Nov 10, 2025

Why Sovereign AI is a Test of National Autonomy

Meet the expert

Zeeshan Mehdi

Engineering Director - Middle East

What's Trending

Sovereign AI is a geopolitical imperative. But is it truly sovereign if foreign vendors still hold the keys?

Sovereign AI is a paradigm shift in how nations approach AI on their own terms, with domestic data, infrastructure, and talent. It's now the policy anchor for innovation across the Gulf.

For example, Saudi Arabia's 77-billion-dollar HUMAIN project and the UAE's Stargate and G42 initiatives are building national AI factories, Arabic language models, and sovereign compute clusters.

The Gulf countries are rapidly investing in large language models (LLMs) as part of national AI strategies to advance sovereign AI, economic diversification for the Arabic-speaking local populus, and technological independence. The UAE and Saudi Arabia lead the development with flagship models such as:

Falcon by TII
Jais
K2 developed by G42 and MBZUAI
ALLam and Mulhem by Saudi initiatives HUMAIN and SDAIA
Qatar's Fanar model, developed by QCRI

These models master the Arabic language, ensure data sovereignty, and reflect cultural values, filling gaps left by global models. They are part of a broader regional commitment to creating sovereign AI capabilities, supported by major investments in high-performance computing, data infrastructure, and talent development.

The GCC's LLM journey exemplifies a hands-on, build-it-yourself approach to technological independence, blending ambition with experimentation and strategic partnerships.

of executives now consider owning their data and AI platforms mission-critical.
EnterpriseDB’s 2025 survey

Market Disruption or Hype

NVIDIA’s $5 billion investment in Intel’s AI chip and data center expansion underscores the urgency of sovereign infrastructure. It’s a signal that the race for compute sovereignty is accelerating — and that nations and vendors alike are betting big on local control.

Vendors have responded with sovereign cloud solutions, and NVIDIA's CEO said every nation will require its own AI. While the trend is certainly real, driven by regulation and localization needs, there’s also an element of hype.

True sovereignty means a country controls its own data, compute, and models, rather than relying on vendor-controlled local platforms that perpetuate external dependence. Clearly, AI sovereignty is a top priority for many countries, as it’s expected to positively impact their future GDP.

WHY IT MATTERS

While most discussions focus on infrastructure and investment, true AI sovereignty goes deeper into ethics, sustainability, and autonomy. According to the leading global think tank Atlantic Council, real sovereignty is built on:

Legality
Competitiveness
National defense
Shared values

These four pillars demand massive energy, water resources, and public trust.

Detractors believe “sovereignty as a service” undermines autonomy when foreign companies set up local AI centers but continue to train private models over local data. The same note writers who construct local datasets may be replaced by those models.

In the race for sovereign AI, sloppy governance could be the Achilles’ heel. Without transparency, sovereignty becomes a slogan — not a safeguard.

Limiting rhetoric about nationalism reduces regional cooperation and weakens shared values. Sovereign AI should be assessed on computer strength and how well it:

Protects citizen data
Enhances skills
Delivers true social and economic value

WHAT’S BEING OVERLOOKED

Two things: Data sovereignty and talent cultivation.

In the Middle East, data sovereignty is now a main requirement for all digital activities. Organizations are designing hybrid infrastructures, integrating heterogeneous data systems, and using open technologies to prevent lock-in. The UAE sovereign cloud agreement with Microsoft and G42 shows how governments can modernize without sacrificing sensitive data under domestic control.

Talent cultivation is also important. Saudi Arabia's goal of building 20,000 AI professionals by 2030 is to reduce dependence on external capabilities. Customers are now setting up AI governance, harmonizing frameworks with regional regulation, and embedding sovereignty principles in corporate strategy. Those who effectively balance compliance, innovation, and cultural context will benefit the most in the long term.

OPPORTUNITIES

Strong government backing and enormous investments in AI across the GCC.
Billions spent on sovereign clouds, data centers, and multilingual foundation models.
UAE and Saudi Arabia have installed 10 supercomputers and plan to develop nearly two gigawatts of data center capacity by 2030.
Strategic advantages due to access to energy, location, and visionary leadership.
Innovative agile governance methods and partnerships with the private sector.

HURDLES

Complexity of projects due to stringent governance, high compute costs, and security challenges.
Lack of specialized expertise to manage and upgrade sophisticated models.
Upgrading models requires hundreds of millions of dollars and precious expertise.
Export controls on sophisticated chips limit access to new hardware.
Need to support sustainability, transparency, and trust for short/long-term success.

Gulf countries are well-suited to deliver on these challenges due to their innovative governance and strong partnerships with the private sector.

SOFTSERVE’S APPROACH

SoftServe has been based in the Middle East since 2018 and has participated in the UAE Ministry of Economy's NextGenFDI program since 2023 to catalyze knowledge-fueled growth.

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