Gulf Nations Fast-Track AI Ambitions, UAE Leads Regional Readiness, says BCG report
The BCG study reveals that 47% of GCC organizations are actively deploying AI to drive business value.
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When the UAE appointed the world’s first Minister of Artificial Intelligence in 2017, many saw it as a symbolic gesture—a bold headline in a region known for its grand ambitions. Today, that appointment reads less like symbolism and more like strategy.
Fast forward to 2025, and the Gulf is no longer asking if AI will reshape economies—it’s actively building the systems, infrastructure, and policies to ensure it does. According to a new Boston Consulting Group report titled The GCC AI Pulse: Mapping the Region’s Readiness for an AI-Driven Future, countries across the Gulf Cooperation Council (GCC) are accelerating their readiness for artificial intelligence, balancing ambition with pragmatism, and increasingly moving from pilot programs to enterprise-wide integration.
The findings, based on BCG’s 2024 AI Maturity Matrix, were spotlighted during the Dubai AI Assembly, part of the broader Dubai AI Week—an event underscoring the region’s ambitions to be a global AI hub.
AI as National Imperative
Each GCC country has declared AI a national priority. The UAE’s National AI Strategy 2031 outlines a vision of becoming a global AI leader, with efforts embedded across healthcare, education, mobility, and government services. Saudi Arabia, meanwhile, established the Saudi Data and AI Authority (SDAIA), with a goal of ranking among the world’s top 15 AI nations by 2030.
Qatar, Bahrain, Oman, and Kuwait are equally aligning AI strategies with broader transformation agendas like Qatar National Vision 2030 and Oman Vision 2040.
According to the report, UAE leads with 35 data centers and the region’s highest public cloud spend per employee (USD 228). Saudi Arabia has seen 72% of its companies adopt a strategy to deploy emerging AI technologies, backed by cloud and high-performance computing (HPC) infrastructure. Oman and Kuwait are also expanding digital infrastructure through partnerships with Microsoft and Google Cloud.
Dr. Lars Littig, Managing Director and Partner at BCG, noted a broader regional shift: “The UAE stands out as a beacon of advanced leadership and execution in AI — but what makes this moment remarkable is the broader wave of transformation across the GCC.”
“The UAE is poised to be a regional leader amongst other global AI Pioneers by capitalizing on its established digital infrastructure and formulating strategic initiatives that support AI integration into its economic visions,” added Dr. Akram Awad, Managing Director and Partner at BCG. “Key indicators collectively illustrate a forward-thinking approach to AI by the UAE and outline clear pathways for improvement. As entities forge ahead, these insights are key in the drive towards AI maturation.”
Rami Mourtada, Partner and Director at BCG, emphasized the importance of continued investment and innovation: “Our research findings reveal that advancing private sector engagement and investment, improving R&D outcomes to global innovation levels, and expanding the homegrown AI talent pool, will further solidify the UAE’s position as a global AI leader. These imperatives will accelerate the UAE’s journey towards a clear status as an AI Pioneer, multiplying economic and social benefits at the national level.”
Where AI Meets Business: Adoption Beyond the Hype
The BCG study reveals that 47% of GCC organizations are actively deploying AI to drive business value. Sectors such as finance, energy, telecom, and government are leading adoption—using AI to optimize operations, enhance citizen experiences, and personalize services.
“We’re witnessing a region-wide momentum that, if harnessed collectively, has the potential to position the GCC as one of the most future-ready clusters for AI innovation globally,” Mourtada said.
Importantly, one in four GCC companies plans to invest over $25 million in AI in 2025 alone. And over 70% of executives surveyed now rank AI and generative AI as top three strategic priorities.
This marks a critical inflection point. “We’re moving from proof of concept to proof of value,” says Hoteit. “The mindset is shifting from experimentation to scale.”
The region is also embracing the “10-20-70” framework for AI transformation—where only 10% of success is attributed to algorithms, 20% to tech and data, and 70% to people, processes, and organizational design. It’s a signal that Gulf leaders understand: AI transformation is less about tools, and more about change management.
Talent: The Missing Link
Despite top-down support, one of the region’s biggest bottlenecks remains talent. The UAE has around 7,000 AI specialists. Saudi Arabia has approximately 5,000. For comparison, Germany—hardly the world’s largest AI hub—has more than 40,000.
Efforts to bridge the gap are underway. Qatar is scaling its upskilling programs; Oman launched “Makeen,” an initiative to build AI competencies across sectors. But experts say talent strategies must move beyond coding bootcamps to long-term capability building across academia, research, and enterprise.
Key Takeaways
The GCC’s competitive edge stems from its bold national visions, robust digital infrastructure, and the emergence of foundational AI ecosystems—most notably in Saudi Arabia and the UAE. However, unlocking long-term leadership will require a deliberate shift from early-stage deployment to sustained innovation and capability building.
To accelerate their trajectory toward global AI leadership, governments across the region should consider the following strategic imperatives:
- Foster regional cooperation to pool resources, share digital infrastructure, and create cross-border innovation hubs that drive collective progress.
- Catalyze AI investment by establishing dedicated funding vehicles and nurturing a vibrant venture capital ecosystem tailored to deep-tech and AI ventures.
- Develop a future-ready talent pipeline through comprehensive education reform, national reskilling programs, and policies that attract and retain global AI talent.
As the world looks for scalable AI success stories beyond Silicon Valley and Shenzhen, the Gulf could very well be next.
