The Middle East’s Growing Influence in Global Tech
The Middle East is pulling in more attention from global tech investors than ever. Saudi Arabia, the UAE, and Qatar are rolling out billions of dollars in deals, working with top US companies, and building the kind of infrastructure needed to run large-scale AI systems.
Strategic Deals Anchor US Tech Ties
US President Donald Trump recently visited the region and announced more than $2 trillion in investment agreements. These included major partnerships between Gulf states and American firms in artificial intelligence, cloud services, and defence tech. The UAE said it would build one of the world’s largest AI campuses in Abu Dhabi. At the same time, Saudi Arabia launched an AI company called Humain. Backed by the Public Investment Fund, the firm has already formed deals with Nvidia and AMD to bring in thousands of chips for local use.
These deals aren’t one-off events. They point to deeper ties between the Gulf and US tech companies. Gulf leaders want to localise AI development, but US companies see the region as a growing market for cloud, data, and chips. This growing alignment offers both sides an edge in a global race where speed and access matter.
Gulf States Scale Up AI Infrastructure
AI systems need strong computing power. That means data centres, chips, and networks that can handle constant, heavy demand. Countries like Saudi Arabia and the UAE are putting their money behind this need. Saudi Arabia’s Humain is planning to deploy over 18,000 Nvidia chips, some of the most advanced in the market. These will power training clusters that let researchers and firms build new models at home.
The UAE, through partnerships with Amazon and OpenAI, is also expanding its local data capacity. One campus in Abu Dhabi will include large-scale AI labs and supercomputers. Running powerful AI models close to home offers more than speed. It helps with data control, lowers costs, and reduces delays. Governments in the region are aware that long-term control over AI infrastructure will play a major role in future national development and influence.
Startups Are Finding Momentum
Investment isn’t only flowing to big infrastructure. April 2025 saw MENA startups raise $228.4 million. That’s more than double what they raised in March. Fintech and B2B platforms are leading the charge. Thndr, a Cairo-based investment platform, raised $15.7 million to expand into Saudi Arabia and the UAE. These countries have growing retail investor bases and are looking for tools that make trading and saving more accessible.
The Gulf’s young, tech-savvy population and high mobile use make it an ideal testbed for startups. At the same time, government-backed funds are investing in early-stage companies to help grow local talent and reduce dependence on imported services. Governments are also creating more startup-friendly zones. Free economic zones in the UAE and planned innovation hubs in Saudi Arabia offer tax benefits and simplified licensing for tech ventures.
Cloud and Data Centre Expansion Gathers Pace
Cloud service demand is rising across the Middle East. Smart city projects, e-government platforms, and AI applications are driving the need for secure, local data storage and processing. Oracle has pledged $14 billion to expand its cloud footprint in Saudi Arabia. Google, AWS, and Microsoft are also investing in regional data hubs. These centres will support everything from banking to logistics.
Building out cloud services is key to keeping data local and speeding up online services. It also lowers costs for local firms, which no longer need to rely on foreign servers. The result is a growing tech sector that has the tools to serve customers in real time. Large-scale data operations also open the door for more regional SaaS companies. With cloud capacity in place, local developers can create enterprise tools, AI services, and e-commerce platforms tailored to local needs.
Policy Reforms Drive Diversification
Behind these tech moves are changes in policy. Governments are cutting red tape, easing rules for foreign ownership, and offering tax breaks for tech investors. The aim is to reduce the region’s reliance on oil and build a broader economic base. Saudi Arabia’s Vision 2030 includes goals for digital infrastructure, education, and innovation. The UAE’s AI strategy is tied to its push to attract top researchers and engineers.
These are not just plans on paper. They’re being matched with funding, laws, and global partnerships. There is also a cultural shift underway. Tech is being taught in schools, and universities are opening AI-focused programs. This is helping to build a future workforce that can support local companies and attract international firms. More investors are noting the predictability and speed of doing business. This is especially important for tech startups that need fast feedback and steady support to grow.
Balancing Growth and Geopolitical Interests
With more tech investment comes more attention. The US sees the region as a way to grow its global tech influence, especially as ties with China remain tense. For Middle Eastern nations, working with US companies gives them access to know-how and supply chains that would take years to build from scratch. At the same time, there are concerns about who controls the tech, where data is stored, and how it’s used.
Some countries are pushing for data rules that favour local storage. Others want to develop their own large language models and keep training data inside national borders. Some regional leaders are starting to speak more openly about digital independence. They want to be buyers, yes, but also builders. That means investing in chips, software, and talent that can support homegrown tech.
Conclusion
The Middle East’s role in global tech is shifting. It’s no longer just a market for new gadgets or services. It’s becoming a centre for infrastructure, AI training, startup growth, and cloud services. Countries in the region are investing with a clear goal: to build long-term strength in a sector that shapes how business, education, and even government will work in the years ahead. If current trends continue, the Middle East won’t just be receiving tech. It will be helping shape it.
FAQs
- What is driving the growth of tech investment in the Middle East?
The growth of tech investment in the Middle East is driven by strategic deals between Gulf states and US companies, as well as the region’s growing demand for cloud services, AI, and data storage. - What are the key areas of focus for tech investment in the Middle East?
The key areas of focus for tech investment in the Middle East include AI, cloud services, data storage, and startup growth. - How are governments in the Middle East supporting the growth of tech?
Governments in the Middle East are supporting the growth of tech by cutting red tape, easing rules for foreign ownership, and offering tax breaks for tech investors. They are also investing in digital infrastructure, education, and innovation. - What are the potential risks and challenges associated with the growth of tech in the Middle East?
The potential risks and challenges associated with the growth of tech in the Middle East include concerns about data storage, cybersecurity, and the potential for geopolitical tensions to impact the region’s tech sector. - How is the growth of tech in the Middle East likely to impact the global tech industry?
The growth of tech in the Middle East is likely to have a significant impact on the global tech industry, as the region becomes a major player in the development and deployment of new technologies.
