UAE ranks among top global AI contenders, says BCG report
The UAE has positioned itself among leading emerging economies in AI readiness, according to a new report from Boston Consulting Group (BCG).
The study, GCC AI Pulse: Mapping the Region's Readiness for an AI-Driven Future, places the UAE in the 'AI Contender' category alongside 31 other economies, including Saudi Arabia.
BCG's 2024 AI Maturity Matrix, presented at the Dubai AI Assembly, categorises economies into four tiers: Emergents, Practitioners, Contenders, and Pioneers.
While other GCC nations such as Qatar, Kuwait, Oman, and Bahrain rank as 'AI Practitioners', no Gulf nation has yet achieved the top-tier 'Pioneer' status currently held by the US, UK, and China.
UAE's AI readiness ranked
'The UAE is poised to be a regional leader amongst other global AI Pioneers by capitalising on its established digital infrastructure and formulating strategic initiatives that support AI integration into its economic visions. Key indicators collectively illustrate a forward-thinking approach to AI by the UAE and outline clear pathways for improvement. As entities forge ahead, these insights are key in the drive towards AI maturation,' Dr. Akram Awad, Managing Director and Partner at BCG said.
The UAE's performance mirrors many benchmarks set by established AI Pioneers, with particular strength in AI governance as demonstrated by the National AI Strategy 2031 and its appointment of the world's first AI Minister in 2017.
The nation hosts nearly 7,000 AI specialists and has produced approximately 700 AI-related publications.
The report notes that while the UAE exceeds average investment levels within its peer group, further mobilisation of private sector capital would help elevate the country to Pioneer status.
Significant initiatives such as the $100 billion MGX fund demonstrate the UAE's global ambitions in AI development.
Infrastructure strengths include 35 data centres and the highest public cloud expenditure per employee in the GCC at $228, creating what BCG describes as 'a robust foundation for AI technologies and platforms to thrive.'
'Our research findings reveal that advancing private sector engagement and investment, improving R&D outcomes to global innovation levels, and expanding the homegrown AI talent pool, will further solidify the UAE's position as a global AI leader. These imperatives will accelerate the UAE's journey towards a clear status as an AI Pioneer, multiplying economic and social benefits at the national level,' Rami Mourtada, Partner and Director at BCG added.
GCC nations' AI status
The report highlights a region-wide push toward AI maturity, with Saudi Arabia aiming to rank among the top 15 AI nations by 2030. Qatar and Oman are developing modern infrastructure and upskilling initiatives, while Bahrain and Kuwait establish foundational AI strategies.
'The UAE stands out as a beacon of advanced leadership and execution in AI — but what makes this moment remarkable is the broader wave of transformation across the GCC,' Dr. Lars Littig, Managing Director and Partner at BCG explained.
The report recommends expanding AI capabilities through upskilling programmes and international talent acquisition, realigning governance structures with evolving AI ethics frameworks, and intensifying research and development investments to foster stronger academia-industry collaborations.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Middle East Eye
a day ago
- Middle East Eye
Ex-CIA officer running Gaza aid security advised Boston Consulting Group
Former CIA paramilitary officer Phil Reilly, who heads a private military company that is guarding Israel's newly set up food distribution sites in Gaza, was a senior advisor at the US consultancy that is the latest partner to withdraw from the controversial aid project. The Boston Consulting Group admitted last week that it was involved in developing the Gaza Humanitarian Foundation (GHF), but has since halted its involvement and distanced itself as 110 Palestinians have been killed and 583 wounded trying to access aid during GHF's 10 days of operations, according to government sources. But Reilly's role with BCG, which ended only six months ago, raises questions about whether the consultancy was also involved in developing the security side of the aid operation. Questions about the firm's role come as BCG announced on Thursday that it had fired two partners for 'unauthorised work' in relation to GHF. BCG said the partners 'failed to disclose the full nature of the work during the client acceptance process' and carried out subsequent unauthorised work in violation of company policies and protocols. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters The firm said the subsequent work had "lacked visible multi-lateral support" and that it has engaged outside counsel to investigate its involvement in the project. 