Business Daily – "UAE: The Next AI Powerhouse?"

BBC World Service | Host: Sameer Hashmi | September 16, 2025

Overview

This episode dives deep into the United Arab Emirates’ (UAE) ambitious strategy to become a global powerhouse in artificial intelligence (AI). The show unpacks the multi-billion-dollar partnerships with US tech firms, the unveiling of the massive Stargate AI campus, and the region’s bold bid to become a vital data and innovation hub at the strategic crossroads of Asia, Europe, and Africa. An array of regional tech executives, entrepreneurs, and geopolitical analysts weigh in on the infrastructure buildup, talent race, and ensuing US-China tech rivalry reshaping the Gulf’s economic and strategic destiny.

Key Discussion Points & Insights

1. The UAE’s AI Vision, Infrastructure, and "Stargate"

• Stargate Launch:
  The highlight of US President Donald Trump’s recent visit to Abu Dhabi was announcing the "Stargate" AI campus—a joint UAE-US initiative, touted as the largest AI hub outside the US (03:08). Partners include G42 (Emirati tech giant), Nvidia (supplying advanced chips), and major tech names like Cisco, Oracle, and Softbank.
• Economic Diversification:
  The UAE sees AI and technology as pillars to diversify beyond oil, using its sovereign wealth, energy resources, and strategic geography (03:33).
• Data Center Centrality:
  Data centers, in particular, are becoming “the infrastructure that enables digital economy to evolve.”
  • Quote: “Without the data center, there will not be any cloud adoption, there will not be any AI adoption.” – Hassan Al Naqabi, CEO of Hasna (05:51)
• UAE as a Global Hub:
  Leveraging energy, land, a unique geography, and an open talent policy, the UAE positions itself as an interconnection point for ~3 billion people (06:55).

2. The Mechanics and Importance of Infrastructure

• Clean Energy and Connectivity:
  Stargate’s 5GW AI cluster is powered by a mix of clean energy, emphasizing UAE's access to multiple energy sources and geographies (06:55).
• Talent Magnetism:
  Building premium infrastructure and ease of immigration (golden visa) are integral to attracting global AI talent.
  • Quote: “If you are a smart guy with an amazing idea … you will need to move wherever it’s possible [to run models at scale].” – Baghdad Garas, founder of a UAE AI startup (12:11)
• Strategic Data Crossroads:
  The UAE acts as a digital gateway linking Asia, Africa, and Europe, where major undersea cables and data routes intersect (10:29).

3. Challenges and Limitations

• Talent Shortage:
  The global AI skill gap affects the UAE as well, despite its efforts to attract talent (12:11).
• Market Size Perception:
  Some investors and firms see UAE’s small population (~10 million) as a barrier, missing its value as an entry to a much larger regional market.
  • Quote: “The UAE is a hub and people should consider it as a gate to the Middle East, Africa or India.” – Baghdad Garas (13:36)
• Limited Private Sector Role – For Now:
  Presently, the public sector leads AI investment; but once infrastructure matures, vast opportunities for private enterprise and startups are expected.
  • Quote: “Once those infrastructure will be in place, it will unleash a huge amount of opportunities for the private sector internationally.” – Baghdad Garas (14:18)

4. The New US–Gulf Tech Alliance and US–China Rivalry

• Pivot Toward the US:
  As part of its AI drive, the UAE is scaling back Chinese tech projects (notably with Huawei) and aligning more closely with the US, which has relaxed export restrictions on Nvidia’s top AI chips for the Gulf (15:31).
• Geostrategic Chessboard:
  For the US, partnering with Gulf states in AI is not just about business but a strategy to counter China’s growing global tech clout, especially as the Gulf nations balance energy ties with China and security/tech links with the US (16:21).
• Guardrails, Not Isolation:
  • Quote: “We should make sure that we are able to create guardrails around the way our technology partnership with the Gulf should be.” – Mohamed Solomon, Middle East Institute (16:21)
• China’s Scaling Potential, US Stacks Advantage:
  While the US currently leads in foundational AI infrastructure and software stacks, China’s rapid scaling, industrial productivity, and drive to deliver the full AI stack are underscored as powerful counterpoints (17:41).
• Tech Alignment Is Geopolitical:
  • Quote: “The point is, those AI deals with the Gulf are more about China than about the Gulf. It’s basically us trying to bring a promising, rising AI region ... to the American AI stack, to be on Team America AI.” – Mohamed Solomon (18:38)

Notable Quotes & Memorable Moments

• “UAE now is at the stage where it can be a data hub as well, and it can be an AI hub.” – Hassan Al Naqabi, CEO, Hasna (04:37)
• “Without the data center, there will not be any cloud adoption, there will not be any AI adoption.” – Hassan Al Naqabi (05:51)
• “If you are a smart guy with an amazing idea … you will need to move wherever it’s possible [to run models at scale].” – Baghdad Garas (12:11)
• “The UAE is this new Switzerland, right.” – Baghdad Garas (12:56)
• “Once those infrastructure will be in place, it will unleash a huge amount of opportunities for the private sector internationally.” – Baghdad Garas (14:18)
• “How can you balance between your energy trade with China, which is extremely important, and your technological and military and defense ties to the United States?” – Mohamed Solomon (16:21)
• “The point is those AI deals with the Gulf are more about China than about the Gulf … to be on Team America AI.” – Mohamed Solomon (18:38)
• “A new kind of power is being brokered. It is measured not in barrels, but in bytes.” – Sameer Hashmi (19:18)

Timestamps for Key Segments

• UAE’s AI ambitions and infrastructure vision – [01:28 – 06:34]
• Inside Dubai’s data centers; symbolism of infrastructure – [10:29 – 12:11]
• Talent, reputation, and market size discussion – [12:11 – 14:01]
• Public vs. Private sector roles in AI ecosystem – [14:01 – 15:31]
• US-Gulf tech partnership and China tensions – [15:31 – 18:38]
• Conclusion: AI as the new "power" for post-oil Gulf – [19:18]

Episode Tone and Style

• Balanced & Analytical: Host Sameer Hashmi and guests discuss regional ambitions realistically, highlighting opportunities alongside sober assessments of limitations.
• Informed & Forward-Looking: The episode features executive and investor views, while also situating current events within longer-term economic and geopolitical shifts.
• Vivid & Accessible: Anecdotes (e.g., Trump's visit at Al Wathan Palace, joining Emirates officials) and on-ground reporting from inside Dubai’s data centers bring the story to life.

Takeaway

The UAE—flush with ambition, capital, and strategic intent—aims not just to leap into the AI era, but to anchor itself at the very heart of AI’s future. As global tech rivalry intensifies, the stakes for the Gulf region, the US, and China are about much more than technology—they’re about economics, influence, and a new kind of global power.