Summary of Key Points
Traditional oil-producing countries in the Middle East (primarily the UAE and Saudi Arabia) are viewing artificial intelligence (AI) as the “new oil” and are making every effort to advance their AI strategies to achieve economic transformation. China’s cooperation with the Middle East has evolved from merely selling equipment to comprehensive collaboration, with efforts also extending to less developed countries such as Egypt. However, there are concerns regarding the Middle East’s reliance on Western technology for AI development and the vulnerabilities in its digital infrastructure security. Academics have also noted that AI could potentially change the regional power structure.
Why Are Middle Eastern Oil-Producing Countries So Eager to Embrace AI?
Middle Eastern countries have profited from oil for decades, but there is always the risk of resource depletion, coupled with significant fluctuations in oil prices. With the current global surge in interest in AI, they aim to make it a new economic pillar, just as oil once did. For example, the UAE appointed its first Minister of State for Artificial Intelligence in 2017 and launched the “National AI Strategy 2031,” aiming for AI to account for 20% of non-oil revenue (about $91 billion) by 2031. Saudi Arabia has made AI a core component of its “Vision 2030” initiative, establishing a Data and Artificial Intelligence Authority in 2020 with the goal of becoming one of the top 15 global AI powers by 2030, expecting AI to contribute 12.4% to its GDP. These countries wish to increase their influence beyond geopolitical constraints and use AI to enhance their decision-making power.
The UAE and Saudi Arabia’s Approaches to AI
Despite both countries pursuing AI development, their approaches differ:
- The UAE: Started early and is taking aggressive steps, such as collaborating with foreign companies early on, which has also brought more external pressure (e.g., from Western technological restrictions).
- Saudi Arabia: Wealthy but cautious, gradually increasing investment while maintaining neutrality in its partnerships to avoid aligning itself with any one side.
According to Researcher Zou Zhiqiang from Fudan University, Gulf Cooperation Council countries (including the UAE and Saudi Arabia) want to be self-reliant in AI, but they still rely on Western technologies for key components like hardware, cloud services, and software, with most investments flowing towards Western companies.
Weaknesses in Middle Eastern AI Development
There are two major challenges:
1. Technological Dependence on the West: Despite having funds, the UAE and Saudi Arabia need to import chips, cloud services, and software ecosystems from the West, leaving them vulnerable to supply disruptions.
2. Vulnerability of Digital Infrastructure: AI relies on data centers and undersea cables for communication. During recent conflicts, Iran targeted AI-related infrastructure in the UAE and Bahrain, as well as American companies like Cisco and Microsoft. As Researcher Han Jianwei from Shanghai International Studies University explains, more complex algorithms increase the risk associated with vulnerable digital infrastructures.
China’s Cooperation with the Middle East in AI
China’s cooperation with the Middle East is becoming more substantial:
- Evolution of Cooperation: It has shifted from selling equipment to joint investment and technology transfer (e.g., helping build data centers).
- Saudi Arabia’s Active Role: The Saudi Data and Artificial Intelligence Authority acknowledges China’s technological strength and considers it a key partner. They are collaborating with Huawei and Alibaba Cloud on high-performance computing and big data platforms, as well as exchanging experiences in data governance and AI ethics.
- Expansion to Less Developed Countries: Egypt has utilized Chinese technology to establish a government data and cloud center, which is now being used by over 200 companies. Researcher Zhou Yiqi emphasizes the importance of expanding cooperation beyond Gulf countries to all Arab nations, helping them develop smart cities and smart agriculture to enhance their autonomy.
New Academic Perspectives on Regional Power Structures
Previously, Middle Eastern academia focused mainly on major countries like Saudi Arabia, Turkey, and Egypt. However, researchers like Sun Degang from Fudan University point out that smaller, technologically advanced countries like the UAE are gaining increasing influence. AI could potentially change the regional power balance, prompting academics to pay more attention to these emerging players.
In summary, for the Middle East, embracing AI presents both opportunities and challenges. China’s cooperation with these regions is deepening and expanding, helping them reduce their dependence on oil while addressing technological and security issues.