Abu Dhabi Pledges to Become First AI-Native Government by 2027
By Zhang Erchi and Denise Jia
Abu Dhabi has unveiled sweeping plans to become the first AI-native government by 2027, allocating 13 billion dirhams ($3.5 billion) to embed artificial intelligence across all public sectors—a bold move that is drawing tech titans from East and West into fierce competition.
Officials from the emirate’s Environment Agency revealed the extent of its AI integration during a media briefing on Sept. 24, showcasing tools developed over the past year to monitor oil spills, soil degradation, and even illegal waste dumping using satellite-linked AI systems.
“We have a program every month that teaches us to use AI tools,” said Ahmed Baharoon, executive director at the agency’s Environmental Information and Science Division. “It’s no longer optional—AI is now a critical part of how we operate.”
The initiative stems from a 2025 directive by UAE leadership that mandates complete digital transformation of government operations. The goal is for all services to move to the cloud and become fully automated within three years.
This ambition has sparked a wave of international interest.
On Sept. 22, Nvidia Inc. partnered with Abu Dhabi’s Technology Innovation Institute (TII) to establish its first AI center in the Middle East. Days later, OpenAI CEO Sam Altman met with UAE President Mohamed bin Zayed Al Nahyan to discuss strategic collaboration. The meeting followed OpenAI’s announcement of the “Stargate UAE” project—a colossal 1-gigawatt data center under development in Abu Dhabi.
Long before AI became a buzzword, the UAE was preparing for the future. In 2017, it launched the world’s first Ministry of Artificial Intelligence. Two years later, it founded Mohamed bin Zayed University of Artificial Intelligence, the world’s first graduate-level AI research university.
“Abu Dhabi was talking about AI before it was cool,” Altman remarked during a 2023 visit.
While U.S. and Chinese tech giants dominate global AI headlines, Abu Dhabi is quietly becoming the most aggressive government adopter of the technology. Its central status in the UAE—home to 96% of the country’s oil and 84% of its land—has given it both the economic clout and political backing to pursue AI on a national scale.
From ministries to universities, the transformation is unfolding quickly.
At Khalifa University, all departments are now required to indicate how AI is integrated into their coursework—or explain why it isn’t. “Python and data science are now core requirements,” said university president Ebrahim Al-Hajri. “We want every graduate to carry AI skills into their future careers.”
Chinese AI companies have been among the early movers. SenseTime Group Inc. set up a regional R&D center in Abu Dhabi as early as 2019. Its office is located within Hub71, the capital’s premier tech incubator, and focuses on localized solutions for healthcare, remote sensing, and education.
Autonomous driving startup WeRide Inc. entered the UAE market in 2021 and received the country’s first national permit for driverless vehicle testing in 2023. Yet, as of late September, safety drivers were still present in its test vehicles, underscoring that the road to full autonomy remains complex.
However, Chinese firms face stiff competition from U.S. rivals, particularly in sectors like cloud and software. In April, Microsoft Corp. invested $1.5 billion in G42, Abu Dhabi’s leading AI company. The deal included a joint $1 billion fund for local developers, and Microsoft President Brad Smith joined G42’s board.
A Chinese investor with years of experience in the Middle East told Caixin that, aside from sectors like clean energy where China holds a clear advantage, most local governments and companies in the region still see Chinese tech products as a secondary option—only considered when American alternatives are unavailable or unsuitable. “Chinese companies need to be prepared for this dynamic,” he said. He also emphasized that success in Abu Dhabi often requires a top-down approach. “If a Chinese firm truly wants to expand here, the CEO or founder needs to be personally involved. That level of commitment makes a tangible difference.”
Abu Dhabi isn’t content with being a customer—it wants to become a creator. In 2020, it launched the Advanced Technology Research Council (ATRC), which oversees both TII and ASPIRE, a tech project management firm.
“In the past, we had the financial capacity to buy products and services from outside,” said Stephane Timpano, CEO of ASPIRE. “But now, as we pivot away from oil, we realize that we must build our own research and development capacity. It’s critical for the sovereignty of the country.”
Timpano added that Abu Dhabi’s needs—such as economic sustainability under water scarcity—require tailored solutions. In May, TII released Falcon Arabic, a large language model built from native Arabic datasets to better serve the region’s linguistic diversity.
In just five years, TII has recruited over 1,000 researchers on AI, autonomous driving, robotics, security systems from 82 countries, only 250 of whom are locals. Abu Dhabi’s openness to foreign expertise and its long-term funding commitments have made it an attractive hub for early-stage innovation.
As a young city, Abu Dhabi has the rare chance to build future-proof systems from the ground up, Timpano said.
With strategic leadership, deep pockets, and global partnerships, Abu Dhabi is positioning itself not just as a regional AI hub—but as a global testbed for the future of government.
“This isn’t just about deploying AI,” said Abdullateef Al Ali of the Department of Economic Development. “We always like to lead, to be pioneers in different fields.”
Contact reporter Denise Jia (huijuanjia@caixin.com)
caixinglobal.com is the English-language online news portal of Chinese financial and business news media group Caixin. Global Neighbours is authorized to reprint this article.
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