Saudi Arabia, UAE, and Oman Are At the Forefront of SME Transformation

Happy Monday!

The AI landscape is evolving rapidly, and DeepSeek AI is at the forefront of this transformation. The company’s cutting-edge generative AI is reshaping how businesses and individuals interact with data, automation, and decision-making tools. As global players like Alibaba and OpenAI push the boundaries of generative AI, DeepSeek’s approach is setting new benchmarks in machine learning and natural language processing.

Stay tuned as we explore the impact of AI-driven intelligence on digital economies and enterprise transformation in the next issue of The Digital Bridge.

This week’s highlights include:

• Fueling Tech: How Saudi Arabia, UAE, and Oman Are Driving an SME Transformation

  Vision2030: Saudi Arabia’s Revolutionizing Sustainability with Vision 2030

• Climate Tech: Local Governments Strengthen Disaster Readiness with Advanced Climate Data

• Tech Spotlight: DeepSeek AI Gains Traction as Alibaba and ChatGPT Introduce New Models

• Fun-Tech: Middle East Tech Leaders Showcase the Trending Trends of 2025

FUELING TECH
How Saudi Arabia, UAE, and Oman Are Driving an SME Transformation

Across the Gulf Cooperation Council (GCC) countries, small and medium enterprises (SMEs) play a key role in driving economic growth. As these businesses are vital to GDP and job creation, embracing digital transformation has become essential. Saudi Arabia, the UAE, and Oman are at the forefront of this change, utilizing technologies like artificial intelligence (AI), cloud computing, and fintech to support their SME sectors. With large-scale government initiatives and substantial investments, these nations are shaping the region into a global center for AI-led entrepreneurship.

Saudi Arabia stands out with its $40 billion AI investment fund and initiatives like the National Technology Development Program (NTDP), which has allocated over half a billion dollars to enhance AI adoption and improve ICT productivity. The Saudi Data and AI Authority (SDAIA) and Monshaat provide businesses with funding, training, and regulatory assistance to integrate AI. Meanwhile, Dubai is focused on empowering 20,000 small businesses through digital tools and support, while Oman’s Vision 2040 is pushing digital innovation to drive SME productivity and economic diversification.

The UAE has launched the National AI Strategy 2031 to foster investments in AI and support innovation hubs like Dubai Future Accelerators. The MGX Fund, expected to surpass $100 billion, is another significant effort aimed at boosting AI-driven SME growth. Similarly, Oman is prioritizing AI adoption with the 2024 launch of its National Program for AI and Advanced Digital Technologies, while the Oman Technology Fund (OTF) supports SMEs in sectors such as AI, blockchain, and cloud computing.

Other GCC nations like Qatar, Bahrain, and Kuwait are also making strides. Qatar is expanding AI data centers to improve cloud access, Bahrain is partnering with IBM on AI-driven cybersecurity solutions, and Kuwait is developing AI-based economic strategies to strengthen its SME sector.

Global partnerships are crucial to accelerating digital growth in the region. For example, Microsoft is collaborating with Saudi Arabia to enhance AI capabilities alongside Saudi Aramco, while Google Cloud and AWS are helping foster AI-driven SMEs in Qatar and the UAE, respectively. Oracle is supporting Oman’s digital infrastructure for automation and enterprise AI solutions.

Key areas where digitalization is transforming SMEs in the GCC include AI-powered financial services, e-commerce platforms like Noon and Amazon UAE, enhanced cybersecurity measures, AI-driven manufacturing, and smart logistics systems for optimized supply chains.

Overall, these digital initiatives are empowering the SME sector across the GCC, creating new opportunities for innovation, business growth, and economic diversification.

VISION 2030
Saudi Arabia’s Revolutionizing Sustainability with Vision 2030

Saudi Arabia is making a dramatic shift towards sustainability, transforming its arid landscapes into flourishing green areas. The country’s Vision 2030 is not just a blueprint; it's a groundbreaking strategy for sustainability, economic progress, and technological innovation. Key industry figures like Daniel Nikic, founder of Cohres, see Saudi Arabia’s approach as setting a global standard in sustainable development.

The Saudi Green Initiative (SGI) is leading this transformation, with ambitious goals such as reducing carbon emissions by 278 million tonnes annually, planting 10 billion trees, and conserving 30% of the country’s land and marine environments. Early results are already promising—by 2022, Saudi Arabia had planted 18 million trees and rehabilitated 60,000 hectares of land.

