The United Arab Emirates has unveiled a $2 billion AI infrastructure fund aimed at strengthening its position as a global technology hub. The initiative, announced in Abu Dhabi today, will focus on building advanced data centers, cloud computing capabilities, and AI research facilities.

The fund is backed by sovereign wealth entities and private investors, signaling strong public-private collaboration. Officials stated that over 40% of the investment will be allocated to next-generation data centers, addressing the region’s growing demand for AI processing power.

This move comes amid rising global competition in artificial intelligence, particularly between the U.S., China, and emerging tech regions. The UAE has been aggressively investing in AI through initiatives like smart cities and autonomous mobility.

Economically, the fund is expected to generate over 20,000 high-skilled jobs in the next five years while boosting non-oil GDP contribution. Analysts suggest this could attract global tech giants to establish regional headquarters in the UAE.

Looking ahead, the initiative positions the UAE as a key player in the Middle East’s digital economy, with AI projected to contribute nearly 14% to the country’s GDP by 2030.

Source : Reuters.