AI is Powering Economic Growth and Digital Sovereignty Across the Middle East

Mohammed Hilili, General Manager of Lenovo Gulf, discusses how AI is driving real-world economic growth, reshaping global competition, and fueling the Middle East’s vision for data sovereignty. From national AI strategies to sovereign infrastructure partnerships, he shares Lenovo’s pivotal role in building an intelligent, self-reliant digital future.

From Lenovo’s perspective, what are some of the most compelling real-world enterprise use cases for AI that are actively driving economic growth today?
At Lenovo, we see AI as a transformative force across industries, and our Hybrid AI Advantage is helping enterprises unlock tangible business outcomes. In the Middle East, particularly the UAE, organizations are rapidly adopting AI to drive operational efficiency, customer engagement, and innovation.

For example, e& has worked with Lenovo to deliver cutting-edge AI-powered edge computing solutions that support the rapid deployment of 5G services across the UAE. This collaboration is part of a broader initiative to enable enterprises to offer next-generation digital experiences, including augmented reality, autonomous vehicles, and predictive maintenance.

The solution enables e& to deliver on customer expectations for secure, high-performance edge services. This is especially relevant in the UAE, where smart city initiatives and Industry 4.0 deployments are accelerating. The edge computing infrastructure supports real-time data processing at the network edge, reducing latency and improving responsiveness for applications in IoT, smart infrastructure, and digital services.

Another project driving economic development is Lenovo’s partnership with Al Hathboor Bikal.ai at the Sharjah Research Technology and Innovation Park (SRTIP), where a high-performance computing (HPC) cluster has been deployed to support AI innovation across sectors. This infrastructure powers DialogXR, a locally trained large language model (LLM) designed for UAE enterprises, enabling multilingual customer service, automated workflows, and full data sovereignty, critical for regulated industries and government entities.

By making advanced AI capabilities accessible to startups, SMEs, and academic institutions, the initiative lowers barriers to innovation and fosters inclusive growth. It also supports use cases in citizen safety, healthcare diagnostics, and smart infrastructure, aligning with the UAE’s AI Strategy 2031. Additionally, the project contributes to sustainability goals through Lenovo’s Neptune™ liquid cooling technology, reducing data center energy consumption by up to 40%, and creates high-skilled jobs in AI and data science, reinforcing the UAE’s transition toward a knowledge-based economy.

Beyond the private sector, how are governments leveraging AI in their deployments, and what impact is this having on the broader AI economy?
Governments across the Middle East, particularly in the UAE and Saudi Arabia, are playing a pivotal role in shaping the AI economy, not just through policy, but through large-scale deployments that are driving innovation, productivity, and economic growth.

In the UAE, the government’s proactive approach is anchored in the UAE National Strategy for Artificial Intelligence 2031, which aims to make the country a global leader in AI by integrating it across sectors such as healthcare, education, energy, and transportation. The strategy is already yielding results: AI is projected to contribute up to 14% of the UAE’s GDP by 2030, equivalent to approximately $100 billion.

Government-led initiatives like the Dubai Centre for Artificial Intelligence (DCAI) have launched over 75 pilot projects across 33 entities, showcasing real-world applications in personalized healthcare, logistics, customs security, and citizen services. These deployments not only improve public service delivery but also stimulate the broader AI ecosystem by attracting startups, talent, and foreign investment.

In Saudi Arabia, the government has embedded AI into its Vision 2030 strategy, with institutions like the Saudi Data and Artificial Intelligence Authority (SDAIA) and the Ministry of Communications and Information Technology (MCIT) leading the charge. According to a World Bank-supported study, AI-related activities already contribute to 2.3% of GDP in advanced tech sectors, and under a moderate growth scenario, AI could boost GDP by 0.6% above baseline by 2030.

Moreover, while automation may displace some jobs, the net employment impact is projected to be positive, with 23% job creation offsetting 20.5% displacement, resulting in a 2.5% net employment gain. These government efforts are not just about technology, they’re about economic transformation.

By investing in AI infrastructure, education, and ethical governance, both the UAE and Saudi Arabia are positioning themselves as regional AI powerhouses, catalyzing new industries, enhancing public sector efficiency, and creating high-value jobs. The ripple effect is a thriving AI economy that benefits both the private and public sectors, reinforcing the Middle East’s strategic role in the global AI landscape.

