Gulf nations are accelerating efforts to build sovereign artificial intelligence capabilities as rising cyber threats push governments to treat AI as critical national infrastructure rather than simply a technological upgrade, according to a report by Gulf News.
Countries including the UAE and Saudi Arabia are increasingly prioritising long-term control over AI systems, data, and digital infrastructure as AI becomes deeply embedded in public services, transport, finance, energy, and government operations.
Cyber pressure
Shalev Hulio, co-founder, Dream, warned that cyber attacks are evolving rapidly alongside the expansion of AI-powered systems.
“Cyber attacks are no longer isolated technical incidents. They can affect the systems countries rely on every day: energy infrastructure, ports, aviation, financial systems, telecom networks, government services, and public trust,” Hulio said.
He noted that attackers are becoming increasingly automated and scalable, forcing governments to rethink traditional cybersecurity strategies that rely on fragmented defensive systems and manual monitoring.
“Cyber resilience can no longer be treated as a secondary IT problem. It has become part of national planning,” he added.
National control
The growing concern over cyber vulnerabilities is driving a broader shift towards sovereign AI — a model where countries maintain direct control over their AI infrastructure, operational systems, and sensitive national data.
Hulio argued that there is a major distinction between adopting AI tools and building sovereign AI capabilities capable of operating securely within government environments.
“There is a huge difference between using AI and controlling AI. Many countries are adopting AI tools. Very few are building sovereign AI capability,” he said.
According to Hulio, governments face mounting pressure to ensure AI systems can securely support critical services including emergency response, transport infrastructure, utilities, and financial systems without exposing sensitive state operations to external risks.
UAE momentum
The UAE has emerged as one of the region’s most aggressive adopters of AI-led governance and digital transformation, supported by large-scale investment in infrastructure, cyber resilience, regulation, education, and talent development.
Hulio said the country stands apart because it is actively implementing AI capabilities rather than limiting its ambitions to policy frameworks.
“Many countries announce AI strategies. The UAE operationalises them,” he said.
He added that the UAE’s approach combines “ambition and pragmatism” by developing the broader foundations needed to support AI-enabled governance at scale.
Fragmented systems
One of the biggest challenges governments face, according to Hulio, is the fragmentation of digital systems across ministries and agencies, making secure AI integration significantly more difficult.
Sensitive government data is often dispersed across disconnected systems, limiting coordination and slowing responses during cyber incidents.
“You cannot simply plug a public AI model into a sensitive government environment,” Hulio explained, adding that Dream was designed specifically to address national-scale cyber and AI security challenges.
He warned that many governments continue attempting to manage increasingly advanced cyber threats using outdated enterprise-level tools that are poorly connected across agencies and institutions.
Future competition
The Gulf’s push towards sovereign AI also reflects wider geopolitical concerns over dependence on foreign technology providers for critical digital infrastructure.
Hulio said future digital leaders will need to develop capabilities across multiple advanced technologies simultaneously.
“The next generation of leading digital economies will need to develop strength across three strategic pillars – Cyber, AI, and quantum computing,” he concluded.
Gulf economies invest heavily in digital transformation and economic diversification, policymakers increasingly view AI governance and cyber resilience as essential to long-term competitiveness.