A comprehensive report from JPMorgan has revealed that the United Arab Emirates is undergoing a significant transformation in its economic framework, shifting from an oil-dependent model to a digital economy driven by advanced technology. The report indicates that the nation is adopting a sovereign strategy focused on artificial intelligence, with Dubai and Abu Dhabi striving to establish the UAE as a global hub for this sector by 2031. The document highlights Dubai’s pivotal role in embracing cutting-edge technologies to benefit its key sectors, citing crucial milestones in the emirate’s journey, according to Bloomberg.
The report also pointed out the establishment of a joint venture named “Aether,” a partnership between Palantir Technologies and Dubai Holding. This collaboration aims to accelerate the adoption of artificial intelligence in Dubai’s priority industries, reflecting the emirate’s strategy of engaging in international partnerships to enhance its competitiveness.
Additionally, the report cited the effectiveness of “Expo Dubai” as a tangible example of the capabilities of smart cities within the country. Technologies from the company “Pursight” were utilized for crowd monitoring and management, involving the analysis of data from over 100,000 visitors and 6,500 vehicles daily. This provided practical evidence of Dubai’s digital infrastructure efficiency and its capacity to intelligently manage large-scale events. The report also mentioned the Dubai International Financial Centre as an incubator for sophisticated businesses and investments.
Conversely, the report highlighted Abu Dhabi’s leadership in the sovereign aspect of the national strategy, supported by substantial investments and comprehensive government plans. In January 2025, the Abu Dhabi government announced its digital strategy for 2025-2027, with an investment of 13 billion AED. A primary objective is for Abu Dhabi to become the first government worldwide to fully integrate artificial intelligence by 2027. The plan includes implementing over 200 innovative AI solutions across various government services to solidify the emirate’s position as a global innovation hub. The emirate relies on major national companies like G42 and its subsidiary Pursight to realize this vision in collaboration with entities such as the Abu Dhabi Police, the Department of Energy, and ADNOC.
At the federal level, the report confirmed that the UAE is consistently progressing towards fulfilling the “UAE Artificial Intelligence Strategy 2031,” launched in 2017 and supported by three core pillars. The first pillar is governmental leadership, exemplified by the appointment of the world’s first Minister of State for Artificial Intelligence in 2017, along with the establishment of a specialized Ministry for Artificial Intelligence and Digital Economy.
The second pillar focuses on education and research, represented by the founding of the “Mohammed bin Zayed University of Artificial Intelligence” in 2019 as the first graduate research university dedicated to this field, with plans to launch undergraduate programs in 2025.
Lastly, sovereign investment is highlighted with the launch of the “MGX” firm in 2024 by Mubadala and G42, aimed at investing $100 billion in artificial intelligence and semiconductor infrastructure, positioning the UAE at the forefront of the global technology landscape.
The report emphasized that artificial intelligence is not merely a technological tool for the UAE, but a new engine for the economy. By integrating these technologies into the energy sector to enhance efficiency (through AIQ and ADNOC) and in the financial sector (in collaboration with the Central Bank), the UAE aims to ensure sustainable economic growth independent of oil market fluctuations.