As global geopolitics reshapes supply chains, CNN’s Eleni Giokos and Paula Hancocks explore how the Gulf is positioning itself at the centre of two strategic shifts: the race for critical minerals and the push to build domestic defence industries.
Critical minerals are fast becoming the new currency of economic power, and the Gulf is moving to secure its role. In January, Saudi Arabia hosted the 5th edition of the Future Minerals Forum, bringing together industry leaders, governments, and experts. Daniel Yergin, Vice Chairman at S&P Global talks about the race for control of minerals, "Certainly with minerals, it’s a scramble. There’s almost a panic since last April and Liberation Day in Washington, when they came out with the tariffs, and then the Chinese responded with controls on rare earth. There’s been almost a panic in Washington about minerals and particularly rare earth."
He continues on the growing demand for copper, "You now have AI. And in the US, we think with data centres, 20% of demand is going to be for data centres because data centres are voracious appetites for electricity and you need copper for electricity. And then you have increased defence spending around the world. That’s copper too."
Bandar bin Ibrahim Al-Khorayef, Saudi Arabia’s Minister of Industry and Mineral Resources, said at the Future Minerals Forum, "Here in Saudi we are very confident because we actually can show that the competitiveness is there because of three very important ingredients that come together and are very, very hard to find elsewhere. Saudi Arabia has a very competitive energy position where we can use this in the further processing. Any processing of any raw material in minerals will require a lot of energy. And third is our location as a country we all know, I think the minister from Congo made it clear that 30% of the cost of minerals is in transportation and logistics."
The Gulf has been one of the world’s largest importers of arms, with Saudi Arabia, the UAE, and Qatar ranking consistently in the global top ten buyers. Now, a new chapter is emerging, with governments building home-grown defence champions like the UAE’s EDGE Group and Saudi Arabia’s SAMI, with ambitions not just to assemble and service, but to export weapons systems and technology abroad. CNN’s Paula Hancocks visits the Dubai Air Show to see how Gulf players plan to accelerate their transition from buyer to builder.
With geopolitical tensions continually testing the region Hamad Al Marar, CEO of EDGE Group, says that uncertainty has a way of fast-tracking decisions, turning cautious budgets into immediate priorities. He talks about the company’s priorities, "We have three areas that we want to be if not the player, then the players. That’s smart weapons, autonomous systems, and electronic warfare."
Bob Harward is Executive VP, International Business and Strategy, at Shield AI, a US aerospace and defence technology group focusing on AI-powered automation. Harward tells Hancocks that he welcomes the military and economic focus of President Trump on the Gulf region, "The defence industry has always been a critical enabler for any country and it is beyond just national security and the military support that provides that. There’s political and economic value as well."