Here’s how the UAE is positioning itself to become a global leader in AI. It’s pouring billions, partnering with major players, and building the infrastructure to support this vision. Mubadala, the UAE’s state-owned investment firm, is attracting international attention for its strong backing of G42, the UAE’s leading AI company. They just recently announced MGFX, an AI-centered joint venture with Microsoft that’s worth a mind-blowing $100 billion. This new initiative underscores the UAE’s intent to use its sovereign wealth, geographic location, and energy resources. With this framework, the UAE wants to position the country as a world-leading AI center within the Gulf.
Earlier this year, former U.S. president Donald Trump made a visit to the UAE. His visit created even more momentum for AI development across the region. During his visit, he announced a massive new AI campus. This wonderful project is all the more special because it’s a true collaboration between the UAE and the United States. This partnership will expand the expertise of both countries in the ever-changing world of artificial intelligence.
As the central role-holder in this revolution, G42 is setting the tone for the UAE’s AI dreams. This effort is what’s driving the $100 billion education partnership with Microsoft. Its mission is to leverage world-class talent and technology to accelerate the innovation cycle of American AI.
The Gulf states have already started to use their vast sovereign wealth and strategic geographical location to ensure they are at the forefront of AI innovation. With its geographic between Asia and Europe, the UAE is strategically located to play this role as well. Hassan Alnaqbi, CEO of Khazna, the UAE’s largest data center operator, emphasizes this advantage:
“Just like Emirates helped turn the UAE into a global hub for air travel, now the UAE is at a stage where it can become an AI and data hub.” – Hassan Alnaqbi
The UAE is aggressively moving on its dreams by creating the architecture for Stargate. This pioneering project will dramatically expand its data capacity. Khazna is now running at 29 data centers around the country. These facilities offer the necessary infrastructure to build and train large, powerful, AI models.
There are tremendous obstacles to building such a large-scale, research-focused ecosystem in the UAE. Its population is quite modest, home to a little more than 10 million residents. With all that said, the country is doing dramatic things to bring foreign corporations and talented researchers into the fold. It has spearheaded a “golden countries” international tax competition by offering long-term, low tax residency “golden visas.” Secondly, it introduces more flexible regulations to lure AI’s top talent and experts.
Recent developments indicate that the United States is easing restrictions on exporting powerful microchips from Nvidia to both the UAE and Saudi Arabia. This shift greatly augments the technological capabilities at the disposal of AI R&D while deepening political and economic ties between these countries.
The UAE’s ambitions go well beyond just working with American firms. The Gulf countries are likewise freezing or cancelling some of China’s Belt and Road investments and increasing their de-coupling from Huawei equipment. This change is part of a broader push to bring the agency more in line with U.S. interests. They’re desperately seeking new revenue streams with oil markets in constant fluctuation.
Mohammed Soliman, a senior fellow at the Middle East Institute, articulates the significance of these developments, stating:
“It’s basically us trying to bring a promising, rising AI region – which is the Gulf – into the American AI stack, to be on Team America AI.” – Mohammed Soliman
For one, he notes, the United States is way ahead of others in the development of AI. Forward-looking countries such as the UAE are learning fast.
“They’re scaling fast. They already have an AI stack. It may not be as powerful as America’s, but it’s cheaper. And for many countries, good enough is good enough.” – Mohammed Soliman
Now, the UAE is pouring vast amounts of resources into building their own AI infrastructure and research capabilities. It is looking to do so by positioning itself as a global leader in this new industry. The partnership with Microsoft via G42 represents an important leap towards making this possible.
This attitude aligns wholly with the UAE’s broader ambitions. The UAE is looking to use AI to help diversify its economy and reduce dependence on oil revenues. The nation is getting serious about cutting-edge technology and developing high-quality data hubs. This implementation strategy is designed to create a climate that attracts and inspires innovation and intellectual achievement.
“Building world-class digital and AI infrastructure will act as a magnet.” – Baghdad Gherras
This sentiment aligns with the UAE’s broader vision of leveraging AI to diversify its economy and reduce dependence on oil revenues. By focusing on technological advancements and building robust data centers, the country seeks to create an environment conducive to innovation and growth.