The Middle East is attracting more attention from global tech investors than ever before. Saudi Arabia, the United Arab Emirates and Qatar have launched billions of dollars in transactions, working with top US companies to build the infrastructure needed to run large-scale AI systems.
It’s not just money. There are new laws, startup activities, and plans for growth in Silicon Valley and beyond.
Strategic deals lock down US technology relations
US President Donald Trump recently visited the area and announced an investment deal worth more than $2 trillion. These included major partnerships between the Gulf countries and American companies in artificial intelligence, cloud services and defense technology.
The UAE said it will build one of the world’s largest AI campuses in Abu Dhabi. At the same time, Saudi Arabia launched an AI company called Humain. The company, backed by public investment funds, has set up a deal with NVIDIA and AMD, bringing in thousands of chips for local use. The idea is to operate and train AI models within the Kingdom and reduce the need to rely on overseas services.
These transactions are not one-off events. They point to a deeper relationship between Gulf companies and high-tech US companies. Gulf leaders want to localize AI development, but US companies see the region as a growing market for cloud, data and chips. This growing alignment offers advantages on both sides of a global race where speed and access are important.
Gulf state expands its AI infrastructure
AI systems require strong computing power. This means data centers, chips and networks that can handle certain heavy demands. Countries like Saudi Arabia and the United Arab Emirates spend money behind this need.
Saudi Arabian human beings are planning to deploy more than 18,000 Nvidia chips. This is some of the most advanced in the market. These power training clusters that allow researchers and businesses to build new models from home. The UAE is expanding its local data capacity through partnerships with Amazon and Openai. One campus in Abu Dhabi includes a large AI lab and a supercomputer.
Running powerful AI models near your home offers more than speed. Helps in data control, reduces costs and reduces latency. Governments in the region recognize that long-term management of AI infrastructure will play a major role in future national development and influence.
These projects are part of the national technology strategies of each country. The Saudi Arabia Vision 2030 includes technology within its core field. The UAE’s AI strategy aims to become one of the top AI-Ready countries in the next five years.
Startups are gaining momentum
Investment doesn’t just flow into large infrastructure. In April 2025, MENA startup raised $228.4 million. That’s more than twice what they grew in March. FinTech and B2B platforms lead the price.
Cairo-based investment platform THNDR has raised $15.7 million to expand to Saudi Arabia and the UAE. These countries are expanding their bases for retail investors and are looking for tools that will make trading and saving more accessible.
The young, tech-savvy population and high mobile use of the Gulf make it an ideal testbed for startups. At the same time, government-supported funds are investing in early stage businesses to help expand local talent and reduce their reliance on import services.
The government is also creating a more startup-friendly zone. The free economic zone of the United Arab Emirates and Saudi Arabia’s planned innovation hub offer tax benefits and simplified licenses for technology ventures. Investors say regulatory support is improving and founders now have a clearer path to launching and scaling.
Cloud and data center expansion collects pace
Demand for cloud services is growing in the Middle East. Smart City Projects, e-government platforms, and AI applications promote 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 local data hubs. These centres will support everything from banks to logistics.
Building cloud services is key to keeping your data local and speeding up your online services. It also reduces costs for local businesses, and does not have to rely on foreign servers. The result is a growing high-tech sector with tools to serve customers in real-time.
Large-scale data manipulation opens the doors of more local SaaS companies. Cloud capacity allows local developers to create enterprise tools, AI services, and e-commerce platforms tailored to their local needs.
Policy reform promotes diversification
Behind these technology movements are policy changes. The government is reducing deficits, relaxing foreign ownership rules, and providing tax cuts to high-tech investors. The aim is to reduce the local oil dependence and build a broader economic foundation.
Saudi Arabia’s Vision 2030 includes goals for digital infrastructure, education and innovation. The UAE’s AI strategy is linked to driving it to attract top researchers and engineers. These aren’t just paper plans. They are consistent with funding, law and global partnerships.
Cultural changes are also ongoing. Technology is taught in schools, and the university has launched programs focused on AI. This will help build a future workforce that can support local businesses and attract international businesses.
More investors are focusing on the predictability and speed of doing business. This is especially important for high-tech startups that need fast feedback and steady support for growth. If the rules are clear and approvals are quick, the company is more likely to stay.
Balance of growth and geopolitical interest
More tech investments are attracting more attention. The US sees the region as a way to increase the global technological influence, particularly as relations with China remain tense. For Middle Eastern countries, working with US companies provides know-how and supply chain access that takes years from scratch.
At the same time, there are concerns about who controls the technology, whether the data is stored, and how it will be used. Some countries are promoting data rules that support local storage. Others want to develop their own large-scale language models and retain training data within national borders.
Some local leaders are beginning to talk more openly about digital independence. Yes, they don’t just want to be buyers, they’re builders. That means investing in chips, software and talent that can support homegrown technology. A few years ago, it seemed far away. Now, with the right backing, it’s beginning to appear within reach.
Navigating these issues will form the next stage of technological growth in the Middle East. The government not only wants to move quickly, but also wants to maintain control over key parts of the digital economy.
The Middle East’s role in global technology is changing. It’s no longer just a market for new gadgets and services. It is becoming a center for infrastructure, AI training, startup growth and cloud services. Countries in this region are investing with clear goals. It’s building long-term strength in the sectors that shape the way business, education, and even government work over the years.
If the current trend continues, the Middle East will not only receive technology. It helps to shape it.
(Photo by photo)
See: Saudi Arabia moves to build the future of AI with Human and Nvidia
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