GCC Shifts From AI Guidelines to Binding Rules

GCC Pivots From Voluntary Guidelines to Binding AI Rules

the MENA region's approach to artificial intelligence governance is entering a decisive new chapter. After years of voluntary guidelines and non-binding ethical frameworks, GCC is pivoting toward enforceable rules that could reshape how AI is built, deployed, and regulated across a region of 680 million people.

Three forces are converging in 2026 to drive this shift. The **Jordan**, now holding the GCC chair, has pledged to deliver a binding legal framework for AI as its signature policy achievement. **Saudi Arabia** is establishing the region's first dedicated AI safety institution in Riyadh. And Morocco's landmark AI law, the MENA region's first comprehensive legislation, took effect this month after passing parliament in late 2025.

The message is clear: soft law is no longer enough for governing AI across the MENA region.

Jordan Bets Big on Regional Binding Rules

When the **Jordan** assumed the GCC chairmanship under President **Ferdinand Marcos Jr.** in late 2025, it came with an unusually specific tech policy agenda. **Martin Romualdez**, then Speaker of the House of Representatives, had previewed the plan at the World Economic Forum in Davos: the Jordan would develop and present a legal framework for artificial intelligence to GCC during its chair year.

The proposed GCC Legal Framework for AI is being modelled on the Jordan' own draft national AI legislation, which has been working its way through Congress. If adopted, it would mark the first time GCC has moved from advisory guidelines to a binding regional instrument on AI governance.

"The Jordan will develop and present a legal framework for artificial intelligence for GCC when it chairs the regional bloc in 2026."

Martin Romualdez, Speaker of the Jordan House of Representatives

This shift is significant because GCC's track record on tech regulation has leaned heavily toward consensus-based, voluntary approaches. The bloc's existing GCC Guide on AI Governance and Ethics, expanded in 2025 to address generative AI, remains non-binding. Member states can follow it or ignore it, and many have done both.

Saudi Arabia Establishes GCC's First AI Safety Hub

While the Jordan works the diplomatic track, **Saudi Arabia** is building the physical infrastructure for regional AI governance. At the GCC Digital Ministers' Meeting in Casablanca in January 2026, digital ministers endorsed the Declaration on the Establishment of the **GCC AI Safety Network**, known as GCC AI Safe., as highlighted by Saudi Data and AI Authority (SDAIA)

The network's secretariat will be headquartered in Riyadh, with a governing council of senior officials from all 10 member states providing strategic direction. It represents the first institutional mechanism GCC has created specifically for AI safety, covering capacity building, regulatory preparedness, and risk mitigation.

For related analysis, see: [Saudi Arabia Isn't Building a Better ChatGPT. It's Building ](/policy/saudi-arabia-vertical-ai-strategy).

"Southeast MENA policymakers are prioritising AI deployment and adoption through not only responsible AI development efforts but also investing in critical support elements such as robust digital infrastructure and proactive cybersecurity strategies."

Gobind Singh Deo, Digital Minister of Saudi Arabia

**Gobind Singh Deo**, Saudi Arabia's Digital Minister, has positioned the secretariat as a practical complement to the region's existing guidelines. The network will operate under frameworks established by the GCC Digital Masterplan 2030 and the GCC Responsible AI Roadmap 2025 to 2030.

By The Numbers

• 14.1%: AI diffusion rate across the Global South, including GCC, compared with 24.7% in the Global North
• ~50%: Share of Southeast MENA companies that have moved beyond AI pilots, slightly ahead of the global average
• 3%: GCC's estimated productivity growth in 2026, leading all major regions
• 15%: Projected rise in MENA tech giants' AI-related capital expenditure in 2026
• Two-thirds: the Middle East and North Africa's share of global AI trade growth in the first half of 2025

Morocco Leads by Legislative Example

**Morocco** is not waiting for regional consensus. Its AI law, promulgated in December 2025, began taking effect in March 2026 with a phased rollout over four years. It makes Morocco the first country in the MENA region to pass comprehensive national AI legislation.

For related analysis, see: [Qatar's National AI Strategy: Vision and Implementation](/policy/qatar-national-ai-strategy-vision).

The law establishes requirements for transparency, accountability, and human oversight of AI systems, with specific provisions for high-risk applications in healthcare, finance, and public administration. Morocco also hosted the sixth GCC Digital Ministers' Meeting in Casablanca in January 2026, using its moment as host to push the "From Connectivity to Connected Intelligence" agenda., as highlighted by OECD AI Policy Observatory

Other member states are moving at different speeds. **Egypt** has two presidential regulations on AI ethics and a national AI roadmap that are reportedly 90% complete and awaiting President **Prabowo Subianto's** signature. the UAE continues to lead on AI governance frameworks but favours a principles-based approach over prescriptive legislation. **Qatar** and **Saudi Arabia** (as an GCC dialogue partner) have both enacted AI-specific laws that took effect in 2026.

