The UAE has been making waves recently in the technology world. A $1.5 billion deal between American tech giant Microsoft and Abu Dhabi’s AI champion, G42, is a bold move to boost the UAE’s technology clout, especially in artificial intelligence.
With its vast oil wealth and energy transition, the UAE has certainly set its sights on becoming a global tech superpower. But can the country pull off this feat, and what might this mean for the region and the global economy?
From oil to algorithms
The UAE’s devotion to AI is evident in its decision to appoint Omar Sultan Al Olama as the world’s first Minister of AI, in 2017. This move signalled the UAE’s push to embrace technology as a key growth driver for its economy.
This reflected in the Gulf state's investments and fifth place international ranking for AI competitiveness last week in the Global Vibrancy Tool 2024 report conducted. The UAE followed the US, China, the UK and India in the Stanford Institute for Human-Centered AI study, and placed ahead of countries like France, South Korea, Germany, and Japan.
The top-down approach to AI regulation could be a big asset. A centralised approach allows the UAE to implement AI regulations more quickly and consistently.
The UAE’s ability to enforce data governance from a national level may give it an edge in attracting companies and talent seeking a stable environment for AI development.
The nation's wealth and investment ability is a big driver behind its AI development. With some $1.4 trillion in assets collectively managed by its top sovereign wealth funds, the UAE leads the Gulf region in terms of financial firepower. These funds have accelerated investments in technology, helping to diversify the UAE’s economy and reduce reliance on oil.
For now, the nation’s energy investments remain heavily influenced by hydrocarbons. But undoubtedly, the UAE aims to transition to a knowledge-based economy, one driven by digital services, including AI.
In that transition, the nation faces competition from a number of countries, who are also pouring resources into their AI and technology sectors.
Saudi Arabia is planning “Project Transcendence”, an endeavour designed to make the kingdom a major AI hub.
Backed by up to $100 billion from the powerful Public Investment Fund (PIF), the plan is to build up the infrastructure, back homegrown AI startups, and pull in global tech heavyweights to set up shop. The PIF has already struck a partnership with Google, focusing on Arabic language AI models.
The kingdom's push for AI could compete with the UAE's ambitions as they both seek to attract the private capital and talent they need in a highly competitive sector.
To sustain growth, the UAE needs to solicit more private capital through attractive fiscal policies and a stronger capital market. Although the nation has a promising IPO pipeline, higher borrowing costs have contributed to a slowdown in private sector investments, with government spending expected to offset this decline.
The UAE’s push towards AI is part of a broader strategy of economic diversification, but strong population growth and company formation can put pressure on a country’s infrastructure.
For example, Dubai’s population surged by more than 25,700 in the first quarter of 2024, bringing the total to nearly 3.7 million residents. Additionally, the city welcomed more than 34,000 new companies as members of the Dubai Chamber of Commerce in the first half of the year, reflecting a 5 per cent year-over-year growth.
This influx of talent and businesses that are helping build the country's tech and knowledge economy highlights the need for expansion and upgrades to infrastructure, particularly transportation.
The government has already announced a review of infrastructure capacity and investments. In March Abu Dhabi approved 144 projects across the emirate with a budget of $17.97 billion to enhance housing, education, tourism and more. This is in addition to another more than $10 billion infrastructure investment project the following month.
In October, Dubai revealed its largest government budget at $74 billion, of which half will be spent on infrastructure such as roads, bridges, transportation systems and renewable energy facilities.
Gulf’s new frontier
If the UAE succeeds in becoming a global AI superpower, the implications for the Gulf region could be huge.
It could lead to both collaboration and competition among neighbouring countries, all of which are seeking to diversify their economies through technology. Saudi Arabia, Qatar and Kuwait have all made AI an economic priority, and the UAE’s success could set a precedent for other resource-rich nations looking to lead in technology.
The UAE’s ability to create and retain AI-driven unicorns – companies valued at over $1 billion – will be a key measure of its success. The country has set a stretching target of becoming home to 20 unicorns by 2031.
Other than G42, other prominent unicorns in the UAE include Vista Global, which uses AI in the aerospace sector.
Despite the UAE’s progress in building a vibrant tech ecosystem, there are still questions about how data is collected, stored and used. To build trust with international companies and investors, countries and firms need to ensure that their data practices are transparent and secure.
European countries like Estonia have shown how technology can be harnessed for the public good, offering lessons for the UAE in building a digital society that is trusted. The country’s journey will be closely watched by other nations looking to diversify their economies, as the race to lead in AI heats up.
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
A cryptocurrency primer for beginners
Cryptocurrency Investing for Dummies – by Kiana Danial
There are several primers for investing in cryptocurrencies available online, including e-books written by people whose credentials fall apart on the second page of your preferred search engine.
Ms Danial is a finance coach and former currency analyst who writes for Nasdaq. Her broad-strokes primer (2019) breaks down investing in cryptocurrency into baby steps, while explaining the terms and technologies involved.
