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Saudi Arabia, by transferring 500 billion dollars from the mega Noam project to artificial intelligence, has taken a major step in redefining its developmental strategy. This transformation is linked with the decline in oil prices and economic challenges in the region. Such a focus not only points to the development of AI technology and infrastructure, but also places fundamental importance on how artificial intelligence will be exploited in the future.
The sharp decrease in oil prices and the drop in traditional energy revenues have forced the Saudi government to diversify and strengthen its economy. With the relative slowdown of the Noam project, it seems that Saudi Arabia is implementing a new concept of development, based on soft power and modern technologies.
Saudi Arabia and the UAE, as leaders of AI technology in the Middle East, have managed to attract significant investment, talent, and infrastructure. The dominance of these two countries in AI can redefine the distribution of regional power in the medium and long term, as smart tools transform not only the economy, but also security, education, health, and urban management.
Success in artificial intelligence is not limited to infrastructure and technology; rather, planning for its strategic applications will be the true determinant of power. The massive investment is only the beginning; countries that succeed in creating an AI ecosystem, formulating digital governance policies, and growing related industries, will have a stronger influence on the region’s future developments.
According to analysts, the serious entry of Saudi Arabia and the UAE into the field of artificial intelligence lays the ground for fundamental changes in the regional power structure, especially as dependence on oil and the traditional economy decreases. In the medium and long term, AI can redefine the dynamics of regional power, provided that leading countries can pursue innovation, education, and smart policymaking in parallel with infrastructural developments move by Saudi Arabia marks a shift from a resource-based economy to a knowledge-based and digital economy, which can completely transform the region’s strategic equations.

In this regard, taking into consideration of US and China competition in AI techs in the region is vital to understand the possibility of new domination.

Hamid Zarei

2025-10-25