Kuwait, Saudi Arabia, UAE, and Qatar Account for 43% of Artificial Intelligence Investments

China’s economic platform Kr36 reported that Kuwait has strengthened its presence in the Gulf’s artificial intelligence (AI) investment ecosystem by participating, through the Public Investment Authority (PIA), as a limited partner (LP) in regional funds and platforms specialized in the sector. This comes as Gulf capital increasingly flows into various segments of the AI value chain.

The platform added that Kuwait is participating as a limited partner in Brookfield’s AI fund, alongside its involvement in the AI Infrastructure Partners platform. This platform includes MGX, BlackRock, GIP, and Microsoft, and aims to raise $300 billion for investment in data centers and AI computing capabilities.

It noted that Gulf investments in AI are no longer limited to infrastructure and data centers, but have expanded to the establishment of specialized funds and investments in large model development companies, as well as AI applications and robotics. This forms an integrated investment ecosystem covering various stages of the industry.

According to an annual report by the sovereign wealth research firm Global SWF, global sovereign wealth funds invested approximately $660 billion in AI and digital infrastructure last year. Gulf funds, with Saudi Arabia, the UAE, Kuwait, and Qatar as their main constituents, accounted for around 43 percent of this total.

The platform added that Saudi Arabia is the primary driver behind the significant rise in Gulf AI investments, noting that Humain signed a strategic financing framework agreement worth up to $12 billion with the Saudi National Development Fund to expand AI and digital infrastructure in the Kingdom.

Humain also announced a $3 billion investment in xAI’s funding round and later disclosed cooperation agreements for projects exceeding $150 billion, covering various levels of the technology chain, from energy supply and data centers to models and hardware.

In the UAE, MGX continues to invest in the AI sector. According to the platform, MGX has become one of the few institutions globally holding stakes in prominent companies in this field, including OpenAI, Anthropic, and xAI.

Meanwhile, the platform stated that China has become a key destination for Middle Eastern capital seeking AI investment opportunities, pointing to Gulf investments in several Chinese companies specializing in large models, robotics, and AI infrastructure.

It clarified that Prosperity 7, a subsidiary of Saudi Aramco, led a funding round for Zhipu AI, a Chinese company specializing in large model development, in 2024, with an investment of 213 million yuan. The platform noted that the value of this investment has risen significantly based on the company’s market capitalization at the close of trading on September 17.

It added that Prosperity 7’s portfolio in China’s AI sector includes companies operating in vector databases, computing chips, AI-based pharmaceuticals, as well as robotics and embodied AI, covering, according to the platform, various links in the industrial chain.

It also highlighted Abu Dhabi Investment Authority’s participation in Minimax’s initial public offering with a cornerstone investment of 65 million yuan, alongside other Gulf investments in Chinese companies active in robotics and artificial intelligence.

The platform noted that the Gulf’s expansion into the AI sector is part of broader economic transformations, as regional countries seek to diversify their economies and reduce reliance on oil, positioning AI and digital technologies as key drivers of future growth.

In this context, it pointed out that the region possesses advantages that can support the development of large-scale data centers, particularly the availability of energy, vast land areas, and a geographic location connecting Asian, European, and African markets.

Could China become a potential partner in developing the Gulf’s AI ecosystem? The platform explained that the expansion of Gulf investments in AI simultaneously opens up multiple avenues for cooperation with China, especially in model development and localization, computing infrastructure supply chains, as well as AI and robotics applications.

The platform concluded that Gulf capital is increasingly shifting from traditional energy investments to the AI sector, while China could serve as a key partner in building the technical capabilities and infrastructure necessary to support this transformation.