In the past years, the world has seen widespread layoffs in the tech space. Venture capital funding is declining, and company valuations are failing. According to fDi Intelligence, tech foreign direct investment (FDI) plummeted globally between 2022 and 2023. Around a 40 percent year-on-year decline to be exact.
But, as they say, there will always be outliers.
Emerging as a resilient, rising tech hub, the Middle East was the only region to experience an increase in inbound tech FDI projects last year — from 384 in 2022 to 400 projects in 2023.
This surge can be seen as a result of the region’s collective strategic foresight and robust policymaking.
For instance, the United Arab Emirates (UAE) launched its Strategy for Artificial Intelligence (AI) as early as 2017. Today, advanced technology has penetrated almost all sectors in the UAE.
Alef Education, headquartered in Abu Dhabi, is the region’s leading K-12 EdTech company. Tech giant e& is also at the forefront of the region’s digital transformation. Projects like EASE, the world’s first autonomous telecom store, showcase a desire to leverage tech to redefine traditional experiences.
The lens through which the region views a more tech-driven future is only getting wider, thanks to the strong synergy between the public and private sector.
The UAE’s Khalifa Fund, for example, fosters innovation and entrepreneurship by funding SMEs in priority sectors — including information and communications technology.
Meanwhile, in Saudi Arabia, another Middle Eastern nation betting big on tech to diversify its economy, the sovereign wealth fund established the tech firm Alat earlier this year. According to reports, Saudi policymakers are keen to invest about $100 billion into Alat by 2030, with hopes of advancing the development of AI, robotics, and smart cities, among others.
There has also been an influx of tech-focused entities in the country. According to the Ministry of Commerce, Saudi Arabia saw a robust growth in registrations of AI technologies (53 percent) and cloud computing services (43 percent) in the second quarter of 2024.
This surge is also happening in Qatar, which hosted the most digitally advanced FIFA World Cup tournament back in 2022. In the first half of this year, the Qatar Financial Center recorded a huge jump in company registrations — 38 percent of which are in tech — mainly due to favorable policies.
In the midst of these milestones, the region is also dedicated to using tech to support the green movement. For instance, Qatar’s Digital Agenda 2030 recognizes the need to implement an environmental tech program that reduces the tech sector’s carbon footprint. Private entities like the UAE-based Rebound also do their part. The digital platform serves as a marketplace that connects buyers, sellers, and partners of recyclable materials globally.
All of these developments demonstrate the region’s collective commitment to harnessing technology — not just to diversify the economy but also to attain a sustainable, digitally driven future.
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