The UAE aims to become a global AI leader and continues to tap into new-age technologies in preparation for the economy and society of the future. With its government-backed firm G42 at the forefront, the country has been actively investing in AI to diversify its economy and move beyond its dependence on oil.

In an effort to boost investment in the segment, the UAE is strengthening its ties in artificial intelligence (AI) with the US, according to Omar Sultan Al Olama, the UAE’s state minister for AI. 

“Since the US is now considering the UAE as a strategic partner, you will see more deals naturally,” Al Olama told Reuters. 

This sentiment is echoed by Microsoft’s recent announcement of investing $1.5 billion in G42. The deal grants Microsoft a minority stake in the company and strengthens collaboration on AI projects. Notably, the deal emphasizes security assurances provided to both governments.

Beyond financial investment, the UAE is exploring ways to ensure a robust energy infrastructure to support its growing AI ambitions. 

Al Olama highlighted the importance of a diversified energy mix, including nuclear power, to attract further investment. While discussions on small modular nuclear reactors are ongoing, there are no concrete plans yet.

The minister said, “We will be able to expand our energy infrastructure based on the needs of the data centers.”

This focus on nuclear energy coincides with a recent visit by French Finance Minister Bruno Le Maire to Abu Dhabi. France has expressed openness to UAE investment in its nuclear industry, further solidifying the UAE’s commitment to a robust AI ecosystem. Additionally, France and the UAE are expected to sign a separate strategic partnership focused on AI development.