MENA sovereign wealth funds boost AI investments

Over the past year, three of the Middle East and North Africa's (MENA) largest sovereign wealth funds—the Public Investment Fund (PIF) of Saudi Arabia, the Qatar Investment Authority (QIA), and Abu Dhabi's Mubadala Investment Company—have significantly increased their investments in artificial intelligence (AI), underscoring the region's commitment to technological advancement and economic diversification.

Saudi Arabia's PIF has been at the forefront of integrating AI into its investment strategy. In 2024, the fund announced plans to launch a $40 billion fund dedicated to AI, potentially in partnership with venture capital firm Andreessen Horowitz.

This initiative aligns with Saudi Arabia's Vision 2030 plan to diversify its economy beyond oil and establish the kingdom as a leader in technological innovation. PIF's governor, Yasir al-Rumayyan, has been instrumental in steering the fund toward tech investments, starting with a $3.5 billion investment in Uber in 2016. 

The fund's recent focus includes collaborations with companies like Groq and Google Cloud, indicating a strategic move to bolster Saudi Arabia's domestic AI capabilities.

The Qatar Investment Authority has also been active in the AI investment landscape. While specific details of QIA's AI investments over the past year are less publicized, the fund has shown interest in technology and innovation sectors, aligning with Qatar's National Vision 2030, which emphasizes the importance of a knowledge-based economy. QIA's strategic investments aim to position Qatar as a hub for technological advancement in the region.

Abu Dhabi's Mubadala Investment Company significantly increased its investment activity in 2024, deploying $29.2 billion compared to $17.5 billion in 2023. This surge positioned Mubadala as the world's most active sovereign wealth fund, surpassing Saudi Arabia's PIF. 

A substantial portion of these investments targeted AI and technology sectors. Notably, Mubadala partnered with G42, an Abu Dhabi-based AI firm, to launch MGX, a $100 billion fund dedicated to AI technologies. MGX has been in discussions to invest in OpenAI as part of a substantial fundraising round, aiming to inject up to $6.5 billion, reflecting Abu Dhabi's ambition to become a global leader in AI.

These strategic investments by PIF, QIA, and Mubadala highlight the MENA region's proactive approach to embracing AI, aiming to transform their economies and establish a significant presence in the global technology landscape.

Forbes Middle East, in its March edition, details the investments made by PIF, QIA, and Mubadala.