Abu Dhabi aims to cement its position as a tech frontrunner, fostering innovation by developing and adopting AI and advanced technologies. To take it to the next level, Abu Dhabi is setting up an investment firm targeting deals in AI and semiconductors that it hopes will exceed $100 billion in assets under management (AUM)  in the coming years. 

The firm will be backed by Mubadala Investment Co and AI company G42 as foundational partners. Mubadala is one of Abu Dhabi’s three main sovereign wealth funds, with around $300 billion in assets under management. G42 is part of a $1.5 trillion empire controlled by Sheikh Tahnoun bin Zayed Al Nahyan, brother of the country’s President, and already boasts a partnership with OpenAI.

According to the Abu Dhabi Media Office, MGX will focus on fostering collaborations both domestically within the UAE and internationally. The firm’s investments will be concentrated in three key areas: AI infrastructure, including data centers and connectivity; semiconductors; and core AI technologies and applications encompassing AI models, software, data, life sciences, and robotics.

This move aligns with the UAE’s broader push towards digital transformation and its ambition to become a global innovation hub. The announcement follows the establishment of the Artificial Intelligence and Advanced Technology Council in January, which was tasked with overseeing AI and advanced technology policies, research, infrastructure, and investments in Abu Dhabi.

“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,” Sheikh Tahnoun bin Zayed, Deputy Ruler of Abu Dhabi and chairman of the AIATC, said.

Last month, Mubadala announced a partnership with Goldman Sachs to deploy $1 billion to hunt for private credit deals across APAC.

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