As 2025 draws to a close, artificial intelligence in the Arab region - especially in the Gulf Cooperation Council countries - is no longer merely a trend, a technical curiosity, or a headline-grabbing topic at conferences. It is increasingly emerging as a structural driver of economic growth.

Data from the final quarter of 2025 indicates that the region has moved beyond the "experimental" phase and entered a stage of "institutional empowerment."

First: 2025.. Numbers indicating a "qualitative leap"

By December 2025, the Arab region reported remarkable figures that exceeded global averages. According to reports, including PwC surveys, AI adoption in some Middle Eastern workplaces reached 75%, surpassing the global average of 69%. This reflects a high level of both technical and psychological readiness among the region’s young workforce.

Moreover, investments are moving beyond mere commitments on paper. Qatar has made substantial investment pledges to position itself as a regional AI hub, while in Saudi Arabia, initiatives such as 'HUMAIN' have driven a major expansion of data centers.

Similarly, the UAE reinforced its leadership by launching MGX, a global investment arm focused on AI infrastructure, while expanding the "Falcon" model to strengthen digital sovereignty and cement its status as a hub of innovation. The emphasis has shifted from software to hardware. Strategic partnerships between major telecom companies, such as Ooredoo, and tech giants like NVIDIA, along with the increased import of advanced chips, underscore that 2025 was the year of "building digital factories" to power the algorithms of the future.

Second: The economic entitlement of 2026 - The year of "governance and productivity"

If 2025 was the year of building, then 2026 is shaping up to be the year of "regulation and reaping rewards." Economic forecasts, including those from Oxford Economics, predict robust growth for Gulf economies in 2026, driven primarily by non-oil sectors. To capitalize on this momentum, governments are focusing on three key priorities:

1- Transition from "national strategies" to "binding legislation"

In 2026, the region will need to move from "ethical guidelines" to enforceable laws. With global regulations, such as European legislation, coming into effect, regional countries will be tasked with developing regulatory frameworks that safeguard "digital sovereignty" and define the responsibilities of "explainable AI," particularly in sensitive sectors.

2- The labor market dilemma: mandatory retraining

Data shows that a substantial share of current jobs could be automated by 2030. The most urgent priority in 2026 is not just creating new employment opportunities but also implementing large-scale, rapid "reskilling" programs to close the growing gap between educational outcomes and the rapid pace of AI and algorithmic development.

3- Compute sovereignty:

The geopolitical and economic challenge for 2026 will be securing the supply chains for chips and the energy needed to operate massive data centers. AI is highly energy-intensive, and the Gulf states’ competitive edge will depend on their ability to provide clean, sustainable energy to power these digital infrastructures.

In short, the Arab region stands at a pivotal moment. By the end of 2025, it possessed both the "fuel" (data and capital) and the "engine" (digital infrastructure). The challenge in 2026 will be "driving the vehicle" - crafting policies that ensure this technological growth translates into sustainable economic diversification.