Qatar has launched a national artificial intelligence company, Qai, as the Gulf state ramps up efforts to transition its energy-dependent economy into a high-tech regional hub. The move aims to transform government services with AI, and supercharge ongoing smart city projects.

The new entity, a subsidiary of the $524 billion Qatar Investment Authority (QIA), will invest in and operate AI infrastructure both domestically and internationally. The move follows similar multi-billion dollar “national champion” initiatives by regional neighbours Saudi Arabia and the United Arab Emirates, as Gulf states compete to secure advanced semiconductors and global tech partnerships.

For Qatar, the world’s leading exporter of liquefied natural gas (LNG), the push into AI is a strategic pillar of its “National Vision 2030.” Beyond high-level research, Doha is betting on AI to automate government services and power smart cities like Lusail and Msheireb Downtown Doha. These urban centres are designed to use predictive analytics and autonomous systems to manage traffic, energy consumption, and public safety.

“AI is not merely a technological option; it is a strategic necessity,” said Abdulla Al Misnad, Chairman of Qai, during the World Summit AI in Doha. He noted that the firm will focus on developing “trusted” AI systems and autonomous agents, acting as a bridge between international research and local application.

The pivot toward automation comes as Qatar seeks to insulate itself from the volatility of global energy markets. While the hydrocarbon sector continues to account for nearly 90% of government revenue, the state’s Third National Development Strategy aims for a 4% annual growth in non-hydrocarbon GDP. By integrating AI into logistics at Hamad Port and streamlining bureaucratic processes, officials hope to create 26,000 new specialised ICT jobs by the end of the decade.

Qatar currently holds the world’s third-largest natural gas reserves. Hydrocarbons traditionally comprise roughly two-thirds of total exports. The North Field expansion project is set to boost Qatar’s LNG production capacity by nearly 50%, reaching 126 million tons per annum by 2027.

However, due to progress with the state’s diversification efforts, non-hydrocarbon activities, led by tourism, construction, and financial services, now account for over 65% of real GDP as of 2025.