Gulf tech investment shifts toward Asia and AI infrastructure

Venture capital firms in Qatar are increasingly looking toward Asia and Turkey for technology investments, citing lower valuations and higher potential returns compared to Silicon Valley. Soumaya Ben Beya Dridje, a partner at Rasmal Ventures, noted that while the US leads in innovation, market saturation makes it difficult to secure favorable deals. The firm, backed by the Qatar Investment Authority, has already invested in companies such as the Turkish-led Roamless and the Hong Kong-based Nexx.

Simultaneously, the Gulf Cooperation Council (GCC) is making a massive push into artificial intelligence and data center infrastructure. While the region currently holds a small fraction of global data center capacity, a significant portion of the world's capacity is now under construction or planned within the region. However, this expansion brings strategic risks, including technological dependence on foreign hardware and semiconductors, potential vulnerabilities in critical digital infrastructure, and high water consumption requirements for cooling facilities in arid environments.