Although cryptocurrencies are a fast evolving world, this book offers a good insight into the game as well as providing some basic tips, strategies and warning signs.
Begin your cryptocurrency journey here.
Available at Magrudy’s , Dh104
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
Springsteen: Deliver Me from Nowhere
Director: Scott Cooper
Starring: Jeremy Allen White, Odessa Young, Jeremy Strong
Rating: 4/5
How Tesla’s price correction has hit fund managers
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.
It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.
The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.
Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.
Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.
He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.
AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”
A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.
Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.
Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.
Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.
By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.
Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.
In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”
Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.
She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.
Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
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The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Royal wedding inspired menu
Ginger, citrus and orange blossom iced tea
Avocado ranch dip with crudites
Cucumber, smoked salmon and cream cheese mini club sandwiches
Elderflower and lemon syllabub meringue
More from Aya Iskandarani
Biography
Favourite book: Zen and the Art of Motorcycle Maintenance
Holiday choice: Anything Disney-related
Proudest achievement: Receiving a presidential award for foreign services.
Family: Wife and three children.
Like motto: You always get what you ask for, the universe listens.
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
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COMPANY%20PROFILE
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if you go
Getting there
Etihad (Etihad.com), Emirates (emirates.com) and Air France (www.airfrance.com) fly to Paris’ Charles de Gaulle Airport, from Abu Dhabi and Dubai respectively. Return flights cost from around Dh3,785. It takes about 40 minutes to get from Paris to Compiègne by train, with return tickets costing €19. The Glade of the Armistice is 6.6km east of the railway station.
Staying there
On a handsome, tree-lined street near the Chateau’s park, La Parenthèse du Rond Royal (laparenthesedurondroyal.com) offers spacious b&b accommodation with thoughtful design touches. Lots of natural woods, old fashioned travelling trunks as decoration and multi-nozzle showers are part of the look, while there are free bikes for those who want to cycle to the glade. Prices start at €120 a night.
More information: musee-armistice-14-18.fr ; compiegne-tourisme.fr; uk.france.fr
RESULTS
1.30pm Handicap (PA) Dh 50,000 (Dirt) 1,400m
Winner AF Almomayaz, Hugo Lebouc (jockey), Ali Rashid Al Raihe (trainer)
2pm Handicap (TB) Dh 84,000 (D) 1,400m
Winner Karaginsky, Tadhg O’Shea, Satish Seemar.
2.30pm Maiden (TB) Dh 60,000 (D) 1,200m
Winner Sadeedd, Ryan Curatolo, Nicholas Bachalard.
3pm Conditions (TB) Dh 100,000 (D) 1,950m
Winner Blue Sovereign, Clement Lecoeuvre, Erwan Charpy.
3.30pm Handicap (TB) Dh 76,000 (D) 1,800m
Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.
4pm Maiden (TB) Dh 60,000 (D) 1,600m
Winner Bladesmith, Tadhg O’Shea, Satish Seemar.
4.30pm Handicap (TB) Dh 68,000 (D) 1,000m
Winner Shanaghai City, Fabrice Veron, Rashed Bouresly.
Company profile
Name: Steppi
Founders: Joe Franklin and Milos Savic
Launched: February 2020
Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year
Employees: Five
Based: Jumeirah Lakes Towers, Dubai
Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings
Second round raised Dh720,000 from silent investors in June this year
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
Brief scores:
Day 1
Toss: India, chose to bat
India (1st innings): 215-2 (89 ov)
Agarwal 76, Pujara 68 not out; Cummins 2-40
More coverage from the Future Forum
The Bio
Favourite holiday destination: Either Kazakhstan or Montenegro. I’ve been involved in events in both countries and they are just stunning.
Favourite book: I am a huge of Robin Cook’s medical thrillers, which I suppose is quite apt right now. My mother introduced me to them back home in New Zealand.
Favourite film or television programme: Forrest Gump is my favourite film, that’s never been up for debate. I love watching repeats of Mash as well.
Inspiration: My late father moulded me into the man I am today. I would also say disappointment and sadness are great motivators. There are times when events have brought me to my knees but it has also made me determined not to let them get the better of me.
Tips for taking the metro
- set out well ahead of time
- make sure you have at least Dh15 on you Nol card, as there could be big queues for top-up machines
- enter the right cabin. The train may be too busy to move between carriages once you're on
- don't carry too much luggage and tuck it under a seat to make room for fellow passengers
RUGBY CHAMPIONSHIP FIXTURES
September 30
South Africa v Australia
Argentina v New Zealand
October 7
South Africa v New Zealand
Argentina v Australia
The specs
Engine: 2.5-litre, turbocharged 5-cylinder
Transmission: seven-speed auto
Power: 400hp
Torque: 500Nm
Price: Dh300,000 (estimate)
On sale: 2022
GROUPS AND FIXTURES
Group A
UAE, Italy, Japan, Spain
Group B
Egypt, Iran, Mexico, Russia
Tuesday
4.15pm: Italy v Japan
5.30pm: Spain v UAE
6.45pm: Egypt v Russia
8pm: Iran v Mexico