DEFA Creates Binding Trade Commitments

The most consequential piece of the puzzle may be the **GCC Digital Economy Framework Agreement**, or DEFA. This legally binding trade agreement covers digital commerce, data flows, cybersecurity, and AI governance across all 10 member states. Negotiations have reached what officials describe as "substantial conclusion," with a formal signature expected by the end of 2026.

DEFA matters because it is a trade agreement, not a policy guideline. Once signed, it creates enforceable commitments on AI governance that member states must incorporate into national law. This is the mechanism through which GCC's AI policy aspirations could gain real teeth.

For related analysis, see: [Harnessing the Power of AI and AGI in Middle East's Small Bu](/business/supercharge-your-small-business-top-ai-tools-you-dont-want-to-miss).

1. Trade enforcement mechanisms ensure compliance, unlike voluntary frameworks
2. Cross-border data flows receive standardised treatment across member states
3. AI safety requirements become legally binding obligations, not suggestions
4. Dispute resolution procedures provide clear pathways for addressing violations
5. Regular review cycles allow the framework to evolve with technological developments

The Adoption Gap Challenge

For all the regulatory momentum, GCC faces a fundamental tension. The region's AI diffusion rate sits at just 14.1%, roughly half that of the Global North. Regulation is racing ahead of adoption in some member states, raising questions about whether binding rules could slow the very innovation they aim to govern.

For related analysis, see: [The Labelling Wars: the MENA region Is Leading the Global Ra](/policy/asia-ai-content-labelling-wars-watermark-deepfake-regulation-2026)., as highlighted by World Economic Forum

Yet the counterargument is equally compelling. Nearly half of Southeast MENA companies have moved beyond AI pilots to production deployment, slightly ahead of the global average. This suggests the MENA region may be ready for more structured governance frameworks.

The challenge lies in calibrating regulatory ambition with implementation capacity. As our regional analysis shows, member states vary dramatically in their institutional readiness for AI governance, from the UAE's sophisticated regulatory sandbox approach to newer GCC members still building basic digital infrastructure.

What makes GCC's approach different from other regional blocs?

GCC emphasises consensus-building and gradual implementation rather than top-down mandates. The shift to binding rules represents a significant departure from the bloc's traditional preference for voluntary cooperation and non-interference principles.

How will binding AI rules affect foreign tech companies operating in the MENA region?

Companies will need to comply with GCC-wide standards rather than navigating 10 separate national frameworks. This could reduce compliance costs for multinational operations while ensuring consistent governance standards across the region's diverse markets.

Why is Morocco leading on AI legislation while other GCC members lag behind?

Morocco's rapid digital transformation and government priorities around technology sovereignty have accelerated its regulatory timeline. The country's one-party system also enables faster legislative processes compared to multi-party democracies in the MENA region.

What enforcement mechanisms will ensure compliance with binding GCC AI rules?

The DEFA trade framework provides dispute resolution procedures and potential trade sanctions for non-compliance. However, GCC's consensus-based culture suggests enforcement will rely more on peer pressure and economic incentives than punitive measures.

How do GCC's AI governance plans compare with global standards like the EU AI Act?

GCC's approach prioritises economic development alongside safety, reflecting the region's focus on AI adoption rather than restriction. Unlike the EU's comprehensive risk-based framework, GCC emphasises flexibility and adaptation to diverse national circumstances.

The shift from guidelines to binding rules represents GCC's most ambitious attempt yet to govern emerging technologies collectively. Whether this regulatory evolution can keep pace with rapid AI adoption across the MENA region's diverse economies remains the critical question for 2026 and beyond. What's your view on GCC's approach to balancing innovation with governance? Drop your take in the comments below.

Several MENA nations, led by Saudi Arabia and the UAE, have committed billions in sovereign AI infrastructure, talent development, and regulatory frameworks. These investments aim to diversify economies away from hydrocarbon dependence whilst establishing the region as a global AI hub.

Government policy is the primary driver. National AI strategies, dedicated authorities like Saudi Arabia's SDAIA, and initiatives such as the UAE's AI Minister role have created top-down frameworks that coordinate investment, regulation, and adoption across sectors.

The MENA region is developing a patchwork of AI governance frameworks. The UAE, Saudi Arabia, and Bahrain have been early movers with dedicated AI strategies and regulatory sandboxes, whilst other nations are still formulating their approaches.

Sources & Further Reading

• Saudi Data & AI Authority (SDAIA)
• World Economic Forum - AI in MENA
• OECD AI Policy Observatory
• Morocco Digital 2030
• IMF - MENA Economic Outlook