UAE Invests Heavily in AI to Diversify Economy

The United Arab Emirates is investing heavily in artificial intelligence to diversify its economy, which has long relied on oil. A massive AI campus is under construction in the Abu Dhabi desert, spanning an area roughly a quarter the size of Paris. The campus will house data centers powered by five gigawatts of electricity, making it the largest facility of its kind outside the United States.

The project is being led by G42, an Emirati AI giant, and will provide storage and computing capacity to a vast region covering up to four billion people. The UAE has been betting big on AI since 2017, naming the world’s first AI minister and unveiling a national AI strategy. The country has invested over $147 billion in AI since 2024, including a significant investment in a one-gigawatt AI data center in France.

The UAE’s push into AI is driven by its desire to reduce its reliance on oil, which has fueled the country’s growth since the 1960s. With the global demand for oil expected to decline, the UAE is seeking to fill the gap with new technologies. The country has made significant strides in AI research and development, including the launch of the world’s first AI-dedicated university, Mohamed bin Zayed University of Artificial Intelligence.

The UAE’s advantages in the AI race include its wealth, energy resources, and strategic location, which make it an attractive hub for international talent and investment. The country has also engaged in a balancing act between the US and China, seeking to import vital technologies, including specialist chips, while maintaining its independence. Recently, the US approved the export of advanced Nvidia chips to the UAE, a significant boost to the country’s AI ambitions.

Despite its progress, the UAE’s success in the complex and rapidly evolving AI sector is far from guaranteed. The country faces intense competition from established leaders like the US and China, and the outcome of its investments is uncertain. However, with its significant resources and strategic location, the UAE is well-positioned to play a major role in the global AI landscape. As the country continues to invest in AI research and development, it is likely to remain a key player in the sector for years to come.