Issue 176: AI is Booming in the Middle East
Welcome to Backstory, a weekly newsletter turning global technology shifts into a three-minute read. This week, we’re thinking about AI. – Mary Ames, Director of Strategy
THE BIG TAKE
AI is Booming in the Middle East
The Middle East, particularly the UAE, is emerging as a burgeoning hub for artificial intelligence (AI) research and development. Highlighted by the success of the Falcon AI model, which surpassed global giants like Meta and Google in certain benchmarks, the UAE's strategic investments in AI are propelling it onto the global stage. This leap forward is enhancing the UAE's technological reputation and signaling its potential as a major player in the AI domain, traditionally dominated by the US and China. Can the region stay on top of these trends?
Long-term horizons. The broader AI sector in the Middle East is shaped by significant financial investments, access to substantial computing resources, and a favorable regulatory environment that contrasts with the more cautious approach in many Western countries. With the UAE's commitment to diversifying its economy beyond oil and leveraging its governance for swift technological advancement, the region is attracting global AI leaders and positioning itself as a competitive destination for AI research and development. This growth is underpinned by ambitious projects and collaborations, including those with leading AI firms and the exploration of advanced semiconductor manufacturing, further solidifying the Middle East's stake in the AI landscape.
Sensible legislation. Looking to the future, the UAE must navigate the dual challenges of maintaining its technological momentum in AI and addressing geopolitical and ethical concerns associated with rapid AI adoption. To sustain its leadership in this field, the UAE must continue attracting top global talent, investing in cutting-edge research, and fostering an environment that balances innovation with responsible AI use. As the global AI race intensifies, the UAE's approach to leveraging its unique strengths while engaging with international partners and standards will be crucial in defining its role as a pivotal AI innovator on the world stage.
QUOTE OF THE WEEK
“Only great minds can afford a simple style.”
– Stendhal, French writer
CHART OF THE WEEK
This week, we are thinking about infrastructure. While it might not be the most exciting asset class, it’s gaining momentum.
SPOTTED ELSEWHERE
Cities of water. In a thoughtful piece on Dutch water management and architectural ingenuity in this week’s New Yorker, we learn how the Dutch have battled water and urbanism. Drawing inspiration from the nation's past, where entire cities like Amsterdam were built on water through innovative techniques, Dutch architect Koen Olthuis has turned to creating floating structures that address the challenges posed by climate change and reimagine living spaces in aquatic environments. His projects, ranging from floating homes in the Netherlands to ambitious undertakings like a floating city in the Maldives, showcase a blend of sustainability and luxury, albeit with a recognition that current advancements primarily benefit the affluent. Olthuis' vision extends beyond traditional architectural norms, proposing a future where water-based living becomes a practical and widespread solution to urban expansion and climate resilience.
Social media in America and the world. As the future of TikTok in America hangs in the balance with a potential ban from Congress, its 170 million users may soon seek alternatives, potentially turning to apps like Bigo Live, Likee, or Hago, all produced by Joyy, a company with ties to China but based in Singapore. This scenario underscores a broader trend where numerous Chinese firms, flourishing in the Western digital landscape, strategically minimize their association with China, often establishing headquarters in locations like Singapore. Despite the success of these apps and others in various sectors—from gaming to e-commerce—growing scrutiny over data privacy and propaganda concerns threatens their presence in Western markets. A potential TikTok ban could reshape the social media landscape and signal a tightening grip on Chinese-linked apps operating within the free realms of the Western internet.