Brookfield Asset Management (BAM.US) and the Qatar Investment Authority have announced a joint $20 billion investment platform focused on artificial intelligence (AI) infrastructure, signaling intensifying competition in the Middle East for dominance in the AI sector.

According to a joint statement released on Tuesday, New York-based Brookfield and Qai, a newly established subsidiary of Qatar’s $524 billion sovereign wealth fund, will co-invest in AI infrastructure projects in Qatar and select international markets. Brookfield will participate through its newly launched AI-focused fund, which has a global fundraising target of $100 billion and has already secured commitments from institutional investors, including the Kuwait Investment Authority.

As an asset management giant overseeing over $1 trillion, Brookfield has been one of the most active foreign investors in the Gulf region in recent years. CEO Bruce Flatt stated, "This partnership marks our first AI infrastructure investment in the Middle East, combining Qatar’s strategic vision with Brookfield’s global expertise."

Brookfield estimates that global AI infrastructure will require up to $7 trillion in investments over the next decade. Middle Eastern sovereign wealth funds, with their trillions in assets, are emerging as key drivers of this infrastructure wave.

Major Middle Eastern economies are accelerating investments in technology to reduce reliance on traditional energy revenues. Sovereign wealth funds are pouring billions into AI-related sectors, including semiconductor development, data centers, and chatbot technologies.

Neighboring UAE and Saudi Arabia have also been active, establishing multi-billion-dollar funds to support local AI startups and develop national champions like Abu Dhabi’s G42 and Riyadh’s Humain.

The Qatar Investment Authority has been expanding its AI portfolio, participating in Silicon Valley AI startup Anthropic’s $13 billion funding round and partnering with Blue Owl Capital to create a $3 billion data center investment platform.

Qatar Investment Authority CEO Mohammed Saif Al-Sowaidi emphasized that the Brookfield collaboration "supports Qatar’s 2030 National Vision, driving economic diversification and innovation-led transformation."

This partnership is Qatar’s latest move to attract global investors. Previously, BlackRock’s (BLK.US) Global Infrastructure Partners and B Capital, founded by Eduardo Saverin, announced plans to establish offices in Doha.

Unlike established financial hubs like Dubai, Abu Dhabi, and Riyadh, Qatar has been better known as a mediator in geopolitical conflicts. However, reports suggest Qatar now aims to leverage its sovereign wealth fund to attract private equity and infrastructure investment firms, further developing its financial market.