Read the June 2025 MEED Business Review

Gulf accelerates AI and data centre strategy; Baghdad keeps up project spending, but fiscal clouds gather; Banking stocks rise despite lower global oil prices

The GCC states are playing an increasingly important role in developing future technologies. Governments are accelerating their artificial intelligence (AI) and data centre strategies and the region now boasts a compelling combination of low-cost energy, advanced infrastructure and decisive policy support, positioning it as a hub for data-driven innovation.

The region is rapidly scaling up its data centre capacity. As of May, there were more than $78bn-worth of planned data centre construction projects, according to regional projects tracker MEED Projects, with a further $680m in active bids and $6.5bn already under construction.

With digital infrastructure investments hitting an all-time high, Saudi Arabia and the UAE are overhauling their electricity systems in line with their energy diversification, economic expansion and net-zero targets, as they strive to secure national competitiveness in the AI economy.

The June edition of MEED Business Review explores the implications of this rapid growth in data centre investment, and what it means for the long-term technological leadership of the Gulf states in the fields of digital innovation and AI.

MEED’s latest issue also includes a 13-page market report on Iraq, which is facing economic challenges as lower oil prices threaten Baghdad’s spending plans. While the country’s oil, gas and chemicals project market has surged to its highest value in a decade and the revival of a Syrian oil export route could provide a large economic boost, Baghdad is spending heavily on housing and infrastructure construction projects, and on its efforts to address the country’s significant power deficit. The hope is that the strong projects activity will set the country on a more positive growth trajectory.

In addition, this month’s issue features a report on the region’s banking sector, where structural evolution is taking place in the areas of retail, digital and small and medium-sized enterprise banking. Through a series of case studies, we look at the financial institutions that are leading the way when it comes to innovation in these domains.

Meanwhile, this month’s ranking of the Top 100 regional listed companies reveals that although the valuations of regional listed oil sector companies has fallen, other sectors are holding up well despite volatile global conditions and lower oil prices. Despite the oil sector weighing on the overall performance of MEED’s top 100, a total of 54 initial public offerings in the Middle East and North Africa (Mena) region raised $12.6bn in 2024.

This issue, the team also assesses the potential impact of the snap decision by US President Donald Trump to lift sanctions on Syria; looks at how the planned Disney theme park on Yas Island is a major boost to Abu Dhabi’s tourism offering; and examines how the uptick in investment activity throughout the Middle East-Asia corridor is set to continue alongside the recently announced multibillion-dollar Gulf-US investments in sectors such as defence, energy and AI.

In the June issue, we also examine what Saudi Arabia’s 19% first-quarter 2025 cut in government capital expenditure – and the coinciding drop in contract awards – means for the kingdom; and speak exclusively to Estelle Brachlianoff, Veolia Group CEO, about the French water and waste-treatment firm’s plans for expansion in the Mena region.

We hope our valued subscribers enjoy the June 2025 issue of MEED Business Review.