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Improving Arab countries’ position in the AI race requires moving beyond the consumption of ready-made technologies and services toward localizing knowledge—by building infrastructure and data centers, and investing in energy, skills, research, and local companies. Saudi Arabia stands out in this effort: its data-center capacity rose from about 68 megawatts in 2021 to more than 440 megawatts in 2025. The UAE, meanwhile, is developing homegrown models and platforms, while Egypt and Morocco focus more on applications, research, and talent. Estimates suggest that AI-related investment will exceed $1 trillion in 2026, and that around $7 trillion will be needed for infrastructure and data centers through 2030. The article concludes that the region’s resources—capital, energy, and markets—will not be enough on their own. The decisive test is whether investment can be turned into local capabilities, companies, and products; otherwise, the region will remain dependent on external providers.
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