The UAE is positioning itself as a reliable partner in safeguarding sensitive technology, especially as the US considers restricting chip sales to countries in the Middle East.
The AI-focused collaboration between the two nations is gathering momentum, with substantial investments and deals highlighting the UAE’s determination to establish itself as a global AI leader.
UAE’s growth as an AI powerhouse
As global chip sales face potential limitations, the United Arab Emirates (UAE) is making strides to assure the US that it can manage and protect advanced technology.
Peng Xiao, CEO of G42, the UAE’s leading AI company, underscored the country’s capability to safeguard American intellectual property.
At a recent conference in Dubai, Xiao emphasised that the UAE has demonstrated its transparency and ability to guarantee the safety and security of chips deployed within the region.
This reassurance comes amid concerns in Washington over sensitive technology possibly being shared with China.
In response, the Biden administration is weighing new restrictions on chip sales from major US companies such as Nvidia and AMD to certain Middle Eastern countries.
G42 divests from China to boost US relations
One area of concern for the US has been G42’s ties with Chinese companies, especially in light of its previous collaborations with Beijing-based firms.
In February, G42 made the strategic decision to divest from its Chinese partners, including ByteDance, in an effort to strengthen its relations with American stakeholders.
This decision reflects the UAE’s desire to maintain a strong, transparent relationship with the US.
The country’s AI ambitions are not only economic but also strategic, with the US increasingly viewing the UAE as a key partner in the development and governance of artificial intelligence.
$1.5 billion AI partnership with Microsoft
Microsoft’s recent $1.5 billion deal with G42 further solidifies the growing AI cooperation between the US and the UAE.
This partnership, announced in April, demonstrates the trust American companies are placing in the UAE’s capabilities.
The deal is part of the UAE’s broader effort to position itself as a global hub for artificial intelligence.
In a significant diplomatic move, UAE President Mohammed bin Zayed al Nahyan led a delegation to Washington last month, which included G42 Chairman Sheikh Tahnoon and Peng Xiao.
The visit culminated in a joint statement on AI cooperation between the two countries, with plans to develop a government-to-government memorandum of understanding on artificial intelligence.
AI ambitions in the Gulf region
The UAE is not the only Gulf nation pursuing AI dominance. Saudi Arabia is also aiming to access advanced AI technology, particularly Nvidia’s H200 chips, which power models such as OpenAI’s GPT-4.
Abdulrahman Tariq Habib, a top official at Saudi Arabia’s Data and AI Authority, expressed confidence that the kingdom could secure these chips within the next year.
While the UAE and Saudi Arabia are in competition for AI leadership, both nations are working closely with the US to achieve their goals.
As a result, American companies such as Nvidia and Microsoft stand to benefit from the growing AI demand in the region.
US-UAE economic ties strengthen AI collaboration
Beyond AI, the UAE has made significant investments in the US, with a total portfolio worth over $1 trillion.
The country’s sovereign wealth funds, such as the Abu Dhabi Investment Authority and Mubadala, have heavily invested in US real estate, infrastructure, and technology sectors.
This investment backdrop reinforces the trust between the two nations and sets the stage for deeper collaboration in emerging technologies.
The UAE’s AI ambitions are part of its broader economic strategy to diversify away from oil and establish itself as a global technology leader.
With Washington’s support, the UAE could become a critical player in the global AI market, especially as regulatory frameworks evolve to manage the risks associated with advanced technology.
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