The United Arab Emirates (UAE) has taken a massive bet on artificial intelligence (AI) which could yield significant results in the short and long term.
The investment in AI is becoming the region’s defining economic strategy as it bids to become a global technology powerhouse.
Not many institutions understand the importance of the move better than the International Monetary Fund (IMF). Regional director Jihad Azour believes the UAE’s venture into AI is a game-changer.
The UAE has executed a masterful transformation, investing over $148 billion at home and abroad since 2024. The UAE went from curious experimentation to full-scale digital transformation.
It expanded its data centre capacity, enabled significant investment inflow, and nurtured a modern digital economy, rubber-stamping the Emirate as a hotspot for innovation.
Gulf Firms Powering New AI Era
This year’s Abu Dhabi Finance Week marked the 10th anniversary of Abu Dhabi Global Market (ADGM), which is now one of the most influential financial centres in the world.
ADGM was founded on solid regulatory grounds and a relentless quest for innovation, pulling blue-chip asset managers, international banks and renowned tech firms into the UAE’s orbit.
These financial services, government operations and new digital industries are all turning to AI to drive productivity and efficiency, further spurring the UAE’s push.
Neighbouring Saudi Arabia are moving in tandem. Both nations received glowing endorsements last month as the United States approved the export of advanced chips to the region.
Gulf tech firms, including the UAE’s G42 and Saudi Arabia’s Humain, now have access to some of the finest computing infrastructure in the world.
The Middle East is continuing to expertly navigate its way into the forefront of tech innovation.
AI Could be Hugely Influential in the Gambling Industry
AI could also play a key role in the country’s gambling regulatory framework.
The ultra-conservative Gulf nation has gradually been signalling that it is open to more secular entertainment revenue streams such as gambling.
Wynn Resorts is building the country’s first physical casino resort in Ras Al Khaimah. Its gates open in 2027, and all signs point to a more expansive gambling framework following.
AI will be central to its compliance and oversight systems. Machine learning tools can be deployed to ensure responsible gaming and fortify security at physical and online casinos. The technology will help regulators monitor operators in real time, keeping them in line.
The UAE is looking for new avenues to diversify its revenues, and gaming is a lucrative sector. Online casino operators will also utilise AI to stay compliant and secure their systems against cyberattacks.
The best online casino in Abu Dhabi will increasingly use AI to protect players, personalise user experiences and meet the UAE’s strict regulatory standards.
Growth in the gaming industry also boosts other economic sectors, such as tourism. Ras Al Khaimah is expected to record a surge in visitors from 2027 due to the new integrated Wynn Resort.
The UAE can go a step further by branding its entire gaming model around AI, using machine learning technology as its unique selling point.
The Middle East Economy Will Benefit From AI
The wider Middle East region is integrating AI in its economic planning.
IMF research released this year showed that governments across the region were keen on operating a digital economy after the COVID-19 pandemic and moved several public services online.
Telehealth has become a mainstay. Everyone uses online banking, and private-sector companies now utilise automation to handle supply chains, reduce costs and analyse operations.
The digital transformation is being facilitated by world-class infrastructure. The UAE partnered with Nvidia, Cisco, Oracle, OpenAI and SoftBank to establish a 5-gigawatt AI campus in Abu Dhabi.
Meanwhile, Saudi Arabia’s Humain has forged new alliances with Qualcomm, Cisco and AMD. These partnerships mark the beginning of a plan to dominate next-gen computing.
However, some investors in AI are worried about inflated valuations. Detractors and labour economists are also concerned that machine learning technology can disrupt the job market for around 40% of the global workforce.
Azour has warned that the UAE should be ready to adjust to this disruption as it plans to capitalise on AI. This means the Gulf nation must kick-start reforms to its labour market, upgrade its education system and create an environment that spurs innovation.
For the Gulf at large, this also means empowering women and young children, intensifying infrastructure efforts and anticipating the social consequences of an AI-dominated workforce.
