Artificial intelligence (AI) and advanced technology took center stage during the September 2024 meeting between H.H Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and US President Joe Biden. Both nations recognized the immense potential of AI in driving economic growth, enhancing healthcare and education, generating job opportunities, and bolstering environmental sustainability efforts, among other areas beneficial to humanity as a whole. This high-level discussion unfolded against the backdrop of an intensifying global AI race, with countries and tech companies scrambling to allocate resources and secure their positions in the future technological landscape.
The fierce competition has unveiled a group of emerging "digital eagles," reminiscent of the Asian Tigers who capitalized on the telecommunications and information technology revolution of the 1980s. These nations - including the UAE, India, Saudi Arabia, and Brazil - have made remarkable strides in specific AI applications in recent years, despite not being traditionally at the forefront of technological innovation.
While the top-ranking countries in artificial intelligence (AI) are typically technologically advanced nations, including Western countries led by the United States, as well as China, Singapore, Taiwan, Hong Kong, and Japan, several emerging nations have made significant strides in the field. The 2024 Global AI Index by Tortoise Media highlights the rise of these "digital eagles," with notable advancements in global rankings. The United Arab Emirates (UAE) impressively climbed from 28th to 20th place, India moved up from 14th to 10th, Saudi Arabia made a substantial leap from 31st to 14th, and Brazil ascended from 35th to 30th.
The UAE's remarkable progress can be attributed to its ambitious National Strategy for Artificial Intelligence 2031, which aims to solidify the country's position as a global leader in AI applications. Indeed, the UAE has emerged as a rising global player in the field of AI, driven by several key factors. These include forging international partnerships with major companies in the field, such as Microsoft, Google, and OpenAI, as well as fostering the growth of national companies developing advanced AI technologies, like G42.
Strategic Differentiation
In pursuit of its vision to become a global leader in artificial intelligence, the UAE has implemented a National Strategy for AI that focuses on achieving excellence in specific sectors where the country possesses strong assets and promising opportunities for real added value. This targeted approach, known as a "Niche Strategy," concentrates on key industries including energy, tourism, logistics and transportation, healthcare, and cybersecurity. By applying AI to stimulate and support innovative startups within these sectors, projections indicate that it could generate up to AED 335 billion for the UAE's economy.
The National Strategy for Artificial Intelligence 2031 has outlined eight objectives related to the role and development of AI within the country:
1- Establishing the UAE as an AI destination: By supporting innovative research projects and adopting emerging technologies in this field.
2- Increasing the UAE's competitiveness in priority areas: Specifically in the aforementioned sectors, contributing to strengthening its competitiveness regionally and globally.
3- Developing a fertile ecosystem for AI: By creating a local environment that encourages the adoption of AI technologies, providing funding, knowledge, and strategic support, thus creating opportunities for the establishment of new companies capable of developing globally leading products and services.
4- Adopting AI in customer service: Particularly in education, health, and transportation, which can improve citizens’ quality of life and enhance government performance.
5- Attracting and training talent for future AI jobs: By preparing specialized human cadres trained in the latest technologies to ensure the continuity of development and meet the needs of the future market.
6- Bringing world-leading research capabilities to work in target sectors: Investing in AI research and development is a crucial first step towards achieving leadership. This can be accomplished by providing a research environment that will attract global talent, investments, and advanced scientific research to further develop AI.
7- Providing data and basic infrastructure for AI: The UAE has a competitive advantage over other countries in terms of data collection and sharing. It is a global center that brings together more than 200 nationalities. Given this unique cultural mix, the data sets the country possesses are ideal for developing AI systems that can be used globally. The UAE recognizes that the oil of the future is data, it is therefore investing in creating infrastructures that serve as testing platforms for AI.
8- Ensuring strong governance and effective regulation: Governing AI globally faces significant challenges due to the rapid developments in this field. However, the increasing global interest in AI governance presents an opportunity for joint government cooperation to ensure effective regulation of AI at both the local and international levels.
To achieve these objectives, the UAE appointed the first Minister of State for Artificial Intelligence in 2017 to develop a comprehensive roadmap for attaining excellence in AI and its applications, and strengthen the country's position as a global hub for advanced technology and innovation.
To that effect, the Ministry of State for Artificial Intelligence collaborates with official institutions, such as the Government Development Authority, which brings more than 30 government agencies in a digital framework that includes the AI Office, and the Dubai Digital Authority. The latter is the government agency responsible for developing and implementing digital transformation and cybersecurity strategies in Dubai. Its initiatives include ethical AI tools and the AI lab, in addition to other institutions and research centers.
Diverse International Partnerships
To solidify its position as a rising power in the realm of artificial intelligence, the UAE has established partnerships with several countries, notably the United States, China, and France, while also launching initiatives in collaboration with major global technology companies. A significant milestone in this endeavor occurred in September 2024 when the UAE and the US announced joint principles for cooperation in the field of AI. These principles, endorsed by US National Security Advisor Jake Sullivan and H.H. Sheikh Tahnoun bin Zayed Al Nahyan, Deputy Governor of Abu Dhabi and National Security Advisor, aim to enhance collaboration between the two nations across various domains.
The scope of this cooperation encompasses several key areas: developing regulatory frameworks, promoting the safe and reliable deployment of sensitive and emerging technologies, increasing support for joint research between the public and private sectors, and facilitating exchanges between academic institutions in both countries. However, the UAE's efforts extend beyond forging international partnerships. The nation is also focused on establishing research and development centers, fostering startups, creating incubators, and strategically investing in major technology companies that align with the country's interests in the AI sector.
