AI governance is increasingly shaping economic opportunity and digital sovereignty. This roadmap outlines actionable policy directions to help the Arab region operate effectively within evolving governance frameworks while strengthening its ability to shape future norms—through clearer regulation, responsible AI mechanisms, cross-border alignment, and full-stack ecosystem enablers (infrastructure, talent, R&D, capital, and IP).

This policy brief examines the global evolution of decentralized governance models enabled by blockchain technology, focusing on how these systems can enhance transparency, participation, and accountability in managing digital commons. Drawing on case studies from

major blockchain networks—including Bitcoin, Ethereum, Tezos, Cardano, Algorand, and the Internet Computer—the brief analyzes how decentralized autonomous organizations (DAOs) and on-chain governance mechanisms are shaping new models of collective decision-making.

The analysis highlights key challenges such as limited participation, lack of expertise, conflict of interest, and resource management inefficiencies, alongside technological innovations that address these issues through mechanisms like parametric governance, delegated voting, incentive structures, and multi-layered oversight. The brief also explores emerging regulatory frameworks, including the U.S. Financial Innovation and Technology Act, and considers the growing intersection between blockchain governance and artificial intelligence.

The brief concludes with policy recommendations for leveraging decentralized governance principles within the public sector, including piloting blockchain-based participatory budgeting, adopting algorithmic audit trails, promoting polycentric governance structures, and establishing regulatory sandboxes for experimentation. Collectively, these insights offer practical pathways for building more transparent, resilient, and inclusive governance systems in the digital age.

The report provides an in-depth examination of the state of artificial intelligence (AI) governance and competitiveness across the Middle East and North Africa (MENA) region. It captures how Arab countries are adopting AI technologies, building digital infrastructure, and shaping regulatory frameworks to keep pace with global developments. Based on extensive fieldwork covering 327 AI and digital SMEs across ten countries, the study offers valuable insights into the opportunities and challenges shaping the region’s AI ecosystem.

Findings reveal that the UAE and Saudi Arabia are emerging as regional leaders in AI readiness, supported by strong infrastructure, investment, and policy direction, while other MENA countries continue to navigate fragmented regulations, limited funding access, and talent gaps. Despite these disparities, the report highlights growing optimism among businesses and a shared recognition of the role of AI in driving innovation and economic growth.

By emphasizing responsible governance, ethical frameworks, and regional cooperation, the report calls for strengthening AI education, research, and investment to bridge the AI divide and position the MENA region as a competitive and inclusive contributor to the global AI landscape. The study was developed in partnership with Google.org.

The United Arab Emirates (UAE) stands at a transformative inflection point in its artificial intelligence development journey. While the nation has made significant strides in AI innovation, deployment, solidified by strategic partnerships, a critical gap persists in translating these advancements into global AI security leadership. This policy brief builds the case for establishing a UAE Artificial Intelligence Safety Institute (AISI), both as an urgent national priority and a strategic complement to the Emirates' newly cemented role as the Middle East's AI infrastructure hub. The UAE’s strategic investment in AI was further amplified in mid 2025 by landmark agreements with the United States that position the UAE as a global AI infrastructure leader. The two countries agreed to an investment of $150 billion on AI infrastructure, which includes access to cutting-edge semiconductors and binding security commitments to prevent technology diversion, creates both new opportunities and responsibilities. With Abu Dhabi positioned to host hyperscale AI compute infrastructure capable of serving nearly half the world's population within a 2,000-mile radius, the Emirates now faces imperative to pioneer security frameworks that protect not just national interests but the integrity of global AI ecosystems. The proposed AISI would leverage three strategic advantages:

1) The UAE's established cybersecurity leadership, demonstrated through its world-class threat detection and mitigation capabilities;

2) its unique geopolitical position as a trusted partner to competing AI powers; and

3) The unprecedented scale of sovereign investments in AI infrastructure through vehicles like MGX and G42.

By focusing on advanced AI security research, verification mechanisms, and international coordination, the AISI would address critical gaps in the global AI safety landscape while protecting the UAE’s $1 trillion investments in next-generation technologies. Such step would align with the security obligations of the US-UAE AI Acceleration Partnership, which mandates robust safeguards for American-sourced technologies while enabling the UAE to emerge as a global hub for developing transnational AI safety standards. As frontier AI capabilities advance exponentially, the window for establishing governance frameworks that keep pace with infrastructure growth is closing rapidly. The AISI represents not just a strategic necessity for securing the UAE’s AI ambitions, but an opportunity to redefine global norms for safe, beneficial AI development in an era of intensifying technological competition.