The concept of ‘AI-driven supremacy’ is gaining traction. How do you see this influencing global competition and capital realignments in the technology sector?
The rise of AI-driven supremacy is fundamentally reshaping global competition and triggering significant capital realignments across the technology sector. As nations and enterprises race to harness the strategic advantages of AI, we’re seeing a shift from traditional IT investments toward AI infrastructure, sovereign data platforms, and edge computing ecosystems. This is not just a technological evolution, it’s an economical one.

Lenovo responded to this shift by investing over $1 billion in AI infrastructure and services, including the development of AI-ready data centers, edge solutions, and validated AI use cases across industries. Our partnerships with global technology leaders such as NVIDIA, Intel, and Microsoft, alongside regional innovators like Al Hathboor Bikal.ai in the UAE and Alat in Saudi Arabia, underscore Lenovo’s commitment to a globally integrated yet locally empowered AI strategy. These collaborations are helping countries build sovereign AI capabilities, reduce dependency on foreign platforms, and stimulate domestic tech ecosystems.

In the Middle East, this trend is particularly pronounced. Governments are positioning AI as a pillar of national competitiveness, with initiatives like the UAE’s AI Strategy 2031 and Saudi Arabia’s Vision 2030 driving massive investments in AI infrastructure, education, and regulation. Lenovo’s role in these ecosystems, whether through HPC clusters in Sharjah or manufacturing hubs in Riyadh, is to provide the foundational technology that enables nations to compete globally while retaining control over their data and digital futures.

Given the strategic race for semiconductors, how is Lenovo navigating supply chain complexities and ensuring access to the advanced chips necessary for its AI solutions?
Lenovo is navigating supply chain complexities with a proactive, multi-layered approach that reflects our global scale and local agility. Our hybrid manufacturing model, spanning over 30 facilities worldwide, enables us to balance global efficiency with regional responsiveness. This structure allows us to respond swiftly to market shifts and ensure continuity in delivering advanced AI solutions.

We’ve built a resilient supply chain by diversifying our supplier base and deepening strategic partnerships with leading semiconductor providers. This ensures access to the latest chip technologies, from high-performance GPUs to specialized AI accelerators, which are critical to powering our intelligent devices and infrastructure.
Lenovo’s global/local model is a key differentiator.

We operate with a ‘global backbone, local execution’ philosophy, leveraging centralized planning and innovation while empowering regional teams to adapt to local market dynamics. This includes localized sourcing, regional manufacturing, and tailored logistics strategies that enhance flexibility and reduce lead times.

Furthermore, we’re investing in AI-driven supply chain orchestration to improve demand forecasting, optimize inventory, and enhance visibility across our ecosystem. These capabilities not only strengthen our operational resilience but also enable us to deliver smarter, more sustainable technology solutions at scale.

Regionally, Lenovo is strengthening supply chain resilience through its $2 billion partnership with Alat in Saudi Arabia, where a new manufacturing hub in Riyadh will produce “Saudi Made” laptops, desktops, and servers. This facility, located within the Special Integrated Logistics Zone (SILZ), will serve as a strategic base for AI infrastructure production and distribution across the Middle East and Africa, reducing lead times and enhancing service delivery.

How crucial is digital sovereignty in the context of AI development and deployment, particularly for nations aiming to control their data and technological future?
Digital sovereignty is a strategic requirement in the age of AI. It empowers nations to maintain control over their data, infrastructure, and technological direction, ensuring that AI systems are developed and deployed in ways that align with local values, regulations, and economic priorities.

Lenovo emphasizes that data sovereignty is one of the top three success factors for AI projects, alongside compliance and data quality. Without sovereign control, nations risk relying on external infrastructures that may not guarantee data privacy, ethical standards, or operational transparency. This can lead to vulnerabilities in national security, economic independence, and public trust.

To address this, Lenovo supports a model of “Sovereign Data for Sovereign AI,” advocating for AI systems that are built on locally governed data and infrastructure. This approach allows countries to tailor AI solutions to their unique societal needs, whether it’s language, culture, or regulatory frameworks, while also fostering innovation and resilience.

Lenovo’s internal governance, through its Responsible AI Committee, ensures that all AI applications meet rigorous ethical and legal standards. Lenovo also collaborates with global organizations to promote ethical AI, recognizing that sovereignty must coexist with international cooperation.