These multifaceted initiatives can be illustrated as follows:
1- International partnerships in AI: The UAE's international partnerships in AI extend to various applications such as defense, healthcare, and energy. For instance, a joint AI Center of Excellence was established between IBM and Mohamed bin Zayed University of Artificial Intelligence (MBZUAI). Initiatives like the AI Task Force under the US-UAE Business Council have also been launched. Moreover, collaborations with companies like Honeywell have led to the provision of AI-based asset monitoring solutions to enhance ADNOC's energy management efficiency. Beyond the US, the UAE has formed partnerships with other countries, notably China and France. Chinese tech giants like Huawei and Alibaba are involved in AI projects within the UAE, while French technology companies like Thales are active in the UAE's defense and space sectors related to AI.
2- AI research and development centers: The UAE has established research centers such as the MBZUAI in Abu Dhabi, which focuses on AI education and research, making it a hub for international cooperation and innovation. The Technology Innovation Institute (TII) serves as a global center for applied research in AI and is the applied research arm of the Advanced Technology Research Council (ATRC). Other notable institutions include the Dubai AI and Web3 Academy, and the Dubai AI Center.
3- Startups and incubators: The UAE has created an ecosystem to support AI startups through government-backed programs like Dubai Future Accelerators and Hub71. These platforms aim to encourage local AI innovation and attract global startups to develop solutions in the UAE.
4- Investments in global AI companies: The UAE has invested in both startups and established AI companies worldwide. A notable example is Mubadala Investment Company, which has allocated significant funds to global AI projects, including partnerships with international companies in Silicon Valley.
Significant National Capabilities
The UAE government has invested in large national companies to advance the development of this nascent industry. The government has also invested what is estimated to reach approximately 9 billion US dollars by the end of 2024 in AI infrastructure and aims to increase said investments to 50 billion dollars by 2025. PwC estimates that AI will contribute approximately 96 billion dollars to the UAE's economy by 2030, equivalent to about 14% of its gross domestic product.
In recent years, the UAE has sought to establish several companies capable of developing AI-based products locally. These companies include:
1- G42: A holding company comprising 7 companies operating in AI, data centers, energy, healthcare, surveillance, and biotechnology. Microsoft announced a $1.5 billion investment in G42 in the field of AI in April 2023.
2- The Applied AI Company (AAICO): A national company providing supervised AI systems that improve productivity in critical industries such as healthcare, insurance, pharmaceuticals, and banking. It exports AI products to the United States, the United Kingdom, and Europe.
3- Core42: Provides end-to-end solutions including cloud and high-performance computing, such as the "Condor Galaxy" project, which uses a network of nine interconnected supercomputers.
4- M42: Combines the technologies of G42 Healthcare and the facilities and services of Mubadala Health to provide personalized and precise healthcare using AI, genomics, and digital services.
5- Bayanat: Provides specialized geospatial intelligence solutions and recently announced its intention to merge with Yahsat into a company called Space42, which will provide a comprehensive system that includes remote geospatial analysis using satellites.
6- AIQ: Develops advanced AI-based tools to support digital transformation in the oil and gas sector and enhance sustainability.
7- Khazna: A joint venture with e& (formerly Etisalat) - the largest data center provider in the region and seeks to expand globally to meet the growing demand for advanced AI infrastructure.
8- Presight: An AI and predictive analytics company that combines big data and machine learning to improve decision-making and efficiency in cities and companies.
9- AI71: A new AI-focused company specializing in various fields using generative AI models.
The UAE government has started employing AI in various sectors such as healthcare, smart cities, and transportation, including AI-based traffic management systems, medical diagnoses, and public sector services. AI technologies have been integrated into daily government operations to improve efficiency and service delivery, and they also contribute to the UAE's national security by producing reliable and highly secure local technologies.
The UAE is thus transitioning from being an importer of these technologies to a producer and exporter in the AI development market, characterized by reliability and effectiveness.
Existing Opportunities and Potential Challenges
Amidst this global AI race, a set of opportunities and challenges are also emerging. These include:
1- Attracting talent and expertise: There is still a need to attract international talent and develop local cadres. The job market requires training local human cadres with the technical and knowledge skills necessary to work in this field, ensuring continued growth and reducing reliance on foreign expertise.
2- Data infrastructure: Data is the foundation for developing any effective AI system. The challenge, therefore, lies in the need to provide an integrated and reliable data environment that supports the development of AI systems and applications.
3- Global competitiveness: Countries like the United States, China, and Russia are seeking to dominate AI. Therefore, the UAE needs to maintain continuous innovation and international partnerships to ensure its ability to compete as a rising power.
4- Local manufacturing of smart chips: Very few companies have the capabilities and capacity to manufacture the smart chips used to power large AI systems. It may be appropriate to attract these companies to build factories within the country to achieve self-sufficiency before exporting them to foreign markets.
5- Environmental sustainability: Operating AI systems requires a significant amount of energy. In line with the country's sustainability goals, the move to generate electricity through the Barakah Nuclear Power Plant is a promising opportunity to expand the use of AI while adhering to environmental goals.
6- AI ethics: With the increasing reliance on AI technologies in various sectors, ethical issues arise, such as the impact of AI on the job market and the discrimination that may result from systems based on algorithms. This raises the need to develop clear policies to ensure AI does not negatively impact vulnerable groups.
7- Legislation and governance: Governing AI is a global challenge as it is difficult for countries to keep pace with the speed at which this field is developing. This highlights the need for clear legislation and laws to ensure the safe and ethical use of these technologies.
In the global race to develop AI technologies, the United Arab Emirates (UAE) stands poised to emerge as a formidable new power. Leveraging its cutting-edge infrastructure, world-class research centers, innovative companies, and supportive incubators, the UAE is strategically positioned for success. Furthermore, with its forward-thinking legislation and dedicated government institutions, the nation is well-equipped to navigate the path towards a safer and more prosperous AI-driven future.
