GCC leads global shift to programme-scale AI
The Gulf Cooperation Council (GCC) has become one of the world’s fastest-moving regions for artificial intelligence (AI) adoption in infrastructure as governments, asset owners and developers embed digital transformation into national development strategies, according to a top executive of US-headquartered global technology, engineering, and defense firm Parsons.
Max Clark, Chief Technology Officer for Europe, the Middle East and Africa (EMEA) at Parsons, told Zawya Projects that AI is no longer being deployed only on individual projects but is increasingly being implemented across entire infrastructure programmes and portfolios.
“It has become embedded in National Visions and strategies and we have seen ministries set up to accelerate its adoption,” he said.
“Initiatives around smart cities, digital infrastructure, and next-generation asset management create an environment where AI can be deployed at programme and portfolio scale, not just on individual projects.”
He said the speed of adoption, the scale of programmes, and the ability to design digital capability into new infrastructure from the outset distinguishes the GCC from other major markets.
“Europe, by comparison, often has more complex compliance and privacy considerations, while North America has deep technical capability and mature digital markets,” he said.
Infrastructure owners across the region are integrating AI into long-term asset strategies, according to Clark.
UAE PMI climbs to 52.7
The UAE’s non-oil private sector strengthened in July, with the Purchasing Managers’ Index rising to 52.7 from 50.8 in June, while Qatar’s PMI improved to 48.5 from 47.6 as it remained below the neutral 50-point threshold.
The latest S&P Global Purchasing Managers’ Index survey showed the UAE’s headline reading climbing to its highest level in four months, supported by stronger demand, a five-month high in new business growth, and a return to employment growth.
Despite the improvement, businesses continued to face persistent supply chain disruptions and elevated cost pressures, while business confidence softened amid ongoing competitive pressures.
The survey adds to broader signs of resilience in the UAE economy despite regional geopolitical tensions, with the International Monetary Fund saying in July that the country has demonstrated “significant resilience” to the conflict in the Middle East as it forecast real gross domestic product growth of 3.3 percent in 2026 and 4.4 percent in 2027.
David Owen, principal economist at S&P Global Market Intelligence, said: “July data signalled some relief for UAE companies after the PMI dropped perilously close to the 50 neutral threshold in June, as a restoration of business confidence and a period of smoother trade flows allowed for a pick-up in growth.”
UAE recovery explains fortitude must be built in advance
During the past five months, the UAE and its economy have experienced events that would leave most other countries quite damaged. The Iran war – arguably the Gulf’s biggest challenge since Covid-19 – has disrupted energy, shipping and investment as well as shaking confidence across the region. That the UAE’s success has been built on openness and connectivity made such upheaval a challenge for a number of sectors. However, new data paints a picture of an economy and society that weathered the storm and rebounded.
UAE sees deeper diversification
The UAE economy grew by 3 percent in the first quarter of 2026, taking real gross domestic product to Dh485 billion from Dh470.9 billion a year earlier. Yet the stronger measure of progress lies in the economy’s changing composition.
Non-oil GDP expanded by 4.8 percent, outpacing overall growth and increasing its share of national output from 78 percent to 79.4 percent within a year. Nearly four-fifths of the economy now comes from activities outside oil.
This reflects the expansion of the UAE’s productive base following years of government policies covering investment, trade, infrastructure, technology and business development.
Together, these results indicate that diversification is widening the economy’s foundations while creating more channels for investment, trade, employment and national long-term growth.
Qatar targets $100bn in foreign investment
Qatar’s non-hydrocarbon economy now accounts for 65.5 percent of GDP, highlighting the country’s accelerating shift away from hydrocarbon dependence as it pursues an ambitious economic diversification strategy, according to Oxford Business Group (OBG).
The global advisory and research firm’s latest publication, The Report: Qatar 2026, says the country’s long-term transformation is being driven by regulatory reform, infrastructure investment and a target to attract $100bn in foreign direct investment (FDI) by 2030.
According to the report, growth across construction, trade, tourism, logistics, information and communications technology (ICT) and financial services has helped non-hydrocarbon sectors reach 65.5 percent of GDP.
Saudi Arabia attracts $36.3bn in FDI
Saudi Arabia attracted SR136bn ($36.3bn) in foreign direct investment (FDI) during 2025, reinforcing its position as one of the world’s fastest-growing investment destinations as the Kingdom prepares to enter the third phase of Vision 2030.
According to official figures, FDI inflows increased 14 percent year-on-year, while Saudi Arabia climbed to 13th among the world’s largest FDI recipients and continued attracting international companies to establish regional headquarters in Riyadh.
The Kingdom said it is entering the 2026-2030 phase of Saudi Vision 2030 with a renewed focus on aligning strategic financial planning with regional development strategies to support long-term economic diversification.