AI regulation in the GCC and the need for a unified approach?

Initially published by Law Middle East The rapid advancement of artificial intelligence (AI) technologies has revolutionised industries across the globe, driving unprecedented innovation and reshaping economies. However, with great power comes great responsibility, and world leaders have recognised the need to regulate AI to ensure ethical use, protect fundamental rights, and maintain public trust.

Some jurisdictions are in the advanced stages of regulating, whilst others have taken a more tentative approach and have developed frameworks around existing laws, such as data privacy and intellectual property laws.

Beneath this seemingly logical justification to regulate AI technology, lies a more unsettling motive. Some have likened the race for AI supremacy to an arms race, reminiscent of the competition to develop the first atomic bomb, as depicted in the cinematic masterpiece Oppenheimer. Elon Musk suggested AI is more dangerous than a nuclear bomb, and whilst he is often an outlier, he is not alone in this regard. The Islamic World Educational, Scientific and Cultural Organisation (ICESCO) stated that AI is a blessing that can bring great benefits, but at the same time it may be a curse when it is exploited unethically.

Have we already lost without realising it, given how deepfakes have permeated our everyday lives, spreading disinformation, and blurring the lines between reality and illusion?

In this article, I will specifically explore the regulatory approach taken by Gulf Cooperation Council (GCC) economies in the Middle East, which have seen a significant shift from traditional oil-based economies to emerging technology.

UAE

The UAE has worked tirelessly on fostering an attractive environment for technology companies and investors through various initiatives, focused on fintech, blockchain, and AI. Several government initiatives have implemented AI technology in the public sector, including healthcare, finance, and transportation. Dubai and Abu Dhabi have become tech hubs for thriving start-ups, driving innovation, led by these government initiatives. The education sector has also heavily invested in AI, and the UAE is purposefully driving the AI agenda, in collaboration with behemoths like IBM and Microsoft, which, if successful, will catapult the UAE as a leader in AI by 2031.

The government appointed a minister of AI in 2017, and it has also adopted key federal laws, including the Projects of Future Nature (Law 25 of 2018) and Establishing the Artificial Intelligence and Advanced Technology Council (Law 3 of 2024). The aim of these is to ensure there is a robust, yet streamlined, framework for issuing AI licences for innovative projects. In addition, the AI Office has also implemented several non-binding guidelines relating to AI, such as The Deepfake Guide, The AI Ethics Guide, and The AI Adoption Guide. The legislation applies to the mainland and the key financial free zones (DIFC and ADGM) have not yet released any AI-focused regulations, but this is likely to change. Currently, the DIFC and ADGM apply existing legislation, for example, making suitable amendments to the Data Protection Regulations and the Intellectual Property Laws.

Qatar

Qatar’s Ministry of Communications and Information Technology (MCIT) has developed a national AI strategy on six key areas: education, data access, employment, business, research, and ethics. This strategy aims to integrate AI in a way that supports Qatar’s economic and strategic goals, aligning with the Qatar National Vision 2030, and adapting to local needs and cultural context.

Qatar also has an AI Committee, formed under Cabinet Decision No. 10 of 2021, which includes members from various sectors such as education and finance, tasked with overseeing AI initiatives. The National Cyber Security Agency’s National Cyber Governance and Assurance Affairs (NCGAA) has established policies and standards for cybersecurity, including guidelines for the secure implementation and use of AI. These guidelines apply to both public and private sectors, and address AI risks, principles, and best practices, including recommendations for generative AI. Qatar has rightly identified the sense of urgency, but this has not yet translated to boots on the ground.

Kuwait

Kuwait is still in the early stages of AI regulation, with no specific rules or guidelines currently in place. However, AI investments have surged since 2000, and Kuwaiti companies are leveraging AI for a competitive edge, aligning with Kuwait Vision 2035. The key areas of focus for Kuwait are health, education, and environment, with an overarching ethos of ensuring human rights are adequately protected in the advent of emerging technology.

A proposed bill aims to create the Public Authority for Artificial Intelligence to draft necessary legislation, safeguard data, and position Kuwait as a leader in AI. The Kuwait Institute for Scientific Research (KISR) is also contributing to AI advancements. Existing data protection laws, like those under the Communication and Information Technology Regulatory Authority, are relevant for AI systems and will be applied in the immediate period.

Saudi Arabia

The Saudi Data and Artificial Intelligence Authority (SDAIA) introduced draft AI Ethics Principles in September 2023, following the mandate from the Council of Ministers’ Resolution No. (292) to create and monitor AI-related policies and standards. These principles, developed by analysing global practices, aim to support Saudi Arabia’s Vision 2030 by promoting AI adoption, encouraging innovation, and ensuring responsible and ethical use.

SDAIA also issued Generative AI Guidelines in January 2024, offering non-binding advice for government entities and the public on the ethical use of AI. Currently, there are no specific AI regulations in Saudi Arabia, but SDAIA has the authority to establish and enforce future AI laws. Existing laws, such as those related to data protection and intellectual property, impact AI development and use. Compliance with these principles and guidelines, whilst currently voluntary, will likely become mandatory once official regulations are established.

Oman

In Oman, the Ministry of Transport, Communications, and Information Technology (MTCIT) launched a national AI and advanced technologies programme focused on boosting productivity, developing AI skills, accelerating adoption, and governing AI use. This programme supports Oman’s Vision 2040 by promoting a digital economy. The MTCIT introduced an AI systems policy with six key principles—transparency, safety, accountability, fairness, inclusiveness, and human-centricity—applicable to all government units.

Oman’s data protection laws, such as the Personal Data Protection Law, also extend to AI systems. As AI adoption grows, companies must navigate risks like confidentiality, data protection, and IP, ensuring compliance with existing regulations.

Bahrain

Bahrain has been very proactive in the AI space. Bahrain’s digital government guide recognises that emerging technologies like AI present significant opportunities for societal advancement and economic growth. Aligned with the country’s Economic Vision 2030, the digital government strategy encourages government bodies to explore and implement emerging technologies to enhance community engagement and public administration. The strategy also emphasises collaboration between public and private sectors to achieve these goals. Some of these initiatives include AI procurement; an advanced computing lab by the University of Bahrain, and the integration of AI into courtrooms and the judiciary.

Bahrain’s focus for the ethical use of AI centres around data privacy, sustainability, non-discrimination, inclusion, accountability, and transparency. These principles align with Bahrain’s current legal framework, including Law No. 30 of 2018 on data protection, to ensure responsible AI development and deployment.

Implications for the tech industry

As regulations come into force around the world, it will impact innovation, particularly for SMEs facing high compliance costs. Nonetheless, establishing clear and transparent guidelines at an early stage should enhance trust and create a level playing field in the long-term, which will ultimately benefit the region. For companies with global expansion plans, applying a broad approach to compliance with regulations can offer a competitive edge. Establishing global alliances and partnerships will be essential for ensuring compliance across supply chains and maintaining product interoperability.

Whilst the Middle East is ideally positioned to lead the global AI landscape, rather than the fragmented approach to regulation currently taking place on a country-by-country basis, the region would substantially benefit if it were united in adopting a single cohesive regulatory framework. This would ensure interoperability and scalability for companies, which needs to be high on the agenda, and would firmly place the Middle East alongside the EU, which is currently the largest single market in the world.

Irrespective of the driving force, the wheels are well and truly in motion, and the benefits and threats posed by AI are undeniable. Whether used for progress or power, the impact on society will be monumental. https://www.law-middleeast.com/ai-regulation-in-the-gcc-and-the-need-for-a-unified-approach/