Quick Introduction: A New Era in Gulf AI Leadership

In the 2025 Global AI Competitiveness Index, both Saudi Arabia (ranked 19th globally) and the UAE (16th globally) cracked the top 20 nations for AI talent density, outpacing major economies such as Italy and Russia.

This milestone reflects aggressive national strategies—Saudi Arabia with 0.4% of global AI talent and the UAE with 0.7%. For investors and tech companies, the Gulf region is swiftly emerging as a center of gravity for AI innovation and human capital.

The Global AI Competitiveness Index 2025: What It Reveals

Compiled by the International Finance Forum and Deep Knowledge Group, the Global AI Competitiveness Index assesses countries based on AI talent density, research output, enterprise presence, and growth trajectories.

Saudi Arabia ranked 19th globally, holding 0.4% of global AI talent; the UAE ranked 16th, at 0.7%. These metrics signal a paradigm shift: the Gulf is no longer a speculative destination—it is a competitive alternative for AI talent and innovation.

Saudi Arabia’s Rise: Talent Metrics & National Strategy

Saudi’s AI surge is driven by:

• Ranking third globally in AI hiring vibrancy at 28.7%, trailing only India and Brazil.

• Leading worldwide in female participation in AI, achieving the highest women-to-men ratio in AI publications.

• Investments of USD 20 billion into institutions like KAUST and AI centers under Vision 2030, targeting creation of 200,000 high-tech jobs by 2030.

• Establishment of Humain, a PIF-backed AI infrastructure firm developing Arabic LLMs and cloud AI services.

UAE’s Strength: AI Enterprise Density & Innovation Focus

The UAE distinguishes itself through:

• Holding a spot in the top 10 globally for AI company density at ~49.5 enterprises per million inhabitants.

• A 168% increase in AI talent concentration since 2016, reflecting sustained talent acquisition.

• Award-winning institutions like MBZUAI, the world’s first AI-focused university offering undergraduate to PhD programs as of 2025.

• A $30 billion AI infrastructure fund (MGX), backed by Mubadala, BlackRock, and Microsoft.

Education & Institutions Driving AI Talent Growth

Saudi Arabia

• KAUST ranks among the top 150 universities globally for AI output—the highest in the MENA region.

• National training platforms like SAMAI and 10,000 Coders aim to upskill hundreds of thousands in AI and data science.

UAE

• Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) offers scholarships and world-class programs in AI and machine learning.

• Khalifa University and UAE University climb global rankings with enhanced focus on interdisciplinary AI curricula.

Government Policies, Programs & Big Budget Deals

• Saudi Arabia’s SDAIA leads the national AI strategy, ensuring fast-track approvals (within 30 days) for AI initiatives.

• The UAE pioneered AI governance structures with an AI Minister and established AI-friendly legislation under its AI Strategy 2031.

• Major deals during high-level visits have seen NVIDIA chips, data center partnerships, and $10B+ AI venture commitments via Humain and MGX funds.

Key Economic Sectors Open to AI Investment

High-growth sectors rich in AI opportunities:

• Smart Cities & Digital Governance (NEOM, Riyadh initiatives)

• Healthcare & Biotech (AI diagnostics, genomics, pharma)

• Energy & Utilities (predictive maintenance, efficiency optimization in Aramco)

• Education & EdTech platforms integrating AI literacy

• Finance & Retail AI-driven customer service and fintech innovation

PIF-backed projects invite global AI firms to co-invest and pilot.