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The UAE turns to artificial intelligence to diversify its oil-driven economy
The United Arab Emirates is accelerating its shift toward a technology-powered future, betting heavily on artificial intelligence as it prepares for a world less dependent on oil revenues. In the desert outskirts of Abu Dhabi, construction is underway on a massive AI campus planned to become one of the largest data-center hubs outside the United States. Once fully operational, the complex is expected to deliver several gigawatts of computing power and serve billions of people across surrounding regions.
Emirati companies and global technology partners are backing the initiative, led by G42, a major AI firm based in Abu Dhabi. The first phase of the project, a one-gigawatt cluster known as Stargate UAE, will be operated with support from leading U.S. tech companies. The development follows a wave of new investments, including a multibillion-dollar commitment announced by Microsoft.
The UAE has positioned itself as a regional leader in artificial intelligence since launching a national AI strategy in 2017 and appointing the world’s first minister dedicated to the field. It has since expanded its efforts with the creation of the Mohamed bin Zayed University of Artificial Intelligence and a series of advanced research centers focusing on generative models, robotics, and chip technologies.
Officials and researchers say the country aims to reduce its reliance on foreign expertise by supporting domestic innovation and investing in homegrown technologies. Partnerships with global firms, including semiconductor manufacturers, remain crucial, especially as the UAE navigates geopolitical competition between the United States and China in the AI sector.
Despite substantial financial resources and rapid development, experts warn that long-term success is not guaranteed. The global AI landscape is evolving quickly, and countries, companies, and research institutions are competing to secure influence in the next major technological shift. For the UAE, the challenge will be to maintain its momentum and continue attracting top talent while preparing for an economic future no longer anchored in oil.
