As the artificial intelligence (AI) revolution unfolds, its influence is spreading well beyond Silicon Valley. Across the globe, from Malta to Paris, new centers for AI innovation are emerging, with the United Arab Emirates (UAE) stepping into a prominent role within the Middle East.
In a significant move, the UAE made headlines last week by participating in the largest funding round in Silicon Valley’s history, securing a staggering $6.6 billion investment from OpenAI via MGX, a state-supported technology firm specializing in AI and semiconductors. This initiative aligns with the UAE’s ambition to establish itself as a leader in the global AI landscape by 2031, driven by strategic initiatives, public outreach, and increased research funding.
Abu Dhabi, the wealthiest emirate in the UAE, recently unveiled Falcon—its inaugural open-source large language model—marking a substantial step forward in this effort. Further underscoring the UAE’s dedication to AI, Omar Sultan Al Olama was appointed as the country’s AI Minister in 2017.
Al Olama acknowledges the fierce competition the UAE faces from established powers like the United States and China, which together attracted private investments in AI technology totaling $67.2 billion and $7.8 billion, respectively, in 2023, as reported by Stanford’s Center for Human-Centered Artificial Intelligence.
In light of this competition, Al Olama emphasizes the importance of collaboration.
“I don’t think it’s going to be a zero-sum game where it’s only going to be AI that’s developed in the US, or only going to be AI that’s developed in China or the UAE,” Al Olama stated at an April event hosted by the Atlantic Council, a Washington, D.C.-based think tank. “What is going to happen, I think, is that we’re going to have centers and nodes of excellence across the world where there are specific use cases or specific domains where a country or player or a company is doing better than everyone else.”
The strengths of the UAE are clear.
Ranked among the richest nations globally, the UAE owes much of its wealth to extensive oil reserves. It stands as one of the top ten oil producers worldwide, with a remarkable 96% of that output originating from Abu Dhabi, according to the International Trade Administration.
Additionally, Abu Dhabi’s ruling family manages several of the largest sovereign wealth funds on the planet, including the Abu Dhabi Investment Authority and Mubadala Investment Company, which is a founding partner of MGX.
These funds, initially established to diversify the country’s oil revenue, are now poised to invest in emerging AI ventures. According to a report by PwC, AI could add $96 billion to the UAE’s economy by 2030, representing about 13.6% of its GDP.
However, financial backing is just one piece of the puzzle. The critical question remains whether this small Gulf nation can attract the skilled workforce necessary to rival Silicon Valley.
Recent developments indicate positive trends. Between 2021 and 2023, the UAE saw a fourfold increase in the number of AI professionals, reaching 120,000, Al Olama noted during the Atlantic Council event. In 2019, the government introduced a ‘golden visa’ program aimed at IT professionals, streamlining the entry process for AI specialists. Moreover, Dubai launched the world’s largest prompt engineering initiative in May, aiming to upskill 1 million workers over the next three years.
For its part, Abu Dhabi has become a crucial hub for AI research and education over the past decade.
In 2010, New York University established a campus in Abu Dhabi, which has increasingly focused on AI. In 2019, the Mohamed bin Zayed University of Artificial Intelligence opened, dedicated to advancing AI as a “global force for good.” Professors from this university also played a key role in organizing the inaugural International Olympiad in Artificial Intelligence in August, which welcomed participants from over 40 countries.
“Abu Dhabi may not directly surpass Silicon Valley; however, it has the potential to become a significant AI hub in its own right,” Nancy Gleason, an advisor on AI leadership at NYU Abu Dhabi and a political science professor, stated in an email to Business Insider. “Its true strengths lie in the leadership’s strategic vision, substantial investments in AI research and compute capacity, and government-led initiatives in industry. The UAE has also made strategic educational investments in higher education like the Mohamed bin Zayed University of Artificial Intelligence and NYU Abu Dhabi.”
Gleason added that, on top of all that, it’s “very nice to live here.”
With its vast resources, strategic foresight, and unwavering commitment to innovation, Abu Dhabi is not merely looking to ride the wave of AI development—it is set on carving its own path in the industry.
