents identified their organisations as value realizers meaning AI is deployed in at least 1 business function scaled across the enterprise and contributes at least 5% of earnings. Leadership support across the Gulf is strong with around 75% of executives backing AI expansion and most organisations expecting higher AI budgets. However success in the Gulf will depend on clear business led AI strategies, strong delivery capabilities and effective change management as organisations move from gen AI toward early trials of AI agents.
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