The Impact of the Iran War on the Gulf’s Grand AI Plans
When Iranian drone strikes hit two of Amazon’s data centers in the United Arab Emirates and Bahrain in early March, amid the ongoing US-Israeli war with Iran, much of the media’s reflex was to declare it the end of the Gulf’s artificial intelligence (AI) ambitions. That read is misguided, and it misses why what Iran was trying to accomplish failed.
The Gulf states are betting big on artificial intelligence (AI). Their motive is simple: While hydrocarbons will remain part of the energy mix for the foreseeable future, the revenue and influence tied to crude are already beginning to diminish. AI is not just about technology; it is a hedge, and potentially a new foundation for sustaining and even increasing their power in the rapidly shifting world order.
The United States is Israel’s closest ally, and its support is a central pillar of Israel’s national security. The US provides Israel access to purchase advanced weapon systems, ammunition and weapon emergency supplies in times of war, intelligence sharing, opportunities for cooperation in defense technology, and crucial diplomatic cover at the UN Security Council and elsewhere. It also provides Israel with regular security aid, to be spent in the United States, currently at an annual rate of $3.8bn (under an MOU that expires in 2028). Since October 2023, the US also offered active military support, in a break from the historical norm. It contributed substantially to Israel’s defense against Iranian ballistic missiles, in conjunction with Arab regional partners, and bombed nuclear sites in Iran in support of Israel’s campaign in the “12 Day War” of June 2025.
In this week’s Monday Briefing, MEI experts Randa Slim, Robert S. Ford, Marvin G. Weinbaum, James P. Farwell, Emadeddin Badi, Guney Yildiz, and Jean-François Seznec provide analysis on recent and upcoming events including Iranian President Hassan Rouhani’s visit to Baghdad, reconstruction efforts in Syria, the crackdown on militant Islamists in Pakistan, Iran’s cyber attack capabilities, upcoming elections in Libya, Turkish-Egyptian tensions, and Qatar’s $12B loan from bond markets.
Is the traditional view that U.S. leadership in the Middle East advances our strategic interests well judged? As president, Barack Obama upended many assumptions about that view. He turned heads in dismissing Saudi Arabia as a “so-called ally” and reached out to Iran, hoping to make it less dangerous.
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The oldest peer-reviewed publication dedicated to the study of the modern Middle East, MEI’s flagship journal covers politics, society, and culture in the region.
