Abu Dhabi sets up investment firm to achieve AI ambitions

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The United Arab Emirates is inching forward with plans to become the leading artificial intelligence (AI) hub in the Middle East with the launch of a company to spearhead its investment strategy in the sector.

According to a statement by the Abu Dhabi Media Office, the new firm, MGX, will focus on investing in AI and other emerging technologies to improve adoption levels in the Gulf nation.

MGX is the brainchild of the newly minted UAE’s Artificial Intelligence and Advanced Technology Council (AIATC).

Investment company Mubadala and Abu Dhabi-based technology company G42 form part of the initial group of foundational partners for MGX, with several key industry players drafted to join a high-profile board.

The Abu Dhabi Media Office said MGX has three major objectives for AI, including seeking out investment opportunities in AI infrastructure and focusing on expanding and establishing new data centers. The firm will earmark a third of its funds for semiconductor manufacturing to reduce its dependence on foreign sources.

“In MGX, we are establishing a UAE national champion focused on AI and advanced technologies that will shape a future where technology enables a more prosperous, sustainable and interconnected world,” said AIATC Chair Sheikh Mohamed bin Zayed Al Nahyan.

A significant chunk of resources is expected to be deployed to explore new AI applications across key sectors of the UAE economy.

The newly minted investment company will broaden its horizon to robotics, life sciences, and other novel AI use cases. However, the media statement failed to disclose the amount available for investment but hinted that foreign investment firms would be allowed to deploy capital in MGX’s ventures.

MGX will not be starting entirely from scratch; rather, the company’s new executives say they will build on UAE’s existing investments in AI to leapfrog certain pitfalls.

“Our singular focus is accelerating AI’s responsible and inclusive development for the benefit of humanity, guided by Abu Dhabi’s global investment strategy for artificial intelligence,” said Zayed Al Nahyan.

UAE’s AI drive

Earlier, the UAE established the AIATC to spearhead AI development in the region by formulating innovation and adoption policies. Shortly after the AIATC began operations, the government introduced a mass AI education campaign designed to deepen the talent pool for local firms.

In February, UAE officials inked a deal with Serbia to collaborate on new AI use cases in finance, hospitality, and other government services. An attempt by the UAE to localize large language models (LLMs) to capture the nuance of Arabian culture has since yielded early results.

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