Oil-producing countries in the Middle East have begun to divert their immense energy profits into multiple AI-related infrastructures.
Everyone is talking about artificial intelligence (AI) but few are investing in it like the Gulf monarchies. The oil-producing countries of the Middle East have started to divert their immense, enormous, infinite energy revenues into a series of infrastructures connected to the AI sector and other high-tech fields.
Their goals? Diversify revenues for the future – revenues still too dependent on oil – and, at the same time, try to become protagonists in the high-tech field. “We missed the first industrial revolution, but we are not missing the AI revolution,” said Shihab Ahmed Al-Faheem, UAE ambassador to Japan, during an international symposium on AI held in Tokyo on September 18.
During this event, co-hosted by the Research Center for Advanced Science and Technology (RCAST) of the University of Tokyo and an Abu Dhabi-based think tank, Trends Research & Advisory, interesting ideas emerged, useful for understanding a trend that will accompany us from now to the next few years: the pouring of petrodollars into AI and, more generally, into technology.
Objective: Artificial Intelligence
The magazine Nikkei Asian Review offered almost complete coverage of the Japanese event. Mohammed Abdullah Al-Ali, CEO of Trends Research & Advisory, pointed out that AI will significantly influence areas such as climate change mitigation, cybersecurity and medical innovation.
Well, among OPEC members, the United Arab Emirates was the first to try to diversify its oil-dependent economy. In 2017, it appointed the world’s first AI minister, stressing that it wanted to consider technology as its main growth engine.
In March, Abu Dhabi, the largest emirate in the United Arab Emirates, announced an investment plan in artificial intelligence and founded the technology investment firm MGX. A few weeks ago, MGX itself established a fund worth $30 billion in partnership with US asset manager BlackRock and Microsoft. The purpose of the fund? To invest in data centers and related infrastructure, the new oil of the future.
Saudi Arabia’s moves
And Saudi Arabia? After focusing on building soft power through sports and culture, Riyadh, the world’s largest oil exporter, is putting more emphasis on AI. The country is teaming up with a U.S. venture capital firm to create an AI investment fund, the New York Times reported. State-owned oil companies in Saudi Arabia and the UAE are also using AI to improve the efficiency of their energy production.
For oil producers in the Middle East, AI offers a potentially crucial springboard for growth. Experts say the region’s players are looking to bypass the traditional path to economic development through manufacturing by working with international players equipped with advanced AI technology.
The boom in global AI investment presents a huge opportunity for oil exporters. Such players are in an excellent position to finance the construction of data centers and supporting infrastructure, which require substantial investment. Why data centers? By building similar sites locally, petrostates can ensure data sovereignty while leveraging their low-cost energy resources.
Last but not least, and as anticipated, AI could significantly improve oil and gas production, for example by simplifying exploration, drilling and maintenance of the facilities, thus lowering production costs. China has already taken important steps to share its know how in this area with both Saudi Arabia and the United Arab Emirates. Beijing is well placed to be the catalyst of OPEC’s intelligent revolution.
Original article published on Money.it Italy 2024-10-15 11:04:00. Original title: Dagli Emirati Arabi all’Arabia Saudita: perché i produttori di petrolio puntano sull’intelligenza artificiale
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