Abu Dhabi’s Ambitious Ascent: From Oil Wealth to AI Leadership, Partnering with the US Marks Just the Beginning

Abu Dhabi, known for its vast oil reserves, is aggressively pursuing a leadership role in artificial intelligence (AI) under the guidance of Omar Al Olama, the world’s first minister dedicated to AI strategy. Recently, Microsoft’s $1.5 billion investment in G42, an AI group chaired by a prominent member of the ruling family, underscored the UAE’s alignment with US interests amid global tech supremacy struggles.

The move is seen as a strategic maneuver by the Biden administration to counter China’s influence in the region. G42, a conglomerate spanning sectors like data centers, healthcare, and biotechnology, is pivotal to Abu Dhabi’s economic diversification plans, aiming to reduce oil dependency. By 2030, AI initiatives could contribute $96 billion to the UAE economy, nearly 14% of its GDP.

Minister Olama, overseeing digital economy and remote work applications, aims to position the UAE as a global AI leader by 2031, emphasizing collaboration with international partners to navigate market dynamics effectively.

The UAE has embarked on a comprehensive national strategy to achieve its AI ambitions, focusing on key sectors like energy and logistics. Central to this strategy is the development of a robust AI ecosystem and the attraction of top global talent. The country has initiated AI training programs for public officials, while Dubai aims to educate one million citizens in prompt engineering, enhancing AI model capabilities to deliver superior results.

By September, the number of people engaged in AI and related industries in the Gulf country surged to 120,000, up from 30,000 just two years earlier, as highlighted by Minister Al Olama.

Taking Stands

In navigating its international relations, the UAE has often prioritized its alliance with the US over relations with Washington’s competitors. Earlier this year, a US Congressional committee urged the Commerce Department to investigate G42’s alleged ties to Chinese military and intelligence entities, although G42 denied any such connections. In response to US concerns, G42, backed by a significant Microsoft investment, shifted away from Chinese hardware suppliers like Huawei to collaborate with US firms.

Minister Olama acknowledged the US stance, stating, “The US makes it clear that ‘choosing sides’ is necessary in certain technologies.” Historically, the UAE has maintained a delicate balance in its foreign policy, collaborating closely with the US on defense while also engaging with other global partners.

The Biden administration, emphasizing AI’s critical role in economic and national security, has enacted stringent measures, including export controls on AI and semiconductor technologies, aimed at curbing China’s progress in these fields.

The US government has taken steps to control the flow of advanced semiconductor technology to prevent China from accessing the latest AI capabilities through Middle Eastern nations, Reuters reported. Nvidia, a major player in the industry, disclosed in an August 2023 filing that it was notified by US authorities about additional licensing requirements for its products in certain Middle Eastern countries.

In response to the partnership between G42 and Microsoft, some US lawmakers have expressed concerns about potential vulnerabilities of American technology to Chinese espionage in the UAE. Despite these concerns, Minister Olama reassured that the UAE remains a trustworthy partner. He emphasized the presence of cutting-edge American technology within the UAE while speaking in his personal capacity, emphasizing the nation’s commitment to responsible use and collaboration in AI advancement.

Embracing Technological Leadership

Abu Dhabi’s Technology Innovation Institute made waves in late 2023 with the launch of Falcon10B, a cutting-edge large language model (LLM) that surpassed offerings from tech giants like Google and Meta in certain benchmarks. According to James Lewis from the Center for Strategic and International Studies (CSIS), Falcon solidifies the UAE’s competitive stance in the global AI race.

Further enhancing its AI capabilities, a collaboration involving Abu Dhabi’s Mohamed bin Zayed University of Artificial Intelligence, Cerebras Systems from Silicon Valley, and Inception of G42 introduced Jais in October 2023. This generative AI model is bilingual, trained in Arabic and English, with potential applications for developing LLMs in other languages currently underrepresented in mainstream AI.

Setting themselves apart from closed platforms like ChatGPT and Google’s Gemini, Falcon and Jais are open-source, making their code accessible for modification and use by anyone. Abu Dhabi’s decision to open-source these technologies not only underscores its commitment to technological inclusivity but also positions it as a supportive partner for developing nations lacking the resources to develop their own AI tools.

Minister Olama emphasizes the UAE’s commitment to developing AI systems for countries that lack the capacity to do so independently. This initiative aims to foster global accessibility to advanced technology.

Some analysts view the UAE’s substantial oil wealth as pivotal in funding extensive AI infrastructure, positioning the nation as a future tech leader. James Lewis underscores the financial advantage this affords them.

In response to rising concerns over AI risks, Olama advocates for an international coalition to regulate AI development and usage. Highlighting the potential threats, a US State Department report warned of extreme risks posed by advanced AI systems, prompting global attention.

Olama expresses specific concerns about deepfakes leading to truth and political crises, as well as the potential misuse of AI in biotechnology weapons. While cautious about alarmism, he stresses the need for robust safeguards against such risks.