According to Ahmed El Safty, Economic Advisor at ECSSR, the United Arab Emirates (UAE) has successfully converted itself into one among the most diversified economies in the MENA region. He has highlighted that the UAE AI capabilities are contributing the most to this growth.
In addition, the nation has shifted from oil dependency to developing a strong base in non-oil trade, logistics, manufacturing, infrastructure, tourism, and construction. Thus, the non-oil sector contributed 75.5% of GDP by non-oil sector.
Now, the nation is preparing itself for the next growth phase in artificial intelligence (AI) and advanced technology. In addition, AI spending reached $154 billion in 2023 throughout the world. Moreover, it is forecast to nearly double by 2026. Notably, Generative AI alone is projected to add $2.6–4.4 trillion annually to the world economy.
UAE AI on the Strategic Edge
The UAE has a unique benefit in this transformation due to reliable clean energy, hyperscale cloud infrastructure, and government-backed AI integration. In addition, the nation’s National Strategy for AI 2031 and the Digital Economy Strategy are focused on doubling the GDP shares of the digital sector from 10% in 2022 to 20% within a decade.
Forecasts suggest that AI could contribute 14% of the GDP of the UAE by 2030. In addition, the domestic AI market is expected to grow from $3.47 billion in 2023 to nearly $50 billion.
Global Partnerships Fueling Growth
Major partnerships are boosting the vision. Notably, Microsoft invested $1.5 billion in Abu Dhabi-based G42 in Abu Dhabi. So, it strengthens the AI development in the Middle East, Central Asia, and Africa. In addition, the UAE launched the UAE-US AI campus, which is the home of Stargate UAE. However, it is the largest AI Data center complex outside the US.
The hyperscale hub is going to empower AI development while using renewable energy and advanced cooling to reduce environmental impact because it is backed by partners like OpenAI, NVIDIA, Oracle, Cisco, and SoftBank.
Building an AI-Ready Workforce
The UAE is equally focused on preparing its people for the AI era. Therefore, initiatives such as the Dubai Centre for AI’s “One Million Prompters” program and the federal One Million AI Talents initiative (in partnership with Microsoft) aim to build a future-ready workforce by 2027.
In addition, these projects will train professionals in AI prompt engineering, data science, and applied AI skills. Thus, it ensures widespread advantages across healthcare, transport, energy, and education.
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