AI in the Emirates: Forging a tech-driven nation
The UAE has established itself as a hub for innovation and technological development, with artificial intelligence (AI) at the forefront of its national agenda.
In recent years, the UAE has rapidly adopted AI in various sectors, from government services and health care to finance, education, and defence. AI has become a crucial pillar in the UAE’s efforts to diversify its economy, modernise industries, and strengthen its national security.
The country’s 2017 National Artificial Intelligence Strategy set the ambitious goal of becoming a world leader in AI by 2031, and it has made substantial progress toward achieving this vision. AI’s role in economic transformation is central to the UAE’s long-term vision.
The government has promoted AI integration across various sectors to reduce dependence on oil revenues. The UAE’s Digital Economy Strategy, for example, launched in 2022, aims to increase the contribution of internet- and technology-related goods and services to over 20% of GDP by 2031.
This economic transformation is enabled by the government’s support of major AI players, such as G42, an Abu Dhabi-based technology conglomerate that has partnered with companies such as Microsoft and OpenAI and invested heavily in AI and cloud services.
One of the sectors in which these investments are paying off as AI-powered solutions are being used to streamline operations in banking and financial technology, from fraud detection to automated customer service.
The establishment of institutions such as the Mohamed bin Zayed University of Artificial Intelligence and the Technology Innovation Institute reflects the country’s commitment to fostering local expertise in AI. These institutions are at the forefront of AI research, contributing to the development of advanced AI models such as the Falcon large language model (LLM) and Noor, the first Arabic-language AI model.
The UAE’s initiative to train one million people in AI by 2027 highlights its forward-thinking approach to building an AI-driven economy. By equipping citizens, government employees, and private-sector workers with AI skills, the UAE aims to embed AI into daily life and across industries, driving productivity and sustainable economic growth.
Developed in partnership with Microsoft, this initiative is designed to bridge the AI knowledge gap and make AI accessible to every resident. This vision not only supports the UAE’s digital transformation goals but also positions it as a leader in AI literacy.
One of the most visible impacts of AI on the UAE’s defence sector is its role in advancing autonomous military systems such as drones. These unmanned systems increase efficiency, reduce operational costs, and minimise risks to personnel, all advantages in modern warfare.
Precision and effectiveness
The EDGE Group, the UAE’s defence conglomerate, has invested heavily in developing uncrewed aerial vehicles (UAVs), maritime systems, and ground-based autonomous weapons. These systems are designed to operate with minimal human intervention, allowing the UAE to conduct sophisticated military operations with greater precision and effectiveness.
Autonomous drones can patrol borders, monitor threats, and even engage in combat without the need for large deployments of troops or the risks associated with human error. AI also enables the UAE to enhance its intelligence, surveillance, and reconnaissance (ISR) capabilities, ensuring that the country remains prepared for emerging security threats.
AI’s ability to process vast amounts of data and provide actionable intelligence is another critical factor in its impact on the UAE’s defence sector. AI algorithms can analyse vast amounts of data from multiple sources in real-time, providing military commanders with actionable intelligence faster and more accurately than ever before.
AI systems can identify potential threats, and predict enemy movements, allowing for quicker, more informed decisions on the battlefield.
Cybersecurity is another area where AI has the potential to transform the UAE’s defence capabilities. As the UAE continues to modernise its infrastructure and develop “smart” cities, the risk of cyberattacks from state and non-state actors becomes more pronounced. AI can play a critical role in mitigating these risks by identifying and neutralising cyber threats before they cause significant damage.
The UAE’s strategic discussions with TSMC and Samsung to establish semiconductor facilities underscore its ambition to become a regional production hub for critical technologies — a move with significant defence and security implications.
By developing a resilient local supply of semiconductors, the UAE can reduce its reliance on foreign chip suppliers, an essential factor for maintaining defence autonomy and safeguarding national security. Local production, coupled with the UAE’s strategic location, enhances its role in global supply chain resilience, critical for defence logistics and ensuring operational readiness.
Dr Kristian Alexander is a Senior Fellow at the Rabdan Security and Defense Institute (RSDI), Abu Dhabi, UAE