Driving commercial and political engagement between Asia, the Middle East and Europe
Driving commercial and political engagement between Asia, the Middle East and Europe
Driving commercial and political engagement between Asia, the Middle East and Europe
By Elizabeth Heyes, Middle East Programme Intern at Asia House.
Key takeaways
Introduction
Qatar’s strategy for Artificial Intelligence (AI) is developing with less fanfare than its neighbours in the GCC but is advancing apace. Developing a strong technology offering and digital transformation is key to achieving the country’s economic diversification plans, expressed in Qatar’s National Vision 2030.[1] Although Qatar’s current AI strategy has not been updated in nearly five years and state news coverage of AI initiatives lacks the detail seen in neighbouring countries, the nation is actively developing its AI capabilities. Qatar’s approach to AI diverges from that of its neighbours in several key areas, potentially opening up unique business and investment opportunities.
Qatar’s AI strategy: data infrastructure for economic growth
Qatar is focused on developing its domestic AI capabilities through data collection and management. Though the revenue of the data centre market in Qatar is significantly smaller than larger players Saudi Arabia and the UAE, forecasts suggest that growth in population size and data centres’ capacity will place Qatar second only to the UAE for capacity provision per capita in the GCC region.[2] The collection, storage and analysis of data is essential to improving AI services in strategic sectors including healthcare, petrochemicals and financial services. Moreover, Qatar’s ambition to develop a technologically-advanced smart city, Lusail, requires vast amounts of data to perform the complex sustainable architecture and automated services that will sustain the country’s highly urban population into the future. Recent investments from Microsoft and Google to provide data centre and cloud computing services in Qatar are predicted to generate a combined total of US$35.9 billion in revenue according to the two companies,[3] illustrating the significant economic benefits of the sector for Qatar as well as the confidence big tech companies have in Qatar’s data sector market.
Access to semiconductors, also known as “chips”, is also an essential component to developing a market in the field of AI. GCC countries have increasingly identified domestic manufacturing of chips as a means to prevent supply chain and foreign policy issues impeding access.[4] This was highlighted amid reports from global news agencies that the Biden administration planned to restrict US chip companies’ sales to the Middle East in 2023 to prevent potential access by China.[5] Amid these developments, Saudi Arabia and the UAE have pushed for the expansion of national chip manufacturing capabilities.[6]
For Qatar, however, domestic manufacturing is less of a priority. The country has developed strong relationships with leading suppliers to secure access to cutting edge chips, as demonstrated by the recent Ooredoo-Nvidia partnership.[7] This deal was US-based Nvidia’s first large-scale entry into the Middle East region[8] and is set to provide thousands of Nvidia’s advanced Tensor Core chips to Qatar for deployment across Ooredoo data centres within the country and in Kuwait, Oman, Algeria, Tunisia and the Maldives.[9] Qatar’s strategy in the semiconductor sector is generally procurement-focused – an approach which allows the country to avoid the significant costs and complexities associated with developing its own chip facilities.
Qatar’s AI regulation strategy: alignment with US and EU standards
The Qatari approach to AI and data regulation shows a notable divergence from some neighbouring Gulf states. Saudi Arabia and the UAE have thus far taken a “soft law” approach[10] by announcing non-binding principles[11] on ethical and security considerations for AI design and use rather than concrete laws, with the exception of decrees regarding the processing of personal data.[12] This policy exists in the context of various AI companies’ claims that over-regulation of the sector threatens to stifle innovation and curb the competitiveness of those operating in over-regulated jurisdictions.[13]
Qatari companies and government officials, however, have made clear their intention to comply with US and EU policies, encapsulated in the US’ Executive Order on AI and the EU’s AI Act. The President of Qatar’s Civil Service and Government Development Bureau, Abdulaziz bin Nasser Al Khalifa, has stressed that Qatar follows European guidelines in utilising AI,[14] and Ooredoo CEO, Aziz Aluthman Fakroo, also highlighted that the deal to obtain chips from Nvidia was compliant with all US regulations.[15] Compliance with the regulatory frameworks of the US and Europe, both major exporters of advanced technology, offers a significant advantage for AI companies operating in Qatar. This alignment is likely to ensure stable cooperation with stakeholders in the EU and US, particularly given the current environment of regulation-related restrictions on products and services.
Priority use cases for AI: advancing healthcare, labour and critical infrastructure for national progress
Qatar’s intended uses of AI technology generally align with broader Gulf states’ ambitions in the energy, healthcare, finance, and government services sectors. Leveraging the potential of AI for automating tasks, improving accuracy and providing personalised services in these sectors is expected to accelerate Gulf economic diversification.
Among these sectors, Qatar has demonstrated particular interest in the application of AI in healthcare, while maintaining a focus on data collection and management services. In 2023, the Qatar Computing Research Institute (QCRI) and Huawei jointly developed the Smart Individualised Health Analytics (SIHA) platform, capable of integrating data from Huawei’s wearable device, the Huawei Watch GT 4, and giving access to real-time health data for the purpose of innovating and personalising healthcare provision.[16] Qatar’s decision to push ahead with Huawei, a company subject to heavy US sanctions, is also worth noting as it indicates the Gulf state’s openness to pursuing trade with companies aside from those based in the West. This not only reflects Qatar’s strategic approach to gain access to advanced technologies, but also supports its goal of leveraging advanced AI capabilities to manage the growing demands of its healthcare sector, thereby reinforcing its position as the leading healthcare provider in the Arab world, according to 2023 health systems rankings.[17]
Recent initiatives in the labour sector also indicate Qatar’s interest in leveraging AI solutions to streamline workflows and improve employee training and education. Over the last year, Qatar Research, Development and Innovation (QDRI) and Qatar’s Ministry of Labour have invited leading innovators to develop solutions for document analysis and certification,[18] seemingly to speed up work permit and recruitment approvals in the public sector,[19] as well as training and development initiatives and reporting mechanisms for human resources (HR) management using AI.[20] The technology’s potential to reduce reliance on manual labour serves the country’s overall aim to build a sustainable, knowledge-based economy as part of its National Vision 2030, in turn driving economic growth.
