Dubai has launched a new platform powered by generative artificial intelligence, which will serve as a "digital city concierge" offering a wide variety of services and information within the emirate.
The Dubai AI initiative, which is now live on the dubai.ae website and the Dubai Now mobile application, is a ChatGPT-style service with an interface that is able to answer queries on 15 sectors, including tourism, aviation, healthcare, entertainment and education.
Dubai AI, which is being positioned as a "unified, seamless channel", is planning to expand these sectors with the help of the public and private sector, Matar Al Hemeiri, chief executive of the Digital Dubai Government Establishment at Digital Dubai, said during the launch of the service at the Dubai Assembly for Generative AI on Wednesday.
"Digital transformation is not new to Dubai, but we have a lot to be done. We are inviting all our partners and work with us to co-create these use cases," he said.
Dubai has taken a leadership role in the rollout of smart services, governance and regulation over the past two decades. In 2000, Dubai Internet City was launched, alongside the emirate's smart services and eGovernment strategy, followed by M Government in 2013.
In 2014, the Smart Dubai platform was launched, helping oversee key and emerging technology components, including smart cities, blockchain and data law.
The Paperless Dubai initiative, aimed at making government entities paper-free, was launched in 2018, helping to save about Dh900 million ($245 million) in government costs and an estimated 39,000 trees through 2021.
In 2021, Digital Dubai was created, with a mandate to develop and oversee the implementation of policies and strategies that govern all matters related to the emirate's information technology, data, digital transformation, and cyber security.
It brings together the expertise of four entities – the Dubai Electronic Security Centre, Dubai Statistics Centre, Dubai Data Establishment and Smart Dubai Government Establishment.
Last year, the UAE government announced its Digital Economy Strategy with the goal of increasing the contribution of the sector to the GDP by 20 per cent over the next 10 years, up from 9.7 per cent in 2022, as it seeks to leverage cutting-edge technologies and attract high-skilled talent.
Meanwhile, ChatGPT, the generative AI platform created by Microsoft-backed OpenAI, became a sensation because of its advanced conversational capabilities.
Its emergence sparked a race between the biggest technology companies and personalities, including Microsoft, Google, Amazon, Oracle and Elon Musk.
The launch of Dubai AI is part of efforts to "drastically change" the way the government offers its services to the emirate's residents, said Moza Suwaidan, chief executive of the digital applications and platforms sector at the Digital Dubai Government Establishment.
"Our role in the future will be more focused on enablement and regulations as opposed to operating different services and systems," she said.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Pots for the Asian Qualifiers
Pot 1: Iran, Japan, South Korea, Australia, Qatar, United Arab Emirates, Saudi Arabia, China
Pot 2: Iraq, Uzbekistan, Syria, Oman, Lebanon, Kyrgyz Republic, Vietnam, Jordan
Pot 3: Palestine, India, Bahrain, Thailand, Tajikistan, North Korea, Chinese Taipei, Philippines
Pot 4: Turkmenistan, Myanmar, Hong Kong, Yemen, Afghanistan, Maldives, Kuwait, Malaysia
Pot 5: Indonesia, Singapore, Nepal, Cambodia, Bangladesh, Mongolia, Guam, Macau/Sri Lanka
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