Middle East Insights: Dubai's digital ambitions – the rise of AI in the 'city of the future'

Editor's note: Middle East Insights is a special feature series by CMG (China Media Group) Middle East station, offering a comprehensive analysis of pivotal regional issues spanning politics, economics, culture and other pertinent fields within the area.

A grand "Artificial Intelligence (AI) Retreat" was held on Tuesday at the Museum of the Future and the Emirates Towers in Dubai, the United Arab Emirates (UAE).

It was the first international AI conference held since the launch of the city's "Universal AI Blueprint" in May. The event, the largest of its kind in recent years, attracted over 1,000 government officials, business leaders and AI experts from around the world.

Ambitions of a 'city of the future'

"The secret to the renewal of life, the evolution of civilizations, and the development of humanity is simple: innovation," reads an inscription on the surface of the Museum of the Future, attributed to Sheikh Mohammed Bin Rashid Al-Maktoum, the ruler of Dubai.

Dubai, driven by this innovation strategy, has been a pioneer in the Middle East's technological transformation.

In 1999, Dubai launched its first Information and Communication Technology (ICT) strategy, marking the beginning of its shift from a traditional oil-based economy to a knowledge and service-based economy. Over the past two decades, Dubai has implemented projects such as Dubai Internet City, Dubai e-Government and Smart Dubai, aiming for a comprehensive digital transformation.

As AI advances globally, Dubai has taken a top-down approach and embraced this technological revolution with policy guidance and public-private partnerships playing crucial roles.

In June 2023, Dubai established the Dubai Center for Artificial Intelligence (DCAI) to integrate AI technologies across government departments. In April, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, crown prince of Dubai and chairman of the Dubai Executive Council, announced the "Dubai Universal Blueprint for Artificial Intelligence." This initiative aims to contribute AED 100 billion (approximately $27 billion) annually to Dubai's economy and boost economic productivity by 50 percent through innovative digital solutions.

The blueprint includes creating AI and Web 3.0 incubators, envisioned to become the world's largest centers for AI and tech companies. Additionally, Dubai plans to issue the "Dubai AI Commercial License" to attract professionals and companies to support industry growth and stimulate investment.

Dubai has inaugurated the first phase of its "AI District" and appointed 22 "Chief AI Officers" across various government departments, including transportation, aviation, customs, police, judiciary and healthcare. AI technology is being used to enhance efficiency and reduce costs through intelligent automation and data analysis.

During the AI Retreat, Saeed Al Falasi, director of the Dubai Center for Artificial Intelligence, highlighted the successful application of AI in government departments. He shared that Dubai plans to introduce more initiatives to further AI development.

Challenges and opportunities in the rise of AI

According to PwC, Gulf countries are expected to gain approximately $23.5 billion in economic benefits from generative AI by 2030. The AI industry is expected to contribute nearly 14 percent of the UAE's GDP. Dubai, as one of the UAE's most significant emirates, is set to benefit from the national AI development plans.

In 2017, the UAE established the Ministry of Artificial Intelligence and appointed Omar Sultan Al Olama as the world's first minister of AI. In 2019, the UAE released the "2031 National AI Strategy," with Abu Dhabi and Dubai both aiming to lead in AI development.

With a series of initiatives being launched, Abu Dhabi and Dubai, the two largest emirates, are each striving to lead in AI development.

Abu Dhabi founded the Mohamed bin Zayed University of Artificial Intelligence in 2019, the world's first AI university, to train research-oriented professionals. In 2023, the university, in collaboration with tech companies, launched Jais, an Arabic AI large model. Earlier this year, Abu Dhabi announced to set up MGX, a tech investment company focused on AI infrastructure, semiconductors and core technologies, managing assets expected to exceed $100 billion.

Despite Dubai's proactive stance, becoming a global AI hub presents significant challenges. Due to geopolitical factors and the foundational aspects of the industrial chain, Dubai's comprehensive AI industry layout still requires improvement. Events like the "Global Prompt Engineering Competition" primarily focus on the basic application levels of AI.

While Dubai's AI development shows promise, the competitive landscape is intense, with neighboring countries like Saudi Arabia also heavily investing in AI. Saudi Arabia has established a $40-billion AI fund and aims to become a global leader in semiconductor manufacturing.

Ultimately, while Dubai's AI ambitions are evident, the journey is just beginning. Officials express confidence that with continued projects and incentives, Dubai will emerge as a pivotal center for AI.

Only time will reveal whether the "City of the Future" can achieve its lofty AI aspirations.

Credits:

Supervisor: Mu Li

Producer: Li Chao

Reporter: Wang Xuejing