AI use cases in critical national infrastructure (CNI) have received considerable attention from both government departments and the private sector. In 2023, Qatar General Electricity and Water Corporation (KAHRAMAA), in collaboration with Microsoft and KPMG, launched a new large-scale platform utilising cloud computing and AI to improve operational efficiency in the water and electricity sectors.[21] With over 99 per cent of Qatar’s population living in urban areas,[22] implementing AI into these services will increase their resilience and capacity to enhance residents’ quality of life.
Outlook for AI business, trade and investment in Qatar
The outlook for AI-related industries in Qatar is promising. Companies specialising in AI hardware are likely to find a receptive market due to Qatar’s procurement-focused strategy. Data centre and infrastructure providers, as well as companies offering data analytics, cloud computing and AI-driven technologies also appear to be particularly in demand given the vast data requirements necessary to achieve Qatar’s ambitions to maintain and improve its high-quality public services and enhance businesses’ efficiency. Moreover, Qatar’s preference for integration into existing AI regulatory frameworks may offer reassurance to international partners and investors, ensuring dependable supply chains and ease of operating across borders.
[1] Source: https://mofa.gov.qa/en/qatar/latest-articles/latest-news/details/1444/08/21/qatar-affirms-digital-transformation-essential-to-national-vision-2030
[2] It is predicted that the UAE will be able to offer a capacity of 18.5 megawatts (MW) per capita, Qatar 11.4 MW per capita, and Saudi Arabia 4.7 MW per capita. This is based on countries predicted data centre capacity in MW for 2028-29 by Arizton Advisory and Intelligence, and population forecasts for 2028-2029 by Statista.
[3] Microsoft: https://news.microsoft.com/en-xm/2022/08/31/microsoft-opens-first-global-datacenter-region-in-qatar-bringing-new-opportunities-for-a-cloud-first-economy/
Google: https://cloud.google.com/blog/products/infrastructure/new-doha-google-cloud-region-is-now-open
[4] Arab News: https://www.arabnews.com/node/2533481
[5] Al Monitor: https://www.al-monitor.com/originals/2024/05/us-reportedly-slows-ai-chip-exports-mideast-saudi-arabia-turns-china
[6] Saudi Arabia: https://www.arabnews.com/node/2533481
UAE: https://coingeek.com/abu-dhabi-sets-up-investment-firm-to-achieve-ai-ambitions/
[7] CNBC: https://www.cnbc.com/2024/06/26/nvidia-deal-us-chip-curbs-just-business-as-usual-ooredoo-ceo.html
[8] Ibid.
[9] Ooredoo: https://www.ooredoo.com/en/media/news_view/ooredoo-group-pioneers-ai-revolution-in-mena-region-with-nvidia-collaboration/
[10] University of York: https://www.york.ac.uk/assuring-autonomy/news/blog/ai-regulation-middle-east/
[11] Pinsent Masons: https://www.pinsentmasons.com/out-law/analysis/gulf-governments-approach-to-ai-regulation
[12] Saudi Arabia: https://www.lw.com/en/people/admin/upload/SiteAttachments/Lexology-In-Depth-Artificial-Intelligence-Law-Saudi-Arabia.pdf
[13] CSIS: https://www.csis.org/analysis/biden-administrations-executive-order-artificial-intelligence
[14] Marhaba: https://marhaba.qa/harnessing-ai-in-qatars-legal-systems/
[15] CNBC: https://www.cnbc.com/2024/06/26/nvidia-deal-us-chip-curbs-just-business-as-usual-ooredoo-ceo.html
[16] The Peninsula: https://thepeninsulaqatar.com/article/17/10/2023/qcri-integrates-huawei-watch-gt-4-in-health-research-for-siha
[17] Statista: https://www.statista.com/statistics/1376359/health-and-health-system-ranking-of-countries-worldwide/
Numbeo: https://www.numbeo.com/health-care/rankings_by_country.jsp?title=2023
[18] Gulf Times: QRDI Council and Ministry of Labour partner to drive innovation in Qatar’s labour sector – Gulf Times (gulf-times.com)
[19] Marhaba: QRDI Council Launches Open Innovation Opportunities with the Ministry of Labour (marhaba.qa)
[20] Gulf Times: https://www.gulf-times.com/article/686637/qatar/qrdi-council-matar-explore-innovative-hr-development-solutions
[21] Microsoft: https://news.microsoft.com/en-xm/2023/03/09/under-the-qatar-national-artificial-intelligence-strategy-kahramaa-launches-ai-platform-in-collaboration-with-microsoft-and-kpmg/
[22] Macrotrends: https://www.macrotrends.net/global-metrics/countries/QAT/qatar/urban-population
Asia House is working with governments across Asia, the Middle East and the West, as well as multilateral organisations and the private sector, to drive commercial and political engagement around key issues in global trade. For more information on our research and programmes, please contact Katie Reid, Stakeholder Engagement Associate via katie.reid@asiahouse.co.uk.
