UAE AI Minister Al Olama Expects AI Industry to Consolidate Into a Few Large Players

Speaking at a summit, Al Olama gave examples of the specialised leaders he expects to emerge. "We're going to see a multi-billion-dollar company that's just focused on AI and life sciences," he said, according to the newspaper. In finance, he said, some players would focus on particular parts of the industry, such as insurance or investment.

Al Olama, whose full title is Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, said AI would disrupt social and economic structures in the short term. Over the long term, though, he expects it to act as an enabler for the UAE, given the size of its economy and the makeup of its population. He said the long-term trajectory looked "only going to be upwards from here" and described the technology as potentially "the internet of the coming age, or even something beyond that."

He also said that a new technology brings volatility, comparing AI to earlier technologies that went through booms and busts. Khaleej Times noted the dot-com crash of the early 2000s, when the Nasdaq index lost 77 percent from its peak. The paper also cited a recent warning from Fitch Ratings that rapid growth in AI-related investment will continue to pose risks.

Data Centres as Critical Infrastructure

The minister linked the UAE's AI plans to the regional conflict. He said that once the UAE and the region come out of the conflict, the country will put standards in place so that data centres are classified as critical infrastructure that cannot be targeted during military conflicts.

"The conflict is definitely something that has affected certain plans, not in a negative way, but just made us plan differently," he said. He added that short-term turbulence would not change the country's long-term thinking, and that the UAE's response to problems is to "double down" on its chosen direction.

Al Olama contrasted the UAE's position with countries where building data centres has become politically contentious. In many places, he said, the decision to invest in data centres draws scrutiny and has cost some politicians their elections. "It's a taboo subject," he said of the debate elsewhere. "Here, we're doubling down on building infrastructure."

Why It Matters

The comments come during a week of AI announcements in the UAE, including agreements between OpenAI and Abu Dhabi entities and repeated statements by officials at ADIPEC that energy and infrastructure are the main limits on AI growth. Al Olama's view that the industry will consolidate around a few domain leaders suggests where the government expects value to collect. His proposal to protect data centres in conflict addresses a risk that investors in Gulf AI infrastructure have had to consider this year.

He did not say how such a standard would be agreed internationally or enforced, and Khaleej Times did not report further detail.