GCC’s role in the world of technofeudalism

The world is pivoting from oil-driven economies to a new era dominated by technology, data, and artificial intelligence (AI). This transformation, described as “technofeudalism” by former Greek Minister of Finance Yanis Varoufakis in his book Technofeudalism: What Killed Capitalism, represents a profound restructuring of global power. Varoufakis argues that big tech companies have replaced traditional markets with platforms and data-driven systems, creating a new order where those controlling global digital platforms rule the world. At the centre of this shift are figures like Elon Musk, Jeff Bezos, Peter Thiel, Bill Gates, Mark Zuckerberg, and Sam Altman, who are not only leading innovation but also wielding unprecedented influence on global policies in AI, energy, and connectivity. As the world embraces these technologies, the Gulf Cooperation Council (GCC) is uniquely positioned to evolve from a hub of oil and gas exports to a global leader in technology and sustainability. The Sultanate of Oman and its GCC neighbours are actively investing in technology to future-proof their economies. Historically reliant on hydrocarbons, the region is diversifying through strategic investments in AI, big data, and digital infrastructure. In Oman, Oman Vision 2040 charts a clear path toward economic diversification and technological innovation. Oman’s $30 billion hydrogen project in the Wilayat of Al Duqm showcases its commitment to green energy, with AI and big data being utilised to optimise energy production and attract international investment. Similarly, major ports in the wilayats of Salalah and Al Duqm are integrating advanced logistics technologies to enhance their efficiency and role in global trade routes. These initiatives position Oman as a vital player in the global supply chain and a model for the GCC’s transition into a digital economy. The UAE’s AI Strategy 2031 and Saudi Arabia’s Vision 2030 demonstrate their commitment to AI-driven growth, with investments in sectors ranging from fintech to renewable energy. Collectively, the GCC’s vision reflects an understanding of the transformative potential of technology in shaping a sustainable future. AI and big data are not just technological tools—they are becoming geopolitical assets. Musk, now the czar of the US Department of Government Efficiency (DOGE), has redefined global internet access through his company Starlink, particularly in underserved and politically unstable regions. However, through his other company X, Musk has also been accused of spreading fake news, disinformation, and conspiracy theories to boost influence and engagement. On the other hand, his AI rival Altman and OpenAI have sparked critical discussions on AI ethics and governance. These advancements influence global policies, decision-making, and connectivity, underscoring the power of technology in shaping the modern world and daily life. The GCC’s sovereign wealth funds, such as Oman Investment Authority (OIA) and Saudi Arabia’s Public Investment Fund (PIF), are strategically investing in these trends. By committing billions to Big Tech and start-ups, the GCC is not only diversifying its economy but also embedding itself in the technofeudal order, albeit not without risks. Oman stands out as a leader in this transformation, leveraging its strategic location, neutral foreign policy, and cultural heritage. As a gateway between East and West, Oman has the potential to foster partnerships with global technology leaders while strengthening its ties to emerging markets. Oman’s emphasis on cultural diplomacy enhances its ability to lead in this space. By leveraging AI-driven storytelling and virtual platforms, Oman can amplify its rich heritage to global audiences, creating unique opportunities for tourism, education, and investment. Furthermore, Oman’s young and tech-savvy population is a vital asset. Investments in education and skill development, particularly in the National Digital Economy, AI, data science, and rising start-up programmes, will empower the next generation to take a leading role in the digital economy. This focus on human capital ensures that the benefits of technology are broadly shared, creating a foundation for inclusive growth. As the global economy pivots from oil to AI, the GCC has a unique opportunity to lead this transformation. By embracing innovation, fostering collaboration, and prioritising sustainability, the region can redefine its role in the global order. For the GCC, this is not just a challenge but a moment of profound potential. With forward-looking visions, strategic investments, and a commitment to progress, the region can set a model for how smaller nations thrive in a technofeudal world. As Varoufakis says, the future belongs to those who adapt to this new order. The people of the GCC are proving they have the ambition and vision to do just that.