Surging Investment in AI Companies: Middle East Capital Emerges as a Key Player

Oil-rich countries like Saudi Arabia, the UAE, Kuwait, and Qatar are shifting their focus away from oil dependency by investing in artificial intelligence (AI) technology companies. According to data from the project proposal company, investments from these nations' sovereign wealth funds in AI enterprises have surged fivefold over the past year.

At the recent Global AI Summit held in Riyadh, Saudi Arabia, discussions highlighted the region’s growing commitment to AI. For instance, the UAE's newly established AI investment fund, MGX, recently participated in the refinancing of OpenAI, aiming for a valuation of $150 billion. Last week, MGX also joined forces with BlackRock and Microsoft to establish an AI infrastructure investment fund named “Global AI Investment Partners.” This initiative seeks to raise $100 billion to meet the burgeoning demand for data centers and energy facilities in the AI sector.

Jared Cohen, from Goldman Sachs’ Global Research division, emphasized that there is an intention among capital from countries like Saudi Arabia and the UAE to allocate part of this investment globally. Additionally, sources like the project proposal company and CNBC report that, besides significant investments from certain Middle Eastern nations, the French National Investment Bank has completed 161 AI and machine learning transactions in the past four years. Meanwhile, Singapore’s Temasek and government investment corporation have conducted 47 and 24 transactions, respectively.

This shift toward AI investment reflects a broader trend among oil-rich nations to diversify their economies and position themselves at the forefront of technological innovation.