The advancement of artificial intelligence is proliferating beyond just Silicon Valley.
From the shores of Malta to the streets of Paris, new centers of AI innovation are emerging globally. The United Arab Emirates is positioning itself as a pivotal hub in the Middle East, fueled by a surge of investments from former US President Donald Trump.
This week, amidst Trump’s visit to the Middle East, the United States and the UAE announced $200 billion worth of commercial agreements, as reported by the White House. A significant outcome of this collaboration is the agreement for the UAE to establish the largest AI campus outside of the United States, which will provide the country with enhanced access to AI chips. This deal signifies a considerable achievement for the region, especially given the restricted access to chip technology experienced under President Biden due to relations with China.
The UAE has been asserting its presence in the AI landscape for some time.
In October, the UAE gained attention by participating in a groundbreaking funding round that marked the largest in Silicon Valley’s history: a $6.6 billion investment led by OpenAI. This funding came via MGX, a state-supported technology corporation specializing in artificial intelligence and semiconductors.
This investment is part of the UAE’s initiative to become a global leader in AI by 2031 through targeted strategic initiatives, public involvement, and research funding. Last year, Abu Dhabi, the nation’s wealthiest emirate, unveiled Falcon — its inaugural open-source large language model. The state-supported AI company G42 is also working on training large language models in Arabic and Hindi to better serve populations that primarily speak those languages.
Another testament to the UAE’s commitment to AI is the appointment of Omar Sultan Al Olama as the nation’s AI Minister in 2017.
In a video interview with the Atlantic Council, a Washington-based think tank, he acknowledged that the UAE faces substantial competition from leading nations like the US and China, which collectively invested $67.2 billion and $7.8 billion in AI technology, respectively, in 2023, according to Stanford’s Center for Human-Centered Artificial Intelligence.
During this discussion, he emphasized the importance of collaboration rather than rivalry.
“I don’t see it as a zero-sum scenario where AI will only be developed in the US or solely in China or the UAE,” Al Olama stated at the Atlantic Council event in April. “What I believe will emerge is a network of excellence across various regions where specific applications or domains can be addressed more effectively by certain countries, players, or companies.”
The UAE stands among the wealthiest nations globally, primarily due to its extensive oil reserves. According to the International Trade Administration, it ranks among the top 10 oil producers worldwide, with 96% of production originating from its richest emirate, Abu Dhabi.
The ruling family of Abu Dhabi governs several of the largest sovereign wealth funds globally, including the Abu Dhabi Investment Authority and Mubadala Investment Company, the latter being a founding partner of MGX.
These financial resources have been utilized to diversify the nation’s oil-dependent economy and could also be directed toward financing emerging AI enterprises. A report by PwC estimates that AI could contribute approximately $96 billion to the UAE’s economy by 2030, accounting for around 13.6% of its GDP.
However, financial resources are just one aspect of the situation. The critical challenge is whether this small Gulf nation can attract the necessary talent to compete with Silicon Valley.
Recent developments indicate positive trends. According to Al Olama, the number of AI professionals in the UAE increased fourfold to 120,000 between 2021 and 2023. In 2019, the UAE introduced a ‘golden visa’ initiative for IT specialists, streamlining entry for AI experts. Additionally, in May, Dubai initiated the world’s largest prompt engineering program, aiming to enhance the skills of 1 million workers over the next three years.
Despite progress, the UAE has faced scrutiny over its treatment of workers, particularly those in lower-skilled jobs. Migrant laborers make up 88% of the country’s population and have experienced various labor abuses, including extreme working conditions, exploitative recruitment charges, and wage theft, according to Human Rights Watch. In response, the UAE has enacted several labor laws to improve worker protections regarding working hours, pay, and competition.
Over the past decade, Abu Dhabi has developed into a center for AI research and education.
In 2010, New York University established a campus in Abu Dhabi, which has since focused heavily on AI. Furthermore, in 2019, the Mohamed bin Zayed University of Artificial Intelligence was inaugurated as a graduate research institution dedicated to promoting AI as a global force for positive change. Faculty from this university contributed to organizing the inaugural International Olympiad in Artificial Intelligence in August, attracting participants from over 40 countries.
“While Abu Dhabi may not directly overshadow Silicon Valley, it has the potential to emerge as a noteworthy AI hub in its own right,” noted Nancy Gleason, an advisor on AI leadership at NYU Abu Dhabi. “Its strengths lie in strategic leadership, significant investments in AI research and computational capacity, and government-led initiatives in industry. The UAE has also made educational investments that bolster institutions like the Mohamed bin Zayed University of Artificial Intelligence and NYU Abu Dhabi.”
Moreover, she added, “It’s also a wonderful place to live.”