Factbox-Rising conflicts draw attention to major tech firms' AI investments in the Middle East

Major Tech Investments in the Middle East Amid Regional Tensions

As the U.S. and Israel intensify their aerial operations against Iran, new doubts have emerged over the Middle East’s stability—a region that has recently attracted significant global investment, aiming to become a leading center for technology and artificial intelligence.

Middle Eastern nations are channeling substantial resources into artificial intelligence, semiconductor collaborations, and cloud computing. These efforts are part of broader strategies to draw international investors and foster robust local tech industries.

Key Technology Investment Initiatives

• Microsoft

  Microsoft has committed $15.2 billion to the United Arab Emirates from 2023 to 2029, focusing on its growing AI collaboration with sovereign AI company G42. To date, the company has already invested $7.3 billion, which includes a $1.5 billion equity stake in G42 and over $4.6 billion dedicated to AI and cloud infrastructure. From 2026 to 2029, Microsoft plans to allocate more than $7.9 billion as part of its overall investment.

• Amazon.com

  Amazon Web Services is set to invest upwards of $5.3 billion in Saudi Arabia by 2026, establishing a new data center region. This move supports Saudi Arabia’s ambitions to become a regional technology powerhouse ahead of World Expo 2030. The initiative also includes training programs for local cloud professionals and will provide Saudi businesses and developers with comprehensive access to Amazon’s cloud and AI offerings.

• Alphabet

  Google Cloud, in partnership with Saudi Arabia’s Public Investment Fund and local tech company Humain, has announced a $10 billion investment to develop and operate a global AI hub in Saudi Arabia. This project was unveiled in 2024.

• Oracle

  Oracle is investing $1.5 billion to enhance its cloud infrastructure in Saudi Arabia, which includes launching a new public cloud region in Riyadh and expanding its existing Jeddah facilities, in cooperation with the Ministry of Communications. Additionally, Oracle and Nvidia revealed in late 2025 that they are strengthening their partnership to advance sovereign AI initiatives, such as collaborating with Abu Dhabi’s Department of Government Enablement to create secure, AI-driven government systems.

Contributors: Kritika Lamba and Akash Sriram in Bengaluru; Edited by Sriraj Kalluvila