Overview of the UAE’s AI investments

Introduction

Overview of the UAE’s AI investments and initiatives:

Current AI Market and Investments

The artificial intelligence market in the UAE was valued at $3.47 billion in 2023. It is anticipated to grow at a compound annual growth rate (CAGR) of 43.9% from 2024 to 2030.

Major AI Investments and Initiatives

1. $500 Million AI and Research Platform (February 2024)

- A $200 million initiative to offer access to state-of-the-art technology for emerging and developing countries.

- A $300 million Falcon Foundation dedicated to advancing open-source generative AI models.

2. $1.5 Billion Investment by Microsoft (April 2024)

- An investment in G42, the UAE’s leading artificial intelligence firm.

3. $100 Billion Technology Investment Firm (March 2024)

- Abu Dhabi announced the establishment of a firm with $100 billion in assets under management, focusing on AI and semiconductors.

Projected Economic Impact

1. $91.28 Billion Economic Boost by 2031

- Private sector AI investments are projected to contribute Dh335 billion ($91.28 billion) to the UAE’s economy by 2031.

2. $96 Billion Contribution to the Economy by 2030

- PwC forecasts that AI will contribute $96 billion to the UAE’s economy in 2030.

Government Initiatives

1. UAE Strategy for Artificial Intelligence (2017)

Aims to integrate AI technology across various industries.

- Establishment of regulatory 'sandboxes' for testing AI products and businesses.

Ministry of State for AI

The world's first ministry dedicated to artificial intelligence.

Key Focus Areas

1. Software Development

The software segment led the UAE AI market in 2023, accounting for 35.9% of the revenue share.

2. Machine Learning

Significant growth is expected in this segment, with investments in research and development.

3. Cloud Computing and Data Analytics

Collaborations with global tech giants such as Google to support these domains.

4. Open-source AI Model

Development of models like Falcon 40.

5. AI Applications

Focus on aerospace, food and agriculture, healthcare, security, sustainability, energy, and transport

This road map demonstrates the UAE’s commitment to becoming a global leader in AI by 2031, aligning with their Centennial 2071 Vision. The country is making substantial investments across various sectors, from research and develAI Applications: Emphasis on aerospace, food and agriculture, healthcare, security, sustainability, energy, and transportation.

Conclusion

This roadmap illustrates the UAE's dedication to emerging as a global leader in artificial intelligence by 2031, in alignment with its Centennial 2071 Vision. The nation is undertaking significant investments across diverse sectors, encompassing research and development as well as practical applications, thereby establishing itself as a center for AI innovation and economic advancement.