Doha: 07 January 2025

The Gulf Cooperation Council (GCC) countries are accelerating their shift into advanced technology sectors, with sovereign wealth funds committing billions of dollars to artificial intelligence and other emerging technologies. This was a central theme discussed by Robert Mogielnicki, Senior Resident Scholar at the Arab Gulf States Institute in Washington (AGSIW), during the latest Al-Attiyah Foundation podcast.

“The pace of change is unprecedented,” Mogielnicki told host Mhairi Beveridge. “A few years ago, the focus was on digitising government services and increasing non-cash transactions. Today, there’s a much greater emphasis on advanced technologies, reshaping the economic landscape of the region.”

Mogielnicki, who created the Next-Gen Gulf research series for AGSIW, highlighted the role of sovereign wealth funds in driving this transformation. Investments in cutting-edge technologies are not just about diversifying the economy but also about securing a competitive edge in a rapidly digitising world, he said.

In 2024, Qatar unveiled its Digital Agenda 2030, marking a significant stride forward in the country’s digital transformation journey. The agenda states that Qatar aims to create 26,000 jobs in the ICT sector by 2030 and rank among the top 10 nations on the Digital Competitiveness Index. To achieve this, the country has committed $2.5 billion in incentives to drive advancements in AI, technology and innovation, solidifying its position as a leader in the digital economy.

In the GCC region as a whole, the AI market is projected to grow at a compound annual growth rate (CAGR) of 28.63% between 2024 and 2030, reaching a market volume of $15.40 billion by 2030, according to statista.com.

The conversation also touched on Gulf-China relations with Mogielnicki emphasising that while energy trade remains the bedrock of Gulf-China relations, Beijing’s role has expanded into non-energy economic domains. “China is increasing its influence in the region, becoming a more significant player in shaping Gulf developments,” he explained.

Between 2017 and 2022, trade between China and Middle Eastern countries nearly doubled, rising from $262.5 billion to $507.2 billion.  In 2021, Chinese investment in the region surged by approximately 360%, with construction activities increasing by 116% compared to 2020.  By 2022, China's foreign direct investment stock in the Middle East reached $31.5 billion, marking a 12% increase from the previous year.

Economic diversification efforts in the Middle East were another key theme of the podcast. While major projects are underway, Mogielnicki emphasised the challenges of transforming resource-based economies. “Economic diversification is not a quick process—it requires sustained effort, strategic investments, and the ability to adapt to shifting global trends,” he explained.

The International Monetary Fund (IMF) reports that Qatar's public investment programs have been instrumental in driving economic diversification over the past decade, contributing an average of 5–6 percentage points annually to non-hydrocarbon real GDP growth.

For more insights from Robert Mogielnicki and to listen to the full podcast, visit the Al-Attiyah Foundation’s website or its YouTube channel.