Bridgewater Associates founder Ray Dalio has identified the Middle East as the world’s next great technology hub, likening its momentum in artificial intelligence to the early days of Silicon Valley.
Speaking in Abu Dhabi, Dalio emphasized that the region’s combination of capital, talent, and long-term planning is creating a fertile environment for innovation.
With sovereign wealth funds backing multibillion-dollar projects and global technology leaders establishing a presence, he believes investors should pay close attention to the Gulf states as they position themselves at the forefront of the AI revolution.
Why Dalio sees the Middle East as the new Silicon Valley
Dalio argues that the Gulf’s transformation is not accidental but the result of deliberate statecraft.
He highlighted how countries such as the United Arab Emirates, Saudi Arabia, and Qatar have strategically combined vast financial resources with an influx of international expertise.
“What they’ve done is to create talented people,” Dalio said, adding that the region is “becoming a Silicon Valley of capitalists.”
For him, the attraction lies in the unique blend of stability, leadership, and ambition that makes the Gulf a magnet for innovators and investors.
He described the UAE as “a paradise in a world that’s troubled,” underscoring its appeal as a safe and forward-looking environment.
Recent developments justify Dalio’s view on the Middle East
Importantly, the Gulf’s ambitions are already backed by concrete projects.
Saudi Arabia’s Public Investment Fund (PIF) recently announced a $10 billion partnership with Google Cloud to establish a global AI hub, ensuring that data centers and workloads are hosted locally.
Meanwhile, the UAE has welcomed a consortium of tech giants – including OpenAI, Oracle, Nvidia, and Cisco – to build the Stargate AI campus, a facility designed to accelerate research and deployment of advanced systems.
These initiatives reflect the region’s determination to become indispensable in the global AI supply chain.
By combining sovereign wealth capital with partnerships from leading tech firms, the Middle East is laying the groundwork for a sustainable and competitive artificial intelligence ecosystem.
Middle East: a deliberate bet on the future
Ray Dalio’s remarks highlight a broader narrative: the Gulf states are positioning themselves as indispensable players in the next wave of technological disruption.
With strong leadership, deep pockets, and a clear vision, the region is cultivating an environment that rivals traditional tech hubs.
“There’s a buzz here, the way there’s a buzz in San Francisco,” Dalio observed – pointing to the palpable energy surrounding AI innovation.
For investors, the message is clear: ignoring the Middle East’s rise could mean missing out on one of the most significant opportunities of the coming decade.
The transformation signals a generational shift, where Gulf nations leverage vision, capital, and global partnerships to redefine innovation, positioning themselves as indispensable players in tomorrow’s AI-driven economy.
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