Riyadh summit highlights Gulf-Europe investment in AI and technology

EU-GCC partnership shifts focus towards technology, clean energy, digital infrastructure and resilient supply chains

The Gulf-EU partnership is entering a new economic phase that goes beyond traditional trade, with greater attention being placed on investment in technology, artificial intelligence, clean energy, digital infrastructure and supply chains.

The second EU-GCC Summit will take place in Riyadh on October 24, according to the European Commission’s official spokesperson, who spoke to Al-Eqtisadiah.

The statement came in response to questions from Al-Eqtisadiah to European Council President Antonio Costa ahead of the second EU-GCC Summit, which could provide a platform for advancing relations towards a new economic model centred on long-term, practical projects and partnerships.

The spokesperson said the EU views the summit as an opportunity to provide fresh political and economic momentum to ties with GCC states, as goods trade between the two sides reached €165.7 billion ($188.2 billion) in 2025, representing a 1.1% increase from the previous year.

He said the EU’s priorities extend beyond expanding trade volumes, with investment and cooperation in digital connectivity, energy, industry and innovation expected to feature prominently in the next phase. The EU also wants to strengthen supply chains and trade routes.

AI enters the heart of the partnership

According to the European Commission spokesperson, one of the major developments in the coming phase could be deeper EU-GCC cooperation in the artificial intelligence economy, with the EU increasingly directing investment towards AI infrastructure, including cloud computing and data centres.

He said this could create significant opportunities for EU-GCC partnerships involving the construction and operation of data centres, high-performance computing and AI applications, as well as cybersecurity and cloud services.

In July, the EU Commission launched a call to establish up to seven AI gigafactories across Europe, backed by up to €10 billion in European and national funding.

The initiative is expected to attract at least €20 billion in private investment, potentially creating opportunities for joint Gulf-European investment in cloud computing, data centres, AI applications and digital industries.

The potential is particularly significant given the Gulf states’ strong financing capacity and extensive digital transformation programmes, while Europe offers a substantial research and technology base and companies operating across advanced sectors.

Digital infrastructure: a new bridge between the Gulf and Europe

The EU spokesperson said the commission is proposing cooperation on digital connectivity, transport and energy as part of its wider connectivity agenda.

He explained that the approach would expand the idea of connectivity between the two regions beyond traditional trade corridors to include cross-border digital infrastructure, telecommunications networks, data centres, cloud services, cybersecurity and data exchange.

The commission considers digitalisation and connectivity among the key pillars of its Gulf partnership strategy, alongside trade, investment, energy and the green transition.

Clean energy projects poised to expand

Clean energy is also among the areas expected to attract greater investment cooperation between the Gulf and Europe in the coming years.

The EU requires substantial investment to support the transformation of its energy sector. The commission estimates annual investment requirements of around €660 billion between 2026 and 2030, rising to €695 billion annually between 2031 and 2040.

EU expertise and technology could therefore combine with Gulf investment in solar and wind energy, green hydrogen, energy storage and smart grids, as well as technologies aimed at reducing emissions.

Cooperation could also extend to projects beyond the two regions, particularly across the Middle East and North Africa.

From factories to value chains

The EU Commission spokesperson said future opportunities would extend beyond technology and energy, with the summit agenda also highlighting potential cooperation in advanced industries, logistics and finance.

This could gradually move relations away from a “trade between markets” model towards a more integrated system based on joint value chains, with European and Gulf companies cooperating in production, development, financing and distribution.

Potential sectors include advanced industries, industrial equipment and technologies, logistics, financial technology, health technologies, cybersecurity, telecommunications and energy.

Free trade agreement: the biggest file

He said that despite technology and energy gaining greater prominence, the free trade agreement between the EU and GCC remains one of the partnership’s key economic issues.

The EU Commission has said it wants an ambitious and balanced agreement with genuine commercial value, creating new market access opportunities and establishing clear rules for trade and investment.

In a significant development, the commission is consulting companies, investors and chambers of commerce to assess the economic impact of the proposed free trade agreement. The consultation will remain open until October 19.

The development adds significance to the Riyadh summit as the free trade agreement moves from a prolonged negotiation towards a more practical discussion, with European institutions seeking greater participation from the business community.

Saudi Arabia: where trade and investment meet

For Saudi Arabia, the emerging Gulf-European agenda could complement the objectives of Saudi Vision 2030, particularly its focus on economic diversification, attracting investment and technology and expanding non-oil sectors.

Saudi Arabia and the EU also support the India-Middle East-Europe Economic Corridor, which seeks to develop integrated transport, energy and digital infrastructure connections.

This creates scope for a broader approach to future projects, with the partnership potentially extending beyond individual national markets to regional initiatives linking the Gulf with Europe and Asia through transport, energy and digital infrastructure networks.

Business forum: from data to projects

The spokesperson said the business forum planned after the summit would be particularly important, as it could provide a platform for turning political priorities into direct discussions between businesses and investors.

Expected areas of discussion include practical projects in clean energy, AI, data centres and digital services, along with advanced industries, logistics, supply chains and financing.

However, potential opportunities emerging from the summit agenda should be distinguished from projects that have already been formally announced. The European Commission’s responses do not identify any specific joint investment projects in AI or other sectors at this stage.

The spokesperson said European data suggests that the next phase of Gulf-European relations could develop around three connected pillars: more open trade, increased investment and deeper technological and industrial cooperation.

While trade worth €165.7 billion provides an important economic foundation, future expansion could increasingly come from sectors beyond oil and traditional goods, including AI, data centres, clean energy, advanced industries and logistics.

Earlier preparatory consultations

Gulf and European officials recently held consultations on the sidelines of the UN General Assembly in New York, where preparations for the upcoming summit were discussed.

European Commissioner for the Mediterranean, Dubravka Suica, met Jasem Mohamed Albudaiwi, secretary-general of the GCC.

Suica said at the time that the EU sought to strengthen its strategic partnership amid a difficult geopolitical environment and expanding cooperation in areas including trade, investment, energy, transport and digital connectivity.

Luigi Di Maio, the EU special representative for the Gulf region, also said the EU-GCC strategic partnership requires a strong, candid and results-focused dialogue.