The United Arab Emirates is investing heavily in artificial intelligence to diversify an economy long dependent on oil. A massive AI campus is under construction in the Abu Dhabi desert, covering an area roughly a quarter the size of Paris. The site will house data centers powered by five gigawatts of electricity, making it the largest facility of its kind outside the United States. Led by Emirati AI giant G42, the campus will provide storage and computing capacity for a region encompassing up to four billion people.
The UAE’s commitment to AI dates back to 2017, when it appointed the world’s first AI minister and unveiled a national AI strategy. Since 2024, the country has invested more than $147 billion in AI, including a significant stake in a one‑gigawatt AI data center in France. This push is driven by a desire to reduce reliance on oil, which has underpinned growth since the 1960s, as global oil demand is expected to decline.
Significant strides have been made in AI research and development, highlighted by the launch of the world’s first AI‑dedicated university, Mohamed bin Zayed University of Artificial Intelligence. The UAE’s wealth, abundant energy resources, and strategic location make it an attractive hub for international talent and investment. At the same time, the country balances relations with the United States and China, seeking to import vital technologies—such as specialist chips—while maintaining independence. A recent U.S. approval for the export of advanced Nvidia chips to the UAE marks a notable boost to its AI ambitions.
Despite these advances, success in the rapidly evolving AI sector is far from guaranteed. The UAE faces intense competition from established leaders like the United States and China, and the returns on its investments remain uncertain. Nevertheless, with substantial resources and a strategic geographic position, the UAE is well‑placed to play a major role in the global AI landscape and is likely to remain a key player in the sector for years to come.
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