For Microsoft in recent years, the road to AI prosperity and breakthroughs goes straight through the UAE. That’s the big message from the technology giant’s AI tour in Dubai, where the company’s vision for artificial intelligence was on full display.
“We’re thoughtful about why the UAE is a special place for this,” said Naim Yazbeck, Microsoft's UAE general manager, to a packed exhibition hall at Atlantis The Palm in Dubai, on Thursday.
“This will be a partnership for decades to come, and we’re proud of it,” Mr Yazbeck added. He explained that Microsoft's interest in the UAE revolves around the country's early government interest and leadership in AI, the diversity of technology investments − as well as the UAE's focus on training residents to make the most of the technology.
Several weeks before Microsoft's AI Tour in Dubai, Doug Dawson, the company's vice president of global communications, spoke to The National about Microsoft's affinity for the UAE.
“It's a growing hub of innovation,” said Mr Dawson. “The UAE was very proactive in making AI investments.”
Also in terms of investments, Microsoft made a significant splash in both the Middle East and in technology circles in 2024, when it announced a $1.5 billion investment in UAE artificial intelligence and cloud company G42.
Also in 2024, the technology giant, based in Redmond, Washington state, also opened its first Middle East AI for Good Lab in the UAE capital of Abu Dhabi.
At the Dubai event, Charles LaManna, Microsoft's corporate vice president of business and industry for the company's Copilot division checked out exactly how Microsoft technology is being used throughout the UAE by government entities and companies such as Alef, First Abu Dhabi Bank and Al Futtaim.
Wael AbuRizq, artificial intelligence and advanced analytics adviser with the Department of Government Enablement told Mr Lamanna that 300,000 people have used Abu Dhabi's TAMM government services AI assistant in the first two months since its launch.
“We are moving away from large language models to large action models,” said Mr AbuRizq, explaining the technological underpinnings of the app, which uses Microsoft technology.
In an exclusive interview with The National, Mr Lamanna said the TAMM demo was among some of the most impressive he had seen in his travels throughout the world.
“Not only was it doing question-and-answer and knowledge-based answers, but it has five agents that can do action completion and task completion, and that is cutting-edge frontier work,” he said.
“Many of the AI conversational agents built by consumer companies in the US or anywhere else, they're not doing that level of investment or innovation.”
Mr Lamanna addressed the thousands in attendance at the event showcasing various AI products made by Microsoft and other companies. He showed the newest features of the company's Copilot AI platform, and emphasised Microsoft's push for AI agents that will work alongside humans to complete various tasks.
“You can use natural language to create agents that are incredibly powerful,” he told the crowd, pointing out that Microsoft had two datacentres in the UAE to help power the company's AI cloud computing platform, Azure.
He concluded his keynote by circling back to Microsoft's continued affinity for the UAE. “We succeed when the world around us succeeds, and this community in the UAE is critical to our success,” Mr Lamanna said. “The work you do in this region is so important to our mission.”
The overall AI research, investments and partnerships for Microsoft appear to be paying off.
Most recently, the company reported a 33 per cent surge in its fiscal 2024 second-quarter net profit on robust Azure cloud business and double-digit growth in quarterly revenue which surpassed analyst expectations.
Yet as Microsoft approaches the ripe age of 50, continued success is far from guaranteed.
As any technology analyst or executive will privately tell you, the dustbin of history is filled to the brim with lofty product launches that have seemingly melted on contact, leaving behind nothing but faint memories of hype and hoopla.
“We're not going to miss this moment,” Mr Lamanna said, pointing out that Microsoft shows no sign of slowing down AI investment.
“We are dedicated to making sure that we are prepared for this AI transformation.”
If artificial intelligence becomes the new oil in terms of driving economic prosperity, as many have suggested, that obviously bodes well for Microsoft.
For the UAE, which seeks to make an impact beyond oil, it also seems AI holds the keys to securing that future for economic success.
The goals between Microsoft and the UAE, continue to work in tandem. “Microsoft is committed to partnering with UAE organisations, across the public and private sectors to advance the country's innovative leadership on its AI transformation and help organisations across the country unlock new growth,” read a statement from Microsoft promoting the event in Dubai.
In recent years, the UAE − the Arab world’s second biggest economy − hasn't been shy about its desire to be an AI front-runner, as it seeks to diversity its economy.
The country’s efforts have resulted in the establishment of start-ups, partnerships and investments from industry leaders.
The UAE has also created several large language models, such as Jais, seen as the backbone of the technology.
Jais Chat, a mobile app iteration of Jais also made an impact in the country with its ability to be proficient in both Arabic and English.
Back in 2019, well before AI was on the tip of almost every technology analyst's tongue, the UAE was among the first in the world to start a university dedicated to artificial intelligence, Mohamed bin Zayed University of Artificial Intelligence.
A total of 101 graduates representing 22 nationalities received diplomas during MBZUAI's 2024 class, with Emirati's making up 24 per cent of those.
if you go
The flights
Emirates flies to Delhi with fares starting from around Dh760 return, while Etihad fares cost about Dh783 return. From Delhi, there are connecting flights to Lucknow.
Where to stay
It is advisable to stay in Lucknow and make a day trip to Kannauj. A stay at the Lebua Lucknow hotel, a traditional Lucknowi mansion, is recommended. Prices start from Dh300 per night (excluding taxes).
House-hunting
Top 10 locations for inquiries from US house hunters, according to Rightmove
- Edinburgh, Scotland
- Westminster, London
- Camden, London
- Glasgow, Scotland
- Islington, London
- Kensington and Chelsea, London
- Highlands, Scotland
- Argyll and Bute, Scotland
- Fife, Scotland
- Tower Hamlets, London
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
Tributes from the UAE's personal finance community
• Sebastien Aguilar, who heads SimplyFI.org, a non-profit community where people learn to invest Bogleheads’ style
“It is thanks to Jack Bogle’s work that this community exists and thanks to his work that many investors now get the full benefits of long term, buy and hold stock market investing.
Compared to the industry, investing using the common sense approach of a Boglehead saves a lot in costs and guarantees higher returns than the average actively managed fund over the long term.
From a personal perspective, learning how to invest using Bogle’s approach was a turning point in my life. I quickly realised there was no point chasing returns and paying expensive advisers or platforms. Once money is taken care off, you can work on what truly matters, such as family, relationships or other projects. I owe Jack Bogle for that.”
• Sam Instone, director of financial advisory firm AES International
"Thought to have saved investors over a trillion dollars, Jack Bogle’s ideas truly changed the way the world invests. Shaped by his own personal experiences, his philosophy and basic rules for investors challenged the status quo of a self-interested global industry and eventually prevailed. Loathed by many big companies and commission-driven salespeople, he has transformed the way well-informed investors and professional advisers make decisions."
• Demos Kyprianou, a board member of SimplyFI.org
"Jack Bogle for me was a rebel, a revolutionary who changed the industry and gave the little guy like me, a chance. He was also a mentor who inspired me to take the leap and take control of my own finances."
• Steve Cronin, founder of DeadSimpleSaving.com
"Obsessed with reducing fees, Jack Bogle structured Vanguard to be owned by its clients – that way the priority would be fee minimisation for clients rather than profit maximisation for the company.
His real gift to us has been the ability to invest in the stock market (buy and hold for the long term) rather than be forced to speculate (try to make profits in the shorter term) or even worse have others speculate on our behalf.
Bogle has given countless investors the ability to get on with their life while growing their wealth in the background as fast as possible. The Financial Independence movement would barely exist without this."
• Zach Holz, who blogs about financial independence at The Happiest Teacher
"Jack Bogle was one of the greatest forces for wealth democratisation the world has ever seen. He allowed people a way to be free from the parasitical "financial advisers" whose only real concern are the fat fees they get from selling you over-complicated "products" that have caused millions of people all around the world real harm.”
• Tuan Phan, a board member of SimplyFI.org
"In an industry that’s synonymous with greed, Jack Bogle was a lone wolf, swimming against the tide. When others were incentivised to enrich themselves, he stood by the ‘fiduciary’ standard – something that is badly needed in the financial industry of the UAE."
Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
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.”
BIO
Favourite holiday destination: Turkey - because the government look after animals so well there.
Favourite film: I love scary movies. I have so many favourites but The Ring stands out.
Favourite book: The Lord of the Rings. I didn’t like the movies but I loved the books.
Favourite colour: Black.
Favourite music: Hard rock. I actually also perform as a rock DJ in Dubai.
Five personal finance podcasts from The National
To help you get started, tune into these Pocketful of Dirham episodes
·
Balance is essential to happiness, health and wealth
·
What is a portfolio stress test?
·
What are NFTs and why are auction houses interested?
·
How gamers are getting rich by earning cryptocurrencies
·
Should you buy or rent a home in the UAE?
KILLING OF QASSEM SULEIMANI
Off-roading in the UAE: How to checklist
What is a Ponzi scheme?
A fraudulent investment operation where the scammer provides fake reports and generates returns for old investors through money paid by new investors, rather than through ligitimate business activities.
UAE currency: the story behind the money in your pockets
