# UAE AI Initiatives Weekly Report
**Period Covered:** 2026-05-11 to 2026-05-18
**Generated:** 2026-05-18

## Summary

The week of May 11-18, 2026 saw a convergence of landmark UAE AI developments: the Stargate UAE campus began active construction with first-batch US AI chips arriving in Abu Dhabi, India and the UAE formalized AI and supercomputing cooperation during PM Modi's visit, and multiple emirate-level agentic AI mandates accelerated across government and private sectors. MBZUAI released K2 Think V2, a 70-billion-parameter sovereign reasoning model. The UAE AI Act (effective March 2026) is moving businesses toward a September 2026 self-assessment deadline, while the country held its position as the world's #1 AI adoption nation for the third consecutive quarter.

## Government & Policy

- **Federal Agentic AI Mandate:** Sheikh Mohammed bin Rashid announced 50% of UAE federal government sectors, services, and operations will run on agentic AI within two years. Every federal employee must complete generative AI training. Oversight: Vice President Sheikh Mansour bin Zayed; task force chaired by Minister Mohammad Al Gergawi. ([The National](https://www.thenationalnews.com/news/uae/2026/04/23/uae-to-launch-new-ai-powered-government-model-within-two-years/)) ([Khaleej Times](https://www.khaleejtimes.com/uae/government/sheikh-mohammed-announces-50-of-uae-govt-services-to-run-on-ai-agents-in-2-years))
- **Ministry of Energy First AI Forum & Roadmap (May 11):** UAE Ministry of Energy and Infrastructure unveiled an AI integration roadmap at its inaugural AI Forum. Included signing of an AI Charter for responsible technology use; launch of the Research and Innovation Award and AI Award for Zero Bureaucracy. ([Voice of Emirates](https://www.voiceofemirates.com/en/emirates/2026/05/11/a-new-roadmap-to-accelerate-the-use-of-artificial-intelligence-in-government-services-in-the-uae/))
- **Ministerial Council Renamed:** The Ministerial Development Council was renamed the Ministerial Council for Artificial Intelligence and Development, with a mandate to oversee and accelerate AI adoption across federal sectors. ([Voice of Emirates](https://www.voiceofemirates.com/en/emirates/2026/05/11/a-new-roadmap-to-accelerate-the-use-of-artificial-intelligence-in-government-services-in-the-uae/))
- **AI-Driven Government Planning Cycle Launched:** UAