Qatar establishes AI company as Gulf positions itself as tech hub in diversification push

Qai is a subsidiary of the Qatar Investment Authority

The Gulf is increasingly attracting tech giants, such as OpenAI and Microsoft, seeking to tap the six-country bloc's strategic investments and affordable energy to fuel their AI expansion. Getty Images.Show less

Qatar is setting up a company that will invest in, develop and manage artificial intelligence infrastructure in the country and abroad, as the Gulf positions itself as a global centre for advanced technology, amid efforts to diversify away from oil.

The national AI company, called Qai, will be a subsidiary of the Qatar Investment Authority, benefitting from its global investments and working closely with research institutions and policymakers, Qatar's government said on Monday.

The sovereign wealth fund, which has $524 billion in assets under management, invests in technology, media and communications among other sectors in its portfolio, according to its website.

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Qai will provide "secure and trusted" technologies across key sectors, the government communications office said, without specifying how much the authority is investing in the AI firm.

The new company will also provide "access to high-performance computing and a connected suite of tools to responsibly deploy scalable AI systems, driving ... business growth with confidence, clarity and control", it said.

The move comes after the UAE and Saudi Arabia have invested heavily in AI technologies and created national AI firms. The UAE has established national champion G42, backed by Mubadala Investment Company, while Saudi Arabia has set up Humain, an AI company backed by the Public Investment Fund.

The Gulf is increasingly attracting tech giants, such as OpenAI and Microsoft, seeking to tap the six-country bloc's strategic investments and affordable energy to fuel their AI expansion. In November, the US approved the sale of tens of thousands of advanced AI chips to G42 and Humain.

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Abdulla Al Misnad, chairman of Qai, said as AI reshapes industries around the world, "our mission is to ensure this transformation remains centred on people".

"Qai embodies our commitment to keeping people and communities at the heart of AI development," he said.

"By building the capabilities that empower governments, companies and innovators to adopt AI with confidence we aim to enhance Qatar’s competitiveness on the international stage.”

The World Bank has projected that Qatar's economy will grow by 2.8 per cent this year, adding that Gulf countries have made "remarkable progress" in upgrading digital infrastructure and are well-positioned to benefit from AI-driven productivity gains.

But Gulf countries should introduce "comprehensive" policies, to help maximise AI’s productivity gains, mitigate labour market disruption and ensure environmental sustainability, the Washington-based lender said last week.

This includes putting in place robust competition policies to prevent market monopolies by early AI adopters. and encouraging SMEs to adopt AI through incubators, shared data infrastructure and access to big data.

The World Bank also urged Gulf governments to develop strong safety nets for workers displaced by AI through reskilling programmes, income support and continued learning to enable labour mobility.

Governments should also invest in strong cyber security safeguards, Arabic language data quality and technical expertise, according to the report.

"GCC countries should also apply pricing reflecting the resource scarcity for energy and water where appropriate, to manage AI’s environmental footprint," the lender said.

Jihad Azour, Middle East and North Africa director at the International Monetary Fund, on Monday said sustained investment in artificial intelligence will be a “game changer” for the UAE and the broader Gulf economies as the region positions itself as a global technology hub.

There are three dimensions to AI readiness in the Gulf region – infrastructure, investment in technology and capital, and developing knowledge of advanced technology, he added.

“And here, [it] is very important to reform labour market regulations, attract innovators, develop curriculums in order for the region not only to be a platform for investment, but also [a] platform for innovation,” Mr Azour said.