AI Set to Revive UAE’s Skyscraping Tech Ambitions Beyond Fossil Fuels

Dubai, the glittering city on the edge of the Arabian desert, reflects the UAE’s bold, tech-driven ambitions. As the nation looks beyond fossil fuels, it has set its sights firmly on becoming a global leader in artificial intelligence (AI). Among its boldest initiatives is the plan to use AI to draft and amend laws, aiming to speed up the legislative process by up to 70%. Overseen by the newly established Regulatory Intelligence Office, this system will comb through vast databases of laws, court rulings, and government services to proactively suggest updates. Officials say the AI will also monitor the real-world impact of legislation, enabling real-time adjustments. However, experts have voiced concerns about AI’s tendency to generate unreliable outputs and its potential challenges in interpreting complex legal concepts.

Despite these risks, the UAE is charging ahead, making AI a national priority with massive investments. Through its new tech investment arm, MGX — a $100 billion sovereign wealth vehicle — the country is funding AI infrastructure projects, including data centers and chip production facilities. The UAE’s centralized governance model allows for rapid technological experimentation, a feat harder to replicate elsewhere.

Speaking at Dubai’s "Machines Can See" summit, Hamad Obaid Al Mansoori, Director General of Digital Dubai, outlined future plans where AI agents and digital avatars could perform everyday tasks on behalf of citizens, such as applying for permits or licenses. This human-centric AI model is expected to reshape public services. Omar Sultan Al Olama, UAE Minister of State for AI, Digital Economy, and Remote Work Applications, emphasized that maintaining leadership in AI requires constant innovation, likening the race to survival in the wild: "When the sun comes up in Dubai, you’d better be running."

Backing these ambitions with concrete actions, the UAE launched MGX in March 2024, spearheaded by Mubadala and AI giant G42. The government has also established a $10 billion AI venture capital fund. Earlier, the state-run Technology Innovation Institute introduced Falcon, a large language model (LLM), with smaller models under development. G42 also unveiled Nanda, a Hindi-language LLM, while Mubadala invested in the global AI company Anthropic.

Meanwhile, non-AI sectors are being mobilized to support the AI ecosystem. Telecom giant E& is building a 45,000-km undersea cable connecting South Asia, Africa, and the UK. G42’s Khazna is expanding data infrastructure, and Mubadala recently invested in American data center developer Yondr. The UAE is also in talks with TSMC, the world’s largest chipmaker, about establishing a semiconductor foundry in the Emirates.

However, geopolitical tensions between the US and China pose risks. Many Emirati firms depend on American technology and capital, yet also maintain significant ties with Chinese suppliers. Navigating this delicate balance will be crucial as Abu Dhabi continues its aggressive push towards technological leadership, echoing broader global challenges faced by tech-focused administrations worldwide.