My grandfather was a pearl diver long before he ever encountered an oil rig. Following in his footsteps, my father dedicated his career to the oil industry. In the United Arab Emirates, every generation capitalizes on the prevalent resource of its time, but if they are wise, they resist becoming overly attached to it. Today, the new resource is computing power: specialized processors that convert electricity and data into artificial intelligence (AI).
### Ambitious Aspirations in the UAE
The UAE aims to not only acquire this valuable resource but also to establish itself as the primary provider in its region. This represents one of the most ambitious investments the nation has ever embarked on, but it also carries a high risk of failure. Observers of the Gulf should consider these two competing aspects—the immense potential and the equally significant challenges.
The strategy is straightforward. AI functions as an industrial process reliant on three key elements: energy, investment, and advanced chips. The UAE possesses ample energy resources and capital reserves, having accumulated wealth from years of oil production. What it lacks are the cutting-edge silicon chips necessary for AI development. The last couple of years have been predominantly focused on converting energy and finances into access to essential technology.
### Strategic Partnerships and Investments
In May 2025, a turning point occurred when the UAE forged an AI partnership with the United States that included an explicit exchange. The UAE committed $1.4 trillion to the American economy over ten years, gaining the right to import up to 500,000 of Nvidia’s most advanced chips annually. This partnership includes a state-of-the-art five-gigawatt AI campus in Abu Dhabi, touted as the largest of its kind outside the U.S. Among its facilities is the Stargate UAE, powered by G42 and operated by OpenAI and Oracle, with plans to go live by late 2026.
Another important aspect of this strategy is the UAE’s investment in power generation. Months earlier, the Abu Dhabi fund ADQ partnered with American firm Energy Capital Partners to establish a $25 billion initiative aimed at generating around 25 gigawatts of power, predominantly for data centers. As electricity becomes the crucial factor in AI development, Abu Dhabi recognized the need to secure this resource to prevent a bottleneck.
### A New Era of Influence
Connecting the dots, the UAE’s approach is less about immediate financial gain and more about long-term influence. Nearly half of the global population lives within 3,200 kilometers of the UAE, yet many of these markets lack adequate infrastructure for AI. Organizations such as hospitals or governmental ministries would benefit from faster and cheaper AI services from UAE-based providers rather than American ones. The strategy is to become the go-to provider for approximately 3 billion people, creating strategic relationships through sovereign-cloud agreements that maintain data privacy while fostering dependency.
This bold initiative is highlighted by the UAE’s historical shift away from OPEC. In April 2026, the UAE exited the organization after 59 years, primarily due to a quota disagreement. The decision signified a dramatic transition from being a part of a commodity-based alliance to becoming an independent player focused on maximizing output and investing in future industries.
### Navigating Challenges and Risks
The partnership with the U.S. is now a pivotal element of this new model. The first export licenses for chips were granted under specific conditions, emphasizing that partnerships must function within the American framework. Emirati firms like G42 are positioned to access these resources, but this dependence on the U.S. also presents vulnerabilities. If political relations shift, the flow of chips could halt, leaving significant investments stranded.
The history of the UAE teaches a valuable lesson: while bold investments are essential, it’s crucial not to become overly attached to any one commodity. The shift away from oil was a deliberate strategy to remain agile and ready for future changes. This adaptability is a central theme as the UAE dives into the realms of computing power, marking a significant step in its long-term economic evolution.
In conclusion, the UAE is embarking on a profound journey. It remains to be seen whether the nation can maintain its disciplinary approach at this scale while continuing to navigate the complexities of global partnerships and technological advancements.