How the UAE Transformed from Oil Wealth to AI Leadership?

DNHN - Once famed as the Gulf’s “oil brain,” the United Arab Emirates (UAE) is now redefining its global standing, emerging as one of the top three nations in artificial intelligence (AI), trailing only behind the United States.

In recent years, the UAE has steadily affirmed its status as an elite haven for the ultra-wealthy. Latest data from Dubai shows the city is home to more than 81,000 millionaires (USD), including over 200 individuals with fortunes of at least USD 100 million, and 20 billionaires.

Driven by a clear strategy, structured investments, and long-term vision, the UAE has made a spectacular transformation into the “AI capital of the world.” This journey has stunned the world and serves as an inspiring model for developing nations like Vietnam, offering valuable lessons for emerging digital economies.

A leap from oil power to the “AI capital of the world”

A 2025 study by TRG Datacenters reveals that the UAE and Saudi Arabia rank second and third globally in AI strength, surpassing leading tech economies such as China, the UK, Germany, and South Korea. The ranking is based on three key metrics: national supercomputing capability, AI enterprise activity, and governmental readiness to act.

According to the Global AI Competitiveness Index, the UAE currently contributes approximately 0.7% of the global AI workforce and is among the world’s top 20 countries by AI talent density, outranking established economies like Italy and Russia. This underscores the nation’s resolve to shed its “oil shadow” and evolve into a knowledge- and innovation-driven economy. If momentum continues, the UAE could, surprisingly, leapfrog to become the global AI leader, even surpassing the U.S.

A pivotal milestone in the UAE’s journey was the establishment of the Mohamed bin Zayed University for Artificial Intelligence (MBZUAI) in Abu Dhabi in 2019, the world’s first university dedicated exclusively to AI education and research. In just six years, MBZUAI has risen to the global top 50 for AI research, forged strategic partnerships with industry giants such as IBM, NVIDIA, and BCG, and attracted a significant portion of leading AI talent worldwide through USD 20 billion in funding (by Stanford).

Recently, the university announced a new research center located in Silicon Valley and unveiled several pioneering models, including PAN (a virtual‑world platform), K2 (a large language model with 65 billion parameters), and Jais (the most advanced Arabic‑language AI model to date).

A coordinated national vision and bold ambitions

The UAE’s educational leap aligns with a broader national strategy. In 2017, it became the first country in the world to appoint a Minister of State for Artificial Intelligence, and launched the “AI Strategy 2031” —an ambitious roadmap that aims to integrate AI across all sectors, from education, healthcare, and energy to finance, transportation, and space.

Under this strategy, AI is expected to contribute around 14% of GDP by 2030, equivalent to over USD 100 billion. Alongside this, the UAE announced a USD 200 billion partnership with the U.S. to build the largest AI campus outside America, strengthen its chip manufacturing and data center infrastructure, and reduce reliance on Chinese technology.

The UAE’s AI development strategy focuses on three key sectors: energy, healthcare, and finance. In energy, AI enhances operational efficiency, reduces emissions, and optimizes extraction. In healthcare, it enables early diagnosis and personalized treatments. In finance, AI powers big‑data analytics, risk forecasting, and transparency. This integrated approach not only fortifies the economic foundation but also propels the UAE toward becoming a leading global tech hub.

Lessons for Vietnam

The UAE’s meteoric rise from oil economy to AI powerhouse in under a decade proves that with a clear strategy, strategic investment, and a people-centered approach, such a transformation is possible.

Vietnam, poised to become a regional AI R&D center, may draw inspiration from the UAE’s experience:

1. Craft and oversee a long-term national strategy, ensuring continuity from strategy development through execution, similar to the UAE’s elevation of AI as a pillar in its “Vision 2031”, directly tied to GDP growth and national digital transformation.
   
   Invest heavily in talent and applied AI education, viewing it as a revolution. For instance, AIUni (AI University - Vietnam AI Institute) has launched a program to train 1,000 professional GenAI instructors through the “National Digital Literacy Campaign”, aiming to eliminate AI “blind spots” among the populace while boosting peak productivity in organizations and enterprises.
   
   
2. Ensure international collaborations yield tangible applications, not just agreements. Mirroring MBZUAI’s partnerships with IBM, NVIDIA, and BCG, Vietnam should push for impactful AI projects with real-world results.
   
   
3. Develop modern technological infrastructure, from supercomputers and data centers to open labs that attract businesses and the scientific community.
   
   Leverage international partnerships and overcome language barriers. Notably, the “Make in Vietnam” AI platform LocaAI, presented to the Prime Minister Pham Minh Chinh during the launch of the National Data Center, offers specialized AI-powered translation across more than 105 languages, a critical springboard for Vietnamese enterprises venturing onto the global stage.
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   Now is a golden moment for Vietnam to make its leap forward by harnessing a robust strategy, nurturing talent, building tech infrastructure, and embracing international integration, especially through domestically rooted solutions like AIUni and LocaAI, chosen by the government as breakthrough platforms in the nation’s ascent.

Dr. Hoang Lan