GCC Innovation Surge Driven By Strategic Investment

Doha: The Gulf Cooperation Council (GCC) region is emerging as a global hotspot for artificial intelligence innovation, fueled by robust infrastructure investments, strategic partnerships, and an influx of global talent.

At the Qatar Economic Forum 2025, regional AI leaders expressed optimism about the trajectory of AI development in the Middle East, citing a fertile ecosystem for startups and enterprise applications alike.

Speaking on a panel titled 'AI in Action: Practical Applications in the GCC,' Nour Al Hassan, Founder and CEO of Arabic AI & Tarjama, and Magda Davila, CEO for Middle East & APAC at Clarity AI, highlighted the rapid maturation of the region's AI landscape.

“Developments in AI across the GCC are exciting and full of opportunity,” Al Hassan said.“There's a lot of emphasis and investment happening in infrastructure, which allows companies like ours to benefit eventually.”

While governments across the region are heavily investing in foundational technologies like data centers and large language models, Al Hassan noted that the most immediate opportunities lie in enterprise partnerships.“Our direction is more to work with enterprises and consulting companies, not necessarily governments right now. Many of these initiatives are building their own AI systems, and we expect a second phase where they will partner with specialised companies like ours for integration and domain-specific applications,” she explained.

Al Hassan also pointed to a shift in perception among global talent.“Five years ago, it was nearly impossible to convince a Silicon Valley engineer to move to the region. Now, they are reaching out to us. That alone is a huge sign that things are changing,” she added.“It's a great market, very welcoming, with a lot of support-perfect conditions for innovation.”

Echoing that sentiment, Magda Davila, CEO for Middle East & APAC at Clarity AI, emphasised the GCC's unique advantage in terms of energy and infrastructure-two critical enablers for scalable AI.

“To run AI, you need a lot of energy and ideally, low-cost, low-carbon energy,” said Davila.“The GCC is in a privileged position. Add to that high quality of life and increasing talent inflows, and you have the foundation for something transformative.”

Davila underscored how AI can help the GCC“leapfrog” in areas like financial intelligence, ESG data, and sustainability metrics, enhancing investment decisions and resource allocation.“At Clarity AI, we use AI to scan over 250,000 articles daily across 200 countries, mapping insights back to markets we cover. That's something AI does well, but human analysts still play a key role in interpreting trends and forecasting. It's not about replacing jobs-it's about augmenting them,” she said.

Both panelists agreed that capacity building and education are critical to ensuring a smooth transition into the AI era. Davila highlighted the UAE's decision to implement AI education in schools as a promising step that other GCC countries may soon follow.“The region's young population is an advantage. If we invest in their digital skills early, we can stay ahead of global markets in AI adoption,” she noted.

Davila added,“The GCC is laying the groundwork now, and if current trends continue, this region will not just adopt AI, it will shape the way it's used globally.”

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