Nikic emphasizes,

Investing in Renewable Energy

Saudi Arabia is also making major progress in renewable energy. By 2030, the kingdom aims for 50% of its energy mix to come from renewable sources. The Public Investment Fund (PIF) is supporting solar and wind initiatives, positioning Saudi Arabia as a leader in green finance and sustainable energy development.

CLIMATE TECH
Local Governments Strengthen Disaster Readiness with Advanced Climate Data

Disaster preparedness is evolving with cutting-edge climate insights, thanks to a collaboration between the federal government and AT&T. This initiative equips local officials with advanced climate data, enabling them to anticipate and mitigate extreme weather risks.

Recent events like Hurricane Helene in North Carolina and California’s ongoing wildfires highlight the pressing need for proactive climate resilience strategies. In response, FEMA, Argonne National Laboratory, and AT&T introduced ClimRR, a comprehensive climate risk assessment tool. Since its launch in 2022, state and local governments have been utilizing ClimRR’s predictive analytics to enhance emergency management strategies.

Kentucky’s Barren River Area Development District (BRADD), which has faced tornadoes, flooding, and even sinkholes, leveraged ClimRR data to refine its hazard mitigation plans. Free consulting and climate modeling support have empowered BRADD to build a more resilient future. Beyond bolstering preparedness, ClimRR is also reshaping perceptions of climate change. Eric Sexton, BRADD’s Executive Director, emphasized that local leaders are now making more data-driven decisions and recognizing the direct connection between climate change and natural disasters.

As more communities integrate climate intelligence into their planning, they strengthen their ability to safeguard lives, infrastructure, and economies against future climate threats.

TECH SPOTLIGHT
DeepSeek AI Gains Traction as Alibaba and ChatGPT Introduce New Models

The race in artificial intelligence is intensifying, with DeepSeek, a Chinese startup, shaking things up by launching an AI model that rivals major U.S. tech companies like OpenAI and Meta at a fraction of the cost. The company claims its DeepSeek-V3 model costs under $6 million to train, a significant contrast to the $100 million spent by OpenAI on its latest ChatGPT model.

DeepSeek’s announcement led to a historic one-day loss in Nvidia’s stock, although it has since rebounded. DeepSeek’s model uses less advanced chips, which makes it 20 to 50 times more affordable to operate compared to the massive investments in AI by U.S. firms. Additionally, the company’s open-source AI has surged in popularity, topping the Apple App Store’s Top Free Apps chart and surpassing ChatGPT and Google in downloads.

Founded in 2023, DeepSeek offers AI models, including DeepSeek-V3 and DeepSeek-R1, which the company claims rival or even surpass the sophistication of popular U.S. models. In response to the growing competition, Alibaba introduced its own AI model, Qwen 2.5, claiming it outperforms DeepSeek. OpenAI, not to be outdone, recently launched ChatGPT Gov, a tool tailored for government agencies. However, DeepSeek’s rapid rise has not been without challenges.

The company is facing scrutiny after reports surfaced that it used OpenAI’s model to train its own AI. Additionally, DeepSeek’s chatbot was found to provide inaccurate and vague responses, with an 83% failure rate for delivering reliable information. The company has also dealt with cyberattacks, temporarily halting user registrations. Given its Chinese origins, the AI’s security and privacy implications are raising concerns similar to those faced by platforms like TikTok.

As competition among AI giants heats up, DeepSeek’s disruptive approach is causing waves, while both Alibaba and OpenAI continue to push their own advancements in the sector.

FUN-TECH
Microsoft’s Data Centers Will Recycle Water for Cooling

Tech giants are making sustainability a priority, and Microsoft is leading the charge with a new water recycling system for its data centers. Starting in 2026, Microsoft’s facilities in Arizona and Wisconsin will cool servers using a closed-loop system—meaning the same water will be used repeatedly instead of being wasted. This shift is expected to save more than 125 million liters of water annually per data center.

Traditionally, data centers rely on evaporative cooling, which consumes significant amounts of fresh water. Microsoft’s solution not only conserves water but also aligns with broader efforts to minimize resource consumption in tech infrastructure. However, existing data centers will continue using current cooling methods. Microsoft’s VP of Data Infrastructure Engineering, Steve Solomon, acknowledged that there are no immediate plans to retrofit older facilities with this system.

That said, the company is actively working to improve its overall water efficiency while also investing in carbon-free electricity solutions to power its operations. This move is part of a larger trend in sustainable tech, where companies are rethinking how they design and operate critical infrastructure.

With innovations like this, the future of data centers looks not just more efficient, but also more environmentally responsi

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