Following Microsoft’s $1.5B investment in Abu Dhabi’s artificial intelligence and cloud company G42, attention is now on the Middle East’s growing position as a regional leader in global technology.
Led by the UAE and Saudi Arabia, this momentum has attracted interest from Oracle, Google, and Amazon, underlining increasing investor confidence in the region. This growing financial backing from, and relations with, the West, known as the home of the world’s technology industry leaders, further strengthens the region’s appeal.
While discussions often revolve around these broader trends, there’s a quieter, yet significant, impact unfolding in the UAE. Advanced tech companies are experiencing notable growth in local stock markets, signalling the expansion of the country’s advanced AI industry.
After the Microsoft deal this month, key players like Bayanat and Presight AI – among the UAE’s largest advanced tech companies – saw significant stock boosts, reflecting investor sentiment. Thomas Pramotedham, CEO of G42 unit Presight AI, highlighted the tangible benefits of the partnership, providing access to Microsoft’s vast AI and cloud computing ecosystem. This enables companies to expand across various sectors, benefitting areas such as government services, finance, energy, agriculture, and security.
Moreover, Hasan Al Hosani, CEO of G42’s geospatial technology arm Bayanat, emphasized the injection of essential capital and trust from the partnership. This vote of confidence has inspired investors to take a closer look at UAE companies, both publicly traded and privately held.
The trend of investments in Middle East tech is on the rise, with notable developments such as Microsoft’s plans for a new data centre in Saudi Arabia and Alibaba Cloud’s extended partnership with Dubai Holding. Chinese tech giant Tencent Holdings also aims to enhance its cloud services in the UAE and Saudi Arabia, highlighting the region’s appeal for global tech investment.
These investments align with the UAE’s AI strategy unveiled in October 2017, aiming to integrate smart digital solutions across sectors and foster home-grown AI funds and leading companies.
The UAE’s rise as a global AI leader is evident, but there’s still room for growth compared to other regions. However, the region’s potential for global prominence is attracting attention, with various partnerships and investments underway. The recent surge in US interest, exemplified by Microsoft’s commitment, is reshaping the region’s technology landscape and positioning the Middle East as an international hub for technological breakthroughs.
