Riyadh and other Gulf cities are possible first movers out of the crisis and into a human centred age of AI
Ulrich Graute at selected conferences, workshops and research missions in Saudi Arabia and United Arab Emirates (2008-2025)
Based on the recent framework agreement, it remains to be seen if the U.S.-Israeli-Iranian war is over and a permanent peace can be reached. Cities, transport lines, and hubs were the main targets of the war. It soon became clear that business concepts of cities across the regions were shaken.
The framework agreement between the USA and the Republic of Iran is just a few days old. Many questions remain open, and risks are looming, but despite these insecurities, cities in the region are very active in assessing the situation, re-evaluating their position, thinking about new strategies, or recalibrating those of the past. During the war, many initiatives and projects were put on hold, but cities and their national governments are very active.
It’s a bit like driving with the handbrake on. Business strategies were shaken but not destroyed. A lot will depend on the right assessment of post-war opportunities and on how and when to relaunch activities. I never received more expressions of interest for cooperation like in recent months, and everybody is looking for the best starting position for the post-crisis without ignoring risks and limitations.
In the world of poli-crises, resilience will be key. Cities have very limited influence on geopolitics, but through economic diversification, social cohesion, and climate resilience, cities can become more resilient against external shocks and more attractive for investors and residents.
Since 2008, I have been in and out of Saudi Arabia and the Gulf region. I experienced the stagnation in the period prior to the 2015 launch of Vision 2030 in Saudi Arabia, the dynamic initiatives and developments afterwards, and now the current crisis as another turning point towards a new transformational period (see pictures).
Well, it could turn out to be positive for the region that the period of fast growth in recent years slows down for a moment. The crisis has to be digested. In addition, new risks and opportunities in the looming age of artificial intelligence need to be assessed and integrated into development strategies. AI developers promise that AI will make life easier and more prosperous. Even if that were right, at the beginning, it is likely to generate a major challenge for development and its governance. And here again, cities will be centre stage.
Spoiler alert: Big Tech and cities will always have different interests when it comes to AI implementation.
Yes, cities and IT companies are both engaged in a rush towards digitisation, technological innovation, and the building of data centres. Big Tech and cities seem to converge on choosing technology in more and more fields, and on responding to challenges with just more technology.
But there is and remains a very big difference in Big Tech and cities: humans.
Whatever Big Tech may speculate on possible disruptions or even mass unemployment, they will only employ as many people as they need. Instead, whatever happens, cities will have at their core thousands, if not millions, of residents. Just imagine the theoretical (and not proven) option that AI would take over most of the current work, the city of Riyadh still would have 8 million inhabitants in need of a decent income and quality of life.
Thus, while AI developers have their priorities, cities have their own. Cities have to consider the perspective of their residents and plan for their urban future. Therefore, cities should use the moment to revisit their strategies. City leaders need to know what kind of city they want for tomorrow’s world, and as part of a possible age of AI:
- Considering different possible scenarios, how will AI change the urban economy, cohesion, and life, and how can urban governance prepare for this?
- How likely is disruption of the urban economy and social cohesion, and how could cities get prepared ahead of time instead of just reacting to challenges when they occur?
- Urban economies, infrastructures, institutional, and individual capacities may need years to adapt. How to bridge the gap between AI development and AI readiness?
- What will a truly human-centred development look like in the age of AI?
- How to preserve and further develop one's own culture in times of poli-crises and dynamic waves of innovation?
The countries and especially the cities of the Gulf region are going pregnant with their future.
Gulf cities have resources, infrastructure, experience, and they have their people as their biggest asset. Everybody talks about AI and data these days, but if cities look beyond AI and data at the humans, cities like Riyadh, Dubai, or Abu Dhabi have the chance to leave the crises as first movers into a truly human-centred age of AI. Exciting times may be ahead. Countries like the Kingdom of Saudi Arabia and the U.A.E. are used to thinking big. That’s impressive, and it is needed now again, but it also needs wisdom and smart decisions to leave nobody behind.

Ulrich Graute and his colleague Yoshinoby Yonekawa of the UN Secretariat in 2008 during a first meeting with the Chief Economist of the Saudi Ministry of Economy and Planning, Eng Ahmad Salah
Policies and Governance for Resilient and Sustainable Cities and Regions














