Middle East Energy Bets Big on AI

Qai, Brookfield, SLB, Shell, and Gulf states fast-track AI to fuel the next energy era

11 Dec 2025

The Middle East energy sector is entering a new phase as governments and companies accelerate investment in artificial intelligence to strengthen long-term competitiveness. Long supported by large resource reserves, the region is now placing digital capability at the centre of future growth plans.

One of the most visible projects is the $20bn joint venture between Qatar’s national AI company Qai, launched by the State of Qatar and owned by the country’s sovereign wealth fund, and Brookfield. The partnership aims to build an advanced computing ecosystem to support industries that rely on high-speed data processing. For oil and gas operators managing large volumes of geological and operational data, the initiative signals a shift towards computational power becoming as important as physical assets.

SLB and Shell are also expanding work on AI tools for exploration and production. Their collaboration reflects a broader pattern across the sector as companies deploy algorithms to improve subsurface modelling, reduce uncertainty and increase efficiency. Analysts say these partnerships combine established engineering expertise with rapid digital innovation.

Governments in Qatar, the UAE and Saudi Arabia are backing this momentum through national AI strategies, new research centres and investment in digital infrastructure. These programmes form the policy framework that enables ventures such as the Brookfield Qai project to scale and attract international partners.

Executives remain broadly positive. A senior ADNOC strategist recently described AI as a foundation for future competitiveness, arguing that early adopters will benefit as automation and predictive tools reshape operating models. At the same time, some industry leaders point to challenges. Dependence on external technology suppliers has raised concerns about data sovereignty and long-term resilience. Others highlight the need to develop a workforce capable of supporting more complex systems.

Despite these issues, investment indicators remain firm. Governments are speeding up modernisation plans, corporate alliances are widening and AI is becoming central to strategic discussions. Many observers view the current initiatives as the early stage of a wider transformation likely to shape the next era of Middle East energy development.