Oman, Kuwait and Saudi Arabia: the Gulf is accelerating its technological revolution
- Caroline Haïat
- 2 minutes ago
- 3 min read
Long associated with oil and gas, the Gulf monarchies now aspire to become major players in the global innovation economy. While the United Arab Emirates and Qatar have been leading the way for several years, Oman, Kuwait and Saudi Arabia are now stepping up investments in advanced technologies, artificial intelligence, startups and digital infrastructure. This profound transformation is gradually reshaping the region’s economic balance.
Saudi Arabia Seeks to Become a Global Innovation Powerhouse
Driven by its Vision 2030 strategy, Saudi Arabia is pursuing an ambitious plan to reduce its dependence on hydrocarbons by building a knowledge- and technology-based economy. The kingdom is investing hundreds of billions of dollars in projects designed to attract international companies and talent. Among them is NEOM, a futuristic megaproject with an estimated value of more than $500 billion, envisioned as a large-scale laboratory for smart cities. Artificial intelligence, robotics, autonomous mobility, renewable energy and biotechnology are expected to coexist within a fully connected environment.
At the same time, Riyadh is seeking to establish itself as a regional hub for artificial intelligence. Several major international companies, particularly from the United States and Europe, have announced the creation of regional centers or strategic partnerships with the kingdom in recent years. The startup ecosystem is also expanding rapidly. Saudi startups now benefit from public investment funds, incubators, accelerators and improved access to financing, across sectors ranging from fintech to digital healthcare.
Oman Bets on More Sustainable Innovation
Less prominent than its neighbors, Oman is pursuing a more gradual strategy. The sultanate is seeking to build a diversified economy based on green technologies, logistics, cybersecurity and digital services.
Through Oman Vision 2040, the government is encouraging the creation of innovative businesses while modernizing public administration through the digitalization of government services.
The country also benefits from a strategic geographic position at the entrance to the Strait of Hormuz, supporting the development of smart logistics platforms and digital solutions for international trade.
Omani authorities are also investing in training young graduates to meet the growing needs of technology companies.
Kuwait Accelerates Its Digital Transformation
Long considered more cautious than its neighbors when it comes to economic diversification, Kuwait is now stepping up efforts to modernize its economy. The government is developing several digital transformation programs aimed at improving public services, strengthening cybersecurity and encouraging private investment in new technologies.
Fintech, e-commerce and digital services are among the most dynamic sectors. Several incubators and accelerators now support young entrepreneurs, while authorities are seeking to attract more foreign investors. This transition nevertheless faces several challenges, including significant bureaucracy and a slower pace of reform than in the UAE or Saudi Arabia.
The race for innovation now goes beyond simple economic diversification. Each state is seeking to become a regional hub capable of attracting international headquarters, investors and top talent. The United Arab Emirates maintains a lead thanks to its business-friendly environment, world-class infrastructure and attractive regulatory framework. Saudi Arabia, meanwhile, is leveraging the size of its market, massive investments and the scale of its ambitions to compete directly with Dubai and Abu Dhabi. Oman is pursuing more measured growth focused on sustainability and technologies linked to the energy transition, while Kuwait is gradually working to modernize its economic environment.
Artificial Intelligence: The New Engine of Growth
Artificial intelligence has become the main arena of competition among the Gulf states. Governments are investing in data centers, cloud infrastructure, scientific research and specialist training. Partnerships with leading global technology companies aim to develop applications in healthcare, finance, transportation, energy and public services.
Beyond AI, cybersecurity, climate technologies, biotechnology and semiconductors are also emerging as strategic sectors expected to shape Gulf economies over the next decade.
This technological acceleration reflects a profound transformation across the Gulf. Long dependent on oil revenues, the monarchies are now investing in the industries expected to drive the global economy of tomorrow.
The competition is no longer limited to infrastructure or real estate. It is increasingly about the ability to attract researchers, entrepreneurs, investment funds and international technology companies.
Caroline Haïat
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