'We deeply regret that in this situation we did not live up to our standards. We are committed to taking all necessary steps to address the issues identified in the ongoing investigation,' the company said. MEE asked BCG on Friday whether the firm was involved in the security operations to support GHF, what role it had played with the foundation and who had asked the firm to get involved initially. BCG directed MEE to its statement from Thursday which did not answer the questions. Consulting on Gaza A 29-year veteran of the CIA, Reilly served as a senior advisor at BCG for eight years starting in January 2017, just as US President Donald Trump's first term started, according to his LinkedIn account. It was early last year, while still holding his advisory role, that Reilly reportedly first began discussing Gaza aid with Israeli civilians in early 2024. Later in 2024, he worked on a study for Orbis, another US consultancy, which reportedly outlined a plan to outsource food aid delivery to private companies and foundations, the NYT reported. Reilly's advisory role with BCG ended in December, a month after Safe Reach Solutions (SRS), the private military company now operating in Gaza, was registered in Wyoming, a known US tax haven. Mercenary firm set to oversee Gaza aid for Israel goes on LinkedIn hiring spree Read More » Public records show that SRS's registered agent, as first reported by All-Source Intelligence, is the Wyoming-based wealth management fund, Two Oceans Trust LLC. But the public records fail to reveal many more details about SRS, including its funders. It was reported this week that McNally Capital, a Chicago-based private equity firm, has an "economic interest" in SRS, although the scale of the interest remains unclear. The lack of clarity about funding is also true of GHF which is registered with scant few other details in Delaware, another notorious US tax haven. SRS is understood to be the main company currently securing the food distribution sites that are part of Israeli and American moves to take control of aid distribution in the enclave, which have been beset by controversy. The UN and international aid agencies have sounded the alarm for weeks over concerns that the plans which have unfolded at pace failed to meet humanitarian principles and would encourage forced displacement of Palestinians. Hours before GHF was to start distributing aid in Gaza late last month, executive director Jake Wood resigned over concerns that it was impossible for the organisation to operate independently or adhere to strict humanitarian principles. Wood was replaced this week by Johnnie Moore, an evangelical leader who has advised Trump on interfaith issues. Moore has denied reports that Palestinians were killed and injured while seeking aid at GHF's sites in Gaza and said he was demanding results "with Silicon Valley precision".
Arabian Business
4 days ago
- Arabian Business
Kuwait Investment Authority enters AI race by joining MGX-backed AIP
Kuwait Investment Authority (KIA) has taken its first major step in the artificial intelligence space when it became the first non-founder financial anchor investor to join the AI Infrastructure Partnership (AIP), which was created last year by Abu Dhabi-based MGX, Microsoft, BlackRock and Global Infrastructure Partners (GIP, a part of BlackRock). KIA is the sovereign wealth fund of Kuwait and is one of the largest in the world, with approximately US$1 trillion in assets under management. AIP was created in September last year to help mobilise US$30 billion of equity capital from investors, asset owners, and corporations, with the potential to reach up to US$100 billion when including debt financing. Over the past year, it has become one of the world's leading AI infrastructure platforms with the addition of technology partners NVIDIA, xAI, and Cisco, as well as agreements with GE Vernova and NextEra Energy to help accelerate the scaling of energy solutions for AI data centers. KIA's addition reinforces AIP's global reach and strategic impact as it accelerates investment in next-generation AI infrastructure. It underscores the partnership between leading regional and global institutions in advancing the infrastructure and innovation needed to power the future of artificial intelligence. Sheikh Saoud Salem Abdulaziz Al-Sabah, Managing Director of the Kuwait Investment Authority, commented: 'KIA's participation in AIP reflects our long-term commitment to investing in transformative global infrastructure that drives innovation and economic progress. We view AI infrastructure as an instrumental driver of future growth, and we are proud to collaborate with leading global partners to accelerate its development at scale.' Ahmed Yahia Al Idrissi, Managing Director and CEO of MGX, added: 'We are delighted to welcome KIA as a strategic capital partner, marking a significant milestone that further reinforces the strength and long-term vision of the AIP Partnership. As the demand for AI infrastructure continues to rise, we must scale our investments and accelerate the pace of execution, working with our global partners.'
Arabian Business
29-05-2025
- Arabian Business
While the West debates AI regulation, the UAE is deploying it at scale
The West is stuck in an exhausting cycle of AI anxiety. Europeans craft elaborate regulatory frameworks. Americans oscillate between Silicon Valley techno-optimism and Washington hand-wringing. Meanwhile, the United Arab Emirates has simply gotten on with it. When Dubai announced plans to roll out free ChatGPT Plus subscriptions for residents as part of the Stargate UAE project, it was making a strategic declaration to the world. The UAE is participating in the AI revolution by methodically positioning to dominate the global AI landscape. This is not national romanticism; it's a cold-eyed assessment of how the UAE is systematically building the infrastructure, partnerships, and expertise to lead the next technological era. Let's talk numbers. a multi-billion dollar investment in the Stargate UAE computing cluster –expected to become one of the world's largest AI hubs with a 1-gigawatt facility – anchors the country's infrastructure ambitions; a state-owned AI investment vehicle (MGX) targeting $100 billion in assets; Microsoft's $1.5 billion stake in Abu Dhabi's G42 – these are the calculated chess pieces of a nation playing several moves ahead on the global chessboard. Strategic clarity amid Western confusion The European Union spent three years labouring over its AI Act, producing a byzantine classification system that neatly divides AI into risk categories with corresponding restrictions. This has resulted in a regulatory masterpiece that practically guarantees European technological irrelevance. The U.S.'s approach is hardly better – a haphazard blend of corporate self-regulation and fragmented state interventions that satisfies nobody. One federal agency warns of existential risk while another frets about falling behind China. Paralysis ensues. The UAE suffers no such confusion. The country appointed the world's first Minister of State for AI in 2017, a full six years before Sam Altman was testifying to Congress about the need for regulatory oversight. This was far from symbolic. It signaled an intention to integrate AI governance at the highest levels of government while Western democracies were still debating whether AI deserved cabinet-level attention. Confidence vs. anxiety The UAE's approach stems from a fundamental cultural difference. Western discourse frames AI through fear – job displacement, misinformation, existential risk. The UAE narrative is precisely the opposite. The Gulf nation sees AI as the logical extension of centuries of Arab mathematical and scientific tradition, from Al-Khwarizmi's algebra to today's neural networks. When the UAE revealed its intention to provide free ChatGPT Plus access to all residents, it was a cultural statement. In the Emirates, advanced technology is not something to fear or heavily restrict, but a birthright to be widely distributed. The Jais language model, launched in August 2023 as an Arabic-English LLM, exemplifies this approach. Western models treated Arabic as an afterthought; the UAE built one where the Arabic language and the region's cultural context were central. Forget technological nationalism, this is refusing to accept second-class status in the digital future. Diplomatic agility as competitive advantage Perhaps the UAE's most underappreciated advantage is diplomatic flexibility. While the U.S. and China engage in their technological cold war, restricting chip exports and investment flows, the UAE maintains productive relationships with both superpowers. Microsoft invests billions in the Emirati AI ecosystem while the country simultaneously maintains technological partnerships with Chinese firms. This is strategic genius. The UAE accesses Western investment and Chinese markets simultaneously, while both giants increasingly cut themselves off from each other. The UAE model offers something distinct from either American market-driven innovation or Chinese state-directed development. It blends centralised vision with market dynamism, state investment with private expertise. The results speak for themselves: the Advanced Technology Research Council's Falcon LLM outperforming Meta and Google in certain benchmarks; the Abu Dhabi Autonomous Racing League pushing boundaries of self-driving technology; ADNOC leveraging AI through platforms like its Panorama Digital Command Center to optimise operations and drive efficiency in the energy sector it has long dominated. Public buy-in, not resistance Perhaps most crucially, the UAE has achieved something many governments can only dream of: genuine public enthusiasm for AI. While Western populations grow increasingly suspicious of technology companies and algorithmic decision-making, citizens of the UAE view AI advancement as a source of national pride and a tangible symbol of the country's emergence as a global innovation leader. And this isn't accidental. Through initiatives like the UAE AI Programme, the country is aggressively upskilling its population to work with AI rather than compete against it. By framing AI as job creator rather than job destroyer, the UAE has transformed what could be public resistance into a powerful implementation advantage. ADNOC doesn't hide its AI integration. Instead, it proudly showcases how technologies like Neuron 5 optimise processes and reduce operational downtime. Retail giants like Majid Al Futtaim openly deploy AI-powered platforms for customer experiences. The UAE is normalising advanced AI in daily life while Western companies often downplay automation to avoid public backlash. The global stakes For Western readers thinking this is merely regional posturing, consider the implications. The UAE is demonstrating an alternative model of technological development that numerous countries find more appealing than either the American or Chinese approaches. This Gulf nation of 10 million people has become globally relevant in the most consequential technological transformation of our time. The Emirati model – centralised vision, aggressive investment, cultural confidence, and pragmatic implementation – offers a template for dozens of emerging economies watching this revolution unfold. The West may still enjoy significant advantages – elite universities, deep talent pools, and massive private sector investment. But these advantages are being steadily eroded by regulatory caution and cultural ambivalence. And history repeatedly confirms what we instinctively know: excessive regulation inevitably stifles the very innovation it attempts to guide. While Western nations draft position papers, the UAE builds AI infrastructure. While they debate hypothetical risks, it deploys real solutions. While they regulate, the UAE advances. For all the talk of AI competition between the U.S. and China, the most interesting model might be emerging from a small Gulf nation that many Western analysts still dismiss as a luxury tourism destination with outsized ambitions. They'd be wise to pay closer attention. History teaches us that technological revolutions often produce unexpected winners. Venice dominated early printing. Britain led industrialisation. America mastered computing. Each transformation reshuffled global power hierarchies.
