UAE Accelerates AI Ambitions with New National Strategy and $10 Billion Investment Fund

Abu Dhabi, UAE – The United Arab Emirates has unveiled a bold new phase of its artificial intelligence (AI) agenda, announcing a $10 billion sovereign AI investment fund, a new set of national policies for AI governance, and a regional AI R&D center set to open in 2026.

The announcement positions the UAE as a regional and global leader in artificial intelligence, aiming to attract top talent, international partnerships, and next-generation startups to the Gulf.

“Artificial intelligence is not a luxury or trend. It is a national priority and a pillar of our economic future,” said Omar Sultan Al Olama, Minister of State for Artificial Intelligence, during the official launch in Abu Dhabi.

Key Highlights of the New AI Strategy

The UAE’s updated National AI Strategy 2025–2031 focuses on four main pillars:

Investment: The launch of a $10B AI fund, managed by Mubadala and ADQ, to back high-potential startups, R&D labs, and infrastructure.

Education & Talent: Expansion of AI degree programs and research chairs at leading UAE universities, including Khalifa University and MBZUAI.

Ethics & Governance: Introduction of AI regulations aligned with OECD and EU guidelines, including mandatory impact assessments for AI systems.

International Partnerships: MOUs signed with Google DeepMind, OpenAI, and Tencent AI Lab to develop joint research projects.

AI Now Integrated Into Every Sector

The UAE has already made significant progress in deploying AI across public and private sectors:

Healthcare: AI tools are in use for early disease detection and hospital triage in Abu Dhabi and Dubai.

Transport: RTA is using AI to optimize traffic signals and autonomous vehicle testing.

Finance: Banks like Emirates NBD are using AI for fraud detection and personalized digital banking.

Government Services: Smart chatbots and predictive systems are helping citizens access services faster.

Global Talent and Companies Eye the UAE

With zero personal income tax, long-term golden visas, and world-class digital infrastructure, the UAE is attracting global tech talent and AI companies.

“We are actively relocating our AI division to the UAE,” said Marta Di Lorenzo, CTO of a Spanish robotics firm. “The ecosystem here is built to support scale and speed.”

The UAE also announced plans to host the World AI Forum 2026 in partnership with the United Nations and MIT, further cementing its role as a hub for emerging technology leadership.

Geopolitical and Economic Implications

The UAE’s aggressive AI strategy also has geopolitical significance, as nations around the world race to dominate the next wave of technological innovation.

Saudi Arabia is also heavily investing in AI as part of Vision 2030, setting the stage for regional cooperation — and competition.

Qatar and Egypt have launched national AI strategies, but with smaller budgets and narrower scopes.

Western tech firms are increasingly seeing the Gulf as a stable, high-growth alternative to Asia or Europe amid regulatory uncertainty.

Challenges Ahead: Ethics, Bias, and Regulation

Despite the enthusiasm, experts caution that governance and transparency must keep pace with AI adoption.

“Rapid deployment without oversight can lead to bias, exclusion, or privacy issues,” said Dr. Aisha Farouk, a tech policy researcher in Sharjah. “The UAE’s new regulatory framework is a step in the right direction.”

The government confirmed that AI audits and public transparency reports will be required for any company deploying high-risk AI applications in the country.

What This Means for Businesses and Startups

For entrepreneurs, the UAE is quickly becoming one of the world’s most attractive places to build AI-driven businesses, offering:

Access to significant capital

A regulatory sandbox for AI experimentation

Proximity to regional markets across MENA, Africa, and South Asia

Access to government contracts and pilot programs

The Ministry of AI is also preparing to launch a National AI Procurement Platform, allowing startups to bid on federal AI projects.

Conclusion: The UAE’s AI Moment Has Arrived

As countries around the world compete to define the future of artificial intelligence, the UAE is putting capital, infrastructure, and policy into action — faster and more comprehensively than most of its global peers.

“This is not just about technology. It’s about redefining national competitiveness in the 21st century,” said Minister Al Olama.

With its eyes set on becoming a top 10 global AI power by 2030, the UAE’s latest moves signal that its ambitions are backed by action — and a deep understanding of where the future is headed.