Dubai telecom operator du is expecting the GPUs-as-a-service market to gain traction in the UAE, as companies look for more cost-effective ways to integrate artificial intelligence capabilities into their operations, a senior company executive has said.
GPU-as-a-service is a cloud-based model where high-performance graphics processing units, the workhorse of the AI boom, most notably brought to the spotlight by Nvidia, are rented to users.
Du, which launched GPU-as-a-service in May, has been “overwhelmed” with requests for this, signalling a maturing market in the UAE, chief information and communications technology officer Jasim Al Awadi told The National.
The rate of adoption in the Emirates is “so quick … and market maturity will become better when it comes to its usage”, he said on the sidelines of du's Envision conference in Dubai on Tuesday.
“The issue is not with the demand; the issue is how you can get the GPUs and how many GPUs you can have,” he added.
Du is also open to deploying large language models on a bigger scale when the “right” opportunities arrive, Mr Al Awadi said.
LLMs are the algorithms that use deep learning to analyse large amounts of data to create content. The company recently announced a partnership with Microsoft, Nokia, Khalifa University and the UN's International Telecommunication Union to launch what it said is the first Arabic AI model to provide its customer services.
That is an internal du service, and a bigger LLM roll-out is a step it will make “if it makes sense”, Mr Al Awadi said.
“We are accelerating our infrastructure because [data centres] are one of our core strengths. We do have LLMs internally, but on a very small scale,” he added.
“But once we see that those LLMs can materialise, of course we'll push on full force.”
Mr Al Awadi, however, did not elaborate if such a move would be made in its consumer services portfolio, which has been increasing as the UAE's economy has grown and its population increase.
Du is seeking aggressive expansion and has boosted its operations and services over the past year as market dynamics change with emerging technologies, including AI, the cloud and big data.
Last October, du unveiled du Tech and du Infra – in a major shake-up to its business-to-business operations aimed at addressing growing demand for digital transformation services in the UAE.
The introduction of the sub-brands will allow the company to dedicate more resources to business segments and is the next step in the company's transformation and expansion, chief executive Fahad Al Hassawi told The National at the time.
Du is also open to expanding its noncore portfolio outside the UAE, including data centres, financial technology and other information and communications technology segments.
Du is continuing to increase its investments across its portfolio, Mr Al Awadi said, without providing figures.
Du said it is also on track to beat its record 2024 income after it reported a more than 25 per cent annual jump in its second-quarter profit and revenue for the period rose 8.6 per cent.
This week, it launched a secondary share sale offer that could raise up to Dh3.39 billion, as one of its main investors reduces its holding.
Mamoura Diversified Global Holding, a unit of Mubadala Investment Company, is selling 342 million shares, representing 7.55 per cent of du’s share capital and 75 per cent of Mamoura’s stake in the company.
The price range has been set between Dh9 and Dh9.90 a share, with the final offer price to be announced on September 15.
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Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
WRESTLING HIGHLIGHTS
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
