AI Investments: a new market with massive returns
Artificial Intelligence (AI) is described as the most influential technology of the 21st century, rivaling the importance of inventions like electricity and the internet, with the potential to cause radical change worldwide.
Naturally, companies and governments are racing to lead this AI revolution and are spending heavily on its investment. Investopedia indicates that in 2024, a group of countries recorded the highest percentage on the list of global private investment in AI, led by the United States, China, the UK, Sweden, Canada, France, Germany, the UAE, Australia, South Korea, India, the Netherlands, Japan, and Italy.
This massive global investment reveals huge figures in AI. A report by the British newspaper The Guardian estimates the value of data centers at three trillion dollars. These vast repositories become the central nervous system for AI tools, supporting the training and operation of this technology in which investors have poured vast sums.
Belief in AI is not limited to financial and political circles and technology companies but also includes the societies that host its supporting infrastructure. According to The Guardian, AI revenue is expected to grow from $45 billion last year to a trillion dollars by 2028.
Various countries, including the UAE, have entered a race to consolidate their position as a global hub for AI through new horizons for investment and competitiveness, focusing on advanced infrastructure.
Employing Artificial Intelligence
Building international partnerships represents a key part of the UAE’s strategy to enhance its leadership in the field of AI, and this sector is one of the most prominent sectors of the UAE’s strategic partnership with the European Union.
In a post on the “X” platform following a call with Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, regarding the launch of strategic partnership negotiations with the EU, European Commission President Ursula von der Leyen indicates that “the UAE plays a pivotal economic role and this agreement will open a new era of cooperation in fields such as investment, energy, digital transformation, and the transition to clean energy.”
AI represents one aspect of these investments. The Future Center for Advanced Research and Studies says that “international partnerships particularly serve the achievement of various goals of the UAE Strategy for Artificial Intelligence, which aims for the country to become a global leader in employing AI by 100% by 2031 in various services and data analysis; thus enhancing productivity and reducing operational costs.”
The Center monitors these goals in “the UAE government becoming the first globally in investing in AI in its various vital sectors, creating a new promising market in the region with high economic value, supporting private sector initiatives and increasing productivity, in addition to building a strong base in the field of research and development, and investing in the latest AI technologies and tools and applying them in various fields of work with high-level efficiency, investing all energies optimally, and exploiting available human and material resources and capabilities in a creative way.”
Hence, “the UAE has become one of the most attractive countries for specialized skills in AI, with the number of specialists in this field increasing by about 40% since 2022,” according to the Center’s report, which cites “the UAE achieving a leading position within the list of the top 10 countries globally in terms of the number of AI companies per million inhabitants, according to the Global AI Competitiveness Index issued by the International Finance Forum (IFF) and Deep Knowledge Group.”
To achieve this, Deutsche Welle indicated last February the “signing by the UAE and France of a framework for cooperation in the field of AI that aims to plan an investment of between 30 to 50 billion euros in establishing an AI complex with a capacity of 1 gigawatt in France. This complex is scheduled to consist of 35 data collection centers to secure the massive computing capabilities required by AI.”
The framework also seeks to explore new opportunities for cooperation in projects and investments that support the use of advanced chips and data center infrastructure and the development of cadres, in addition to establishing “virtual data embassies” to enable AI infrastructure and cloud computing and purchasing advanced chips in both France and the UAE.
The Future Center for Advanced Research and Studies also sees that “the UAE-French partnership in the field of AI provides a strong impetus for developing digital infrastructure in both countries, where each benefits from massive investments to establish advanced AI complexes, which enhances their ability to process big data and develop cloud computing technologies, and boosts the development of Emirati cadres, thus supporting the nurturing of a new generation of specialists in AI, and reinforces the UAE’s position as a leading global hub in this field.”
Silicon Valley
A report by the “Modern Policy” platform describes the AI complex project in the UAE with a capacity of 5 gigawatts as “the largest AI facility outside the United States,” but it is not just another infrastructure achievement, but rather a global “Silicon Valley” that expresses Emirati leadership.
The report, published last May, continues to describe the project, saying: “In Abu Dhabi, a quiet but influential revolution is unfolding. The inauguration of the AI complex is a signal of a decisive shift in global technological leadership, as the UAE assumes a leading regional and global position in the field of AI.”
The complex is being developed with a capacity of 5 gigawatts, spanning an area of ten square miles, by the leading Emirati AI company G42, in cooperation with major US companies, under the umbrella of the newly launched Strategic Partnership to Accelerate AI between the United States and the UAE. The complex aims to provide computing power for US supercomputing companies and offer low-latency services to nearly half of the world’s population within a radius of 3200 kilometers from the UAE.
On the ground, work on the first phase has already begun, which is a 1-gigawatt data center that “Modern Policy” considers the consolidation of a digital corridor linking the West and the Global South. Once completed, it will provide infrastructure rivaling any global AI center, supported by a sustainable mix of nuclear, solar, and gas energy. It will also include a science complex designed to promote cutting-edge research and innovation in the field of AI, and this is not just a regional project, but a global message.”
The report recalls the Emirati journey in the field of AI, which is the fruit of strategic building over the past decade, noting that “in 2017, the UAE became the first country in the world to appoint a Minister of State for Artificial Intelligence, and in the same year, it launched the AI Strategy, which focuses on integrating the sector into all vital sectors, from education and energy to healthcare and transport.” In 2019, the Mohamed bin Zayed University of Artificial Intelligence opened, which is the first university in the world specialized in AI at the postgraduate level.
“Modern Policy” adds: “In this new AI system, the UAE is distinguished by a dual position. On the one hand, it demonstrates its strategic autonomy by investing heavily in local capabilities through the G42 group, the Mohamed bin Zayed AI initiative, and sovereign partnerships. On the other hand, it works through global alliances, especially with the United States, to ensure interoperability, trust, and access to advanced technologies.”
Investment for Humanity
The UAE also presents itself as an investor with humanitarian goals, as Reuters recalls the UAE’s announcement last November of “its investment of one billion dollars to expand AI infrastructure and the services that support it in Africa, with the aim of helping countries achieve national development priorities.”
A step in which UAE Minister of State at the Ministry of Foreign Affairs Saeed bin Mubarak Al Hajeri sees that it will bring AI technology to fields such as education, healthcare, and climate adaptation within Africa, which he emphasized during his participation in the G20 leaders’ summit in Johannesburg, South Africa.
Regarding this move, Al Hajeri says: “We do not consider AI just a future industry, but we consider it a cornerstone in the future of humanity. Therefore, the UAE is actively working to accelerate the pace of innovation to enhance productivity and drive significant progress in the global economy, with a strong commitment to developing responsible and inclusive AI for the benefit of all.”
According to Reuters, “the UAE is one of the largest investors in Africa. Its bilateral trade in 2024 amounted to about 107 billion dollars, an increase of 28 percent over the previous year, and its total investments in Africa amounted to more than 118 billion dollars between 2020 and 2024. It is investing heavily in AI, as it plans to build one of the largest data centers in the world on its territory using US technology.”