A Shift Toward “Cognitive Infrastructure” in the Gulf
In 2026, the Gulf Cooperation Council (GCC) countries are undergoing a profound transformation—from a focus on physical infrastructure to what can be described as “cognitive infrastructure.” These nations are investing heavily in artificial intelligence, data, and digital systems at a national scale, moving beyond pilot projects to widespread deployment.
Smart Cities: Dubai and Abu Dhabi Among the Global Top 10
In a milestone reflecting the success of the Gulf’s digital transformation model, Dubai and Abu Dhabi achieved top rankings in the 2026 Smart City Index issued by the International Institute for Management Development (IMD). Dubai ranked 6th globally, while Abu Dhabi placed 10th out of 148 evaluated cities.
The report highlighted the Gulf model—particularly in the UAE—as a global example of effective, government-led digital investment. This approach has significantly enhanced public trust and urban performance. Public confidence in digital services reached 95.7% in Dubai and 89% in Abu Dhabi, reflecting tangible improvements in everyday life.
Massive Investments in AI Infrastructure
AI technologies are expected to contribute approximately $150 billion to GCC economies, with annual contributions projected to reach $260 billion by 2030.
In the UAE, the first phase (200 MW) of the “Stargate UAE” AI project is expected to go live in 2026. The project aims to build a 1 GW AI computing cluster, developed by G42 and operated by OpenAI and Oracle. Additionally, Microsoft and G42 announced the addition of another 200 MW in data center capacity as part of a $15+ billion investment, with operations expected to begin in 2026.
In Saudi Arabia, construction continues on the NEOM green hydrogen project, expected to be completed in 2026 as the world’s largest utility-scale facility of its kind. Saudi cities are also expanding the use of digital twin technologies to manage infrastructure, energy networks, and industrial operations in real time. HUMAIN, a government-backed company, has begun building data centers in Riyadh and Dammam, both expected to be operational in 2026.
Oman plans to launch its second satellite, OL-2, to enhance Earth observation and data analytics capabilities. Meanwhile, its national AI and advanced digital technologies program—launched in 2024 to integrate AI into logistics and energy sectors—is scheduled to conclude in 2026.
Gulf Leadership in Digital Transformation and 5G
Research by GSMA Intelligence shows that Qatar, Saudi Arabia, and the UAE rank among the top seven countries globally in digital transformation.
In 5G, GCC operators are leading globally in adopting advanced technologies such as private networks and edge computing. Of the seven operators worldwide that launched 5G-Advanced by September 2025, two are from the Gulf. Additionally, 11 more GCC operators have announced plans to deploy the technology, bringing the total to 13—highlighting the region’s ambition to lead in next-generation connectivity.
UAE: Digital Payments and AI Partnerships
In a move supporting the transition to a cashless economy, the UAE Central Bank granted MBME Pay a Category 3 Payment Service Provider license, enabling merchant acquisition and payment aggregation. This positions the company among a select group of fully regulated payment providers in the country.
In Sharjah, the Sharjah Digital Department signed an MoU with Dell Technologies to launch a comprehensive AI capacity-building program. The initiative includes training, knowledge transfer, and specialized workshops targeting executives, developers, and professionals across sectors such as culture, agriculture, and the arts.
Sheikh Saud bin Sultan Al Qasimi emphasized that AI is not merely a technical tool but a core driver of government transformation, aligning with Sharjah’s Digital Transformation Strategy 2026–2028.
Qatar: Innovation Labs and Unified Digital Platforms
Qatar’s Ministry of Communications and Information Technology, through the TASMU Innovation Lab, hosted a demo day showcasing four AI and XR-based prototype solutions addressing real-world challenges in healthcare, compliance, procurement, and smart mobility.
These included:
- A secure AI tool for anonymizing medical imaging
- A digital compliance analyzer
- An intelligent RFP generator
- An XR-based parking design solution
The lab provides a controlled environment for testing emerging technologies before large-scale deployment.
Additionally, Qatar’s Civil Service and Government Development Bureau, in collaboration with the Ministry of Sports and Youth, is developing a unified digital platform for sports services—offering event registration, scheduling, updates, and feedback in a single interface.
Regional Cooperation: GCC–DCO Digital Roadmap
In a step toward deeper regional integration, the GCC Secretariat and the Digital Cooperation Organization signed an executive program outlining a digital cooperation roadmap through 2026.
The program focuses on:
- Digital government
- AI ethics
- Cross-border data policies
- Regulatory harmonization
It also includes initiatives to:
- Increase women’s participation in the digital economy
- Combat misinformation
- Manage e-waste
- Support startups
This marks a shift from dialogue to actionable collaboration.
Oman: Strengthening the Digital Economy
Oman’s Shura Council held discussions on enhancing the digital economy by empowering local tech companies and strengthening cybersecurity and AI capabilities in line with Oman Vision 2040.
Members emphasized:
- Creating a supportive innovation environment
- Enhancing logistics through unified port governance
- Simplifying licensing and customs procedures
They also warned of risks related to foreign dominance in digital technologies and stressed the importance of digital sovereignty.
The Broader Gulf Digital Landscape
In 2026, the Gulf region is moving decisively toward a digital-first future. The focus has shifted from physical megaprojects to “cognitive infrastructure”—including hyperscale data centers, AI platforms, digital twins, and smart cities.
GCC countries are investing billions and aligning regionally through ambitious cooperation frameworks. The key challenge ahead lies in ensuring that these investments:
- Meet the needs of citizens and residents
- Build trust in digital services
- Safeguard digital sovereignty
- Empower national talent
What is unfolding in the Gulf is not merely a technological race—it is a redefinition of development and competitiveness in the 21st century.
