Despite talk of AI bubble, Gulf nations maximizing its use, says expert

In Saudi Arabia they have introduced AI to all aspects of society. (FILE/AFP)
Short Url
Updated 13 October 2025
Follow

Despite talk of AI bubble, Gulf nations maximizing its use, says expert

  • AI helping in Saudi World Cup stadium design, says Steven Schain
  • Gulf is investing properly, unlike those that have ‘wasted’ millions

NASHVILLE, USA: Companies have blindly invested in artificial intelligence before establishing their actual needs, which has led to millions of dollars being “wasted,” a leading expert has told Arab News.

A recent survey revealed that sentiment in AI technology had dropped in the Middle East as companies began to realize they had onboarded the technology without first establishing its role within their organizations.

But in projects such as the design of Saudi Arabia’s 2034 World Cup stadiums, the technology was being put to good use, including how to give the perfect view from every seat. This is something many football clubs around the globe will admit has not been previously achieved.

Depending on who you listen to, the AI bubble is either about to burst or diversify.

Journalist Will Lockett wrote in Medium.com on Sept. 15 that the “AI bubble is ripe for bursting,” adding that the “AI models we have now are about as good as they will ever be.”

But Amazon founder Jeff Bezo took a more optimistic line, CNBC reported last week, saying the “technology is real” and would bring “big benefits to society.”

It is a view shared by Steven Schain, founder of AI Performance Partners, who speaking on the sidelines of the recent Autodesk University 2025 in Nashville.

Schain said Gulf nations were adopting the correct approach by properly training organizations and individuals in using AI.

Officials in Saudi Arabia and the UAE have said in recent months that they plan to invest heavily in AI training and education.

Schain said that if sentiment in AI had dropped, it was an indication that it was being overused in the first place. “What is happening now is that there is a more refined use of AI,” he said.

He added: “The design and building of the Saudi World Cup stadiums is being enhanced as a result.

“Because basically, rather than people messing around with AI, these guys are able to go and look at different stadiums and design the ultimate stadiums so that, for once, every single seat has the perfect view; they’re still doing the research work.”

There has been a slight decline in the region’s enthusiasm for the technology but the outcome has been quite positive, he added.

“From what I’ve seen, people are starting to finally realize what AI can do in their companies.”

He said that previously the view among certain firms had been to invest large amounts of money and working hours into AI without having any real direction to their approach.

And now “a lot of people are realizing they wasted a lot of time and money.”

“So what’s happening is now these companies are taking a step backwards and looking at where it fits.”

He said companies were starting to say: “‘We just did this all wrong. We put it out there too fast. We’ve wasted time, we wasted all this money.’”

Instead, Schain said, business chiefs were beginning to create teams of people that understand AI — ultimately saving time and potentially millions of dollars.

With any research there is a cost, but Schain said the Gulf was the perfect place because of its wealth.

“AI is a great tool because you can do 10 times the amount of work within the same amount of time. And you can solve problems that you would have never thought of.”

Schain said this was what was happening with AI in design.

“It’s coming up with concepts and ideas that an engineer or a product designer or architect would never have thought of, or not had the time to think of.”

As AI is developed, especially by companies such as Autodesk, he said the process of design to production and build had the potential to become more cost efficient.

Technology such as 3D imaging, made possible through AI, would help take a one-dimensional image from an idea on paper to its creation. AI was also useful for quality control.

He did not believe this would lead to widespread job losses. People would have to adapt and there would always be a role for them.

In the US alone there was a need for 500,000 new jobs in the trade professions over the next 10 years.

“AI can’t replace those jobs ... physical labor,  such as plumbers, electricians, welders. Those are jobs that AI is not taking.”

Instead he said the first jobs starting to go are white collar roles such as programmers, artists and concept designers — those in conceptual fields and visual arts.


Four alliances win Saudi mining licenses as mineral belts expand 

Updated 31 min 19 sec ago
Follow

Four alliances win Saudi mining licenses as mineral belts expand 

RIYADH: While four major consortia won exploration licenses in the eighth round of Saudi Arabia’s mining competition — the first to cover mineralized belts with unprecedented areas — the Ministry of Industry and Mineral Resources has revealed details of the next round, which will be significantly larger, according to Vice Minister for Mining Affairs Khalid Al-Mudaifer, who spoke to Al-Eqtisadiah.

Speaking at the handover ceremony for the eighth-round licenses in Riyadh, Al-Mudaifer said the ninth round will cover 13,000 sq. km and will follow a different mechanism from previous rounds. The ministry will announce full details once technical and regulatory procedures are completed. 

He noted that the eighth round attracted strong interest, with 18 companies applying, 12 qualifying, and 13 partnerships formed, before four major alliances ultimately secured licenses.  

These included Al-Ajlan’s alliance with Chinese company Norin, Al-Ajlan’s alliance with Zijin Mining, one of the world’s largest mining firms and the third-largest producer of gold and copper, the Al-Rashed's ARTAR alliance with Australia’s Hancock Prospecting, a leading global mining investor, and the multinational Vedanta, registered in the UK and India. 

According to Al-Mudaifer, the eighth round covered 4,700 sq. km, while the ninth will span 25,000 sq. km. The upcoming tenth round will cover 13,000 sq. km, with plots allocated to investors starting from 1,000 sq. Km. 

He added that Saudi Arabia has made significant progress in the mining sector since the launch of Vision 2030, following government directives to establish mining as the third pillar of the Kingdom’s industrial base. The ministry has since implemented long-term plans to build a sector capable of attracting global investment and strengthening the national resource economy. 

Al-Mudaifer noted that the number of companies operating in the sector has increased from 3 to 226, with 66 percent of them being foreign firms in the large and medium categories.  

This growth, he said, reflects the strength of Saudi Arabia’s investment environment following improvements to the licensing competition system, streamlined permit procedures, clearer programs and policies, and the strengthening of social programs linked to mining activities as part of corporate responsibility. 

He said the ministry did not focus solely on regulatory aspects in the eighth exploration round but also emphasized social programs connected to mining activity, treating them as a core element of companies’ responsibilities. He noted that earlier licensing rounds offered limited areas not exceeding 100 sq. km per license. 

Al-Mudaifer added: “The transformations in the sector and the demands of global investors have led to the expansion of the areas offered for exploration, especially since Saudi Arabia possesses huge resources whose quantities have not yet been accurately determined. Accordingly, a generous decision was issued enabling the Ministry to manage the ‘mineral belts,’ which opened the way for launching licensing rounds with much larger areas.” 

He explained that the first rounds of licensing were restricted to no more than 100 sq. km per license, but engagement with international and local companies made clear their need for larger plots to support major exploration investments, especially given the Kingdom’s vast yet-to-be-quantified resource potential. 

He pointed out that this need prompted the development of new mechanisms, including a decision authorizing the ministry to manage mineralized belts — “a turning point,” he said, that allowed the launch of large-area rounds.  

These include the eighth round at 4,700 sq. km, the ninth at 25,000 sq. km, and the upcoming tenth round at around 13,000 sq. km, with allocations to investors starting from 1,000 sq. km and above.