Artificial Intelligence (AI) and its applications are receiving increasing global attention, as countries and technology companies compete to enhance their capabilities in this area. The UAE wants to consolidate its position as a global technology hub through cooperation with several countries, including France.
The UAE’s interest in cooperation with France stems from a convergence of interests between the two countries. Paris is keen to enhance its AI capabilities to keep pace with global developments, while Abu Dhabi is interested in capitalising on investment and technological opportunities available in France.
The French presidency announced that the two countries signed a framework agreement to establish a one-gigawatt data centre dedicated to AI, with investments ranging between $30 and $50 billion.
French President Emmanuel Macron had earlier announced that his country would see private investments worth $112.5 billion in the AI sector.
In recent months, Paris has intensified its efforts to strengthen cooperation with prominent Emirati figures in the Artificial Intelligence sector. Intelligence Online reported that France is focusing on figures such as Khalid bin Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Advanced Technology Research Council (ATRC), which was established in 2020 to enhance Abu Dhabi’s global position in advanced technology.
Furthermore, France has strengthened its partnership with the investment fund MGX, which is set to finance a significant portion of the UAE-France deal. According to the magazine, G42 and the sovereign fund Mubadala, which manages $302 billion in assets, have established a joint investment fund dedicated to Artificial Intelligence, MGX, headed by Tahnoon bin Zayed Al Nahyan.
MGX has received widespread attention due to its significant funding potential. It co-funded Project Stargate, a SoftBank and OpenAI-led initiative to invest $500 billion in data centres in the United States. According to a Bloomberg News report, the project aims to build 12 facilities, each with a capacity of one gigawatt.
According to Bloomberg, data centres and artificial intelligence are a key focus of the UAE’s strategy to diversify its economy and enhance its political influence. Abu Dhabi began building data centres more than 20 years ago as part of the Dubai Internet City initiative, which included innovation centres and office space.
DC Byte data indicates that the UAE currently has 52 data centres in operation. In January, a Dubai billionaire pledged to spend $20 billion on data centres in the United States, and G42 Group announced major computing projects in the Middle East and Africa.
In addition to investing in digital infrastructure at home, the UAE is expanding its investment in data centres globally, strengthening its presence in the advanced technology market.
Since assuming the presidency on May 14, 2022, Sheikh Mohammed bin Zayed Al Nahyan has visited France twice, in July 2022 and May 2023.
The UAE President’s recent visit coincided with the UAE Ministry of Defence’s announcement, on January 30, of the entry into service of the first Rafale fighter jet. The deal, valued at $18.8 billion, includes the production of 80 Rafale fighters.
France is the UAE’s fourth-largest trading partner among European Union countries, ranked sixth in the UAE’s non-oil exports, and third among the UAE’s import sources within the EU, according to data published by the Emirates News Agency (WAM) in 2023.
In terms of investment, France is the largest European investor in the UAE, with total foreign direct investments amounting to $4.4 billion by the end of 2020, equivalent to 20% of the EU’s total investments in the country.
In contrast, Emirati investments in France amounted to $3.3 billion by the end of 2021, according to official data, reflecting the depth of economic relations between the two countries.
[TRT Arabi]
Compiled and translated by Faizul Haque