{"id":15443,"date":"2026-07-15T14:40:38","date_gmt":"2026-07-15T14:40:38","guid":{"rendered":"https:\/\/samer-choucair.com\/samer-choucair-on-how-intensifying-ai-competition-is-reshaping-capital-allocation-in-emerging-markets\/"},"modified":"2026-07-15T14:40:38","modified_gmt":"2026-07-15T14:40:38","slug":"samer-choucair-on-how-intensifying-ai-competition-is-reshaping-capital-allocation-in-emerging-markets","status":"publish","type":"post","link":"https:\/\/samer-choucair.com\/ar\/samer-choucair-on-how-intensifying-ai-competition-is-reshaping-capital-allocation-in-emerging-markets\/","title":{"rendered":"*Samer Choucair on How Intensifying AI Competition Is Reshaping Capital Allocation in Emerging Markets*"},"content":{"rendered":"<div class=\"captioned-image-container\">\n<figure><a class=\"image-link image2 is-viewable-img\" target=\"_blank\" href=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!mm6A!,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff3c7fe00-1d1c-4477-a79b-f72bdbc6278c_1599x1600.jpeg\" data-component-name=\"Image2ToDOM\" rel=\"noopener\"><\/p>\n<div class=\"image2-inset\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!mm6A!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff3c7fe00-1d1c-4477-a79b-f72bdbc6278c_1599x1600.jpeg\" width=\"1456\" height=\"1457\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/f3c7fe00-1d1c-4477-a79b-f72bdbc6278c_1599x1600.jpeg&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1457,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:256449,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image\/jpeg&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:&quot;https:\/\/samerchoucair.substack.com\/i\/207163445?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff3c7fe00-1d1c-4477-a79b-f72bdbc6278c_1599x1600.jpeg&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" class=\"sizing-normal\" alt=\"\"><\/p>\n<div class=\"image-link-expand\">\n<div class=\"pencraft pc-display-flex pc-gap-8 pc-reset\"><button type=\"button\" class=\"pencraft pc-reset pencraft icon-container restack-image\"><title><\/title><\/button><button type=\"button\" class=\"pencraft pc-reset pencraft icon-container view-image\"><\/button><\/div>\n<\/div>\n<\/div>\n<p><\/a><\/figure>\n<\/div>\n<p>Investment entrepreneur Samer Choucair affirmed that the unprecedented acceleration in competition within the artificial intelligence sector represents a structural shift that goes beyond the boundaries of technology, reshaping capital allocation strategies and asset valuation in global and emerging markets, noting that the rise of companies like OpenAI and mounting competitive pressure on traditional semiconductor companies like Intel is pushing institutional investors to reconsider their investment priorities and focus on digital infrastructure and integrated technology services.<\/p>\n<p>Samer Choucair explained that current shifts in the AI market are creating strategic opportunities for sovereign wealth funds and asset managers, particularly in the Gulf region, where investments in data centers and the energy supporting advanced computing, alongside developing local talent, align with the goals of economic diversification programs and Saudi Vision 2030.<\/p>\n<p>Samer Choucair noted that this phase requires investors to build balanced exposure to the sector, combining capitalizing on the significant growth in AI technologies with managing risks tied to rising valuations of leading companies, market volatility, and increased demand for energy and specialized human resources.<\/p>\n<p>Choucair added that the global AI race has become a factor directly influencing global capital flows, as competition is no longer limited to developing technical models, but has extended to owning the infrastructure needed to run these models, including data centers, high-performance computing capacity, and digital service networks.<\/p>\n<p>Samer Choucair explained that major AI companies are rapidly increasing their capital spending on high-performance computing, data storage, and advanced model development, creating significant opportunities for companies specializing in cloud services and technical integration, but simultaneously posing challenges for some traditional semiconductor companies struggling to keep pace with the speed of transformation.<\/p>\n<p>Choucair affirmed that this massive spending represents an investment in raising long-term economic productivity, but imposes short-term pressures related to rising demand for energy and specialized talent, which could affect operating costs and inflation expectations for various institutions and economies.<\/p>\n<p>Samer Choucair noted that central banks now face a new challenge in assessing the impact of large-scale technology investments on economic growth and financial stability, amid the growing role of artificial intelligence in reshaping patterns of production and work.<\/p>\n<p>Choucair explained that current shifts are strengthening the position of integrated technology service providers with the ability to help institutions implement AI solutions safely and scalably, noting that companies such as NTT DATA are benefiting from rising demand for integration and digital transformation services as institutions need to convert technical innovation into practical applications with clear economic value.<\/p>\n<p>Choucair added that companies relying on traditional models or slow to adapt to rapid developments may face pressure on revenue and market valuations, while institutional investors are increasingly moving toward companies capable of generating tangible returns from AI applications.<\/p>\n<p>He said that fierce competition in artificial intelligence offers Gulf economies a historic opportunity to engage in the global value chain, not merely as technology users, but as active contributors to developing solutions and supporting infrastructure.<\/p>\n<p>Choucair added that Gulf states have an opportunity to strengthen their position as a regional technology hub by attracting foreign direct investment into data center and smart platform projects, alongside investing in developing local human capabilities to ensure economic value is retained within the region.<\/p>\n<p>Choucair explained that investment in artificial intelligence aligns with the direction of economic diversification in the Gulf, as digital infrastructure represents one of the core elements for strengthening the competitiveness of regional economies over the coming decade.<\/p>\n<p>Samer Choucair noted that institutional investors, including sovereign wealth funds, pension funds, and hedge funds, need to adopt a balanced strategy when building their portfolios in the AI sector, combining investment in leading innovation companies with investment in supporting companies such as technical service providers and digital infrastructure operators.<\/p>\n<p>Choucair affirmed that this diversification reduces the risk of concentration on specific business models in a rapidly changing sector, while also giving investors greater ability to benefit from long-term growth without full exposure to the volatility of major tech company valuations.<\/p>\n<p>Choucair added that expected M&amp;A activity in the AI sector could offer new opportunities for investors, particularly as companies emerge capable of adapting to competitive pressure and offering specialized, value-added solutions.<\/p>\n<p>He said that focusing on strategic investments in digital infrastructure and the energy supporting artificial intelligence could provide more stable returns for Gulf investment funds compared with direct bets on AI models, which carry a higher degree of volatility.<\/p>\n<p>Choucair affirmed that the coming period will see major companies continue increasing their capital spending on artificial intelligence over the next twelve months, which will affect earnings expectations and the dynamics of global equity markets, particularly in the semiconductor and cloud services sectors.<\/p>\n<p>Choucair added that the next three to five years could see a wave of mergers, acquisitions, and exits by less competitive companies, while opportunities emerge for regional players in the Gulf to strengthen their presence through strategic partnerships and targeted investments.<\/p>\n<p>Choucair noted that over the long term, over the next ten years, artificial intelligence will continue redefining productivity, labor markets, and global value chains, requiring strategic investors to track regulatory and political developments that could affect cross-border capital flows.<\/p>\n<p>Samer Choucair concluded his remarks by affirming that the decisive factor in achieving sustainable value from investments in the AI sector will be the ability to distinguish between short-term opportunities and long-term structural shifts, with a focus on building flexible investment portfolios that benefit from technological growth while managing the risks associated with the rapid pace of change in this sector.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investment entrepreneur Samer Choucair affirmed that the unprecedented acceleration in competition within the artificial intelligence sector represents a structural shift that goes beyond the boundaries of technology, reshaping capital allocation strategies and asset valuation in global and emerging markets, noting that the rise of companies like OpenAI and mounting competitive pressure on traditional semiconductor companies 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