Pragmatic AI sovereignty

Architecting AI value chains for control and continuity in the Gulf countries

(PDF of 3.42MB)

Viewpoint | August 2026 |

Often, the quest to achieve leadership in the global competition that has arisen around artificial intelligence (AI) is reduced to seeking access to chips. But chips are only one component of the AI value chain. To attain a leadership position in AI, countries in the Gulf Cooperation Council (GCC) and beyond must adopt a more nuanced approach that encompasses the entire AI value chain, including chips, compute infrastructure, cloud platforms, models, data and other elements.

We call this pragmatic AI sovereignty. It seeks to balance the need for control over the AI value chain with the need for continuous access to its components. In doing so, pragmatic AI sovereignty mitigates the risks of both external dependence and internal fragility.

There is no single way to achieve pragmatic AI sovereignty. Government leaders and other stakeholders must consider each aspect of the value chain in terms of its concentration, capital intensity, strategic sensitivity and value creation potential.

Then, leaders can determine which posture or combination of postures can be used to secure access to the layers of value. There are four postures they can use: assure, which secures a layer via agreements, allocation, diversification or contractual safeguards; control, which secures a layer by owning, operating or governing it; partner, which secures a layer via partnership with a global player while maintaining local governance, localization, resilience and exit rights; and influence, which secures a layer using capital, regulation, procurement or market access to shape its standards, capital flows, supplier priorities or policy dialogues.

The GCC countries are well positioned to not only secure their own pragmatic AI sovereignty, but also shape how AI ecosystems evolve across adjacent markets. To succeed and lead in the AI era, they will secure access where it matters, assert control where it is critical and build leadership where value can be captured.

Formulating a plan capable of achieving pragmatic AI sovereignty is an important starting point for GCC governments. The greater challenge lies in execution.

To achieve pragmatic AI sovereignty, stakeholders must be aligned in pursuit of a coherent AI agenda. Governments will need to set the rules and aggregate demand. Sovereign wealth funds will need to secure access and wield influence. National champions will need to build and operate critical infrastructure. Government entities and national champions will have to create data and use cases, too.

To meet this challenge, GCC governments must forge robust strategic technology partnerships; empower national champions; wield sovereign capital to secure access and influence; and build and nurture local AI production and deployment ecosystems. Moreover, they will need to recognize that pragmatic AI sovereignty is not a one-and-done effort. It is going to be a continual exercise in managing dependency, control and influence in an increasingly contested technological landscape.

For GCC countries, the AI opportunity is significant. Given their capital strength, strategic geography and growing digital ambition, they are well positioned to not only secure their own pragmatic sovereignty, but also shape how AI ecosystems evolve across adjacent markets. The GCC countries that succeed and lead in the AI era will not be those that attempt to own the entire AI value chain. The leaders will be those that secure access where it matters, assert control where it is critical and build leadership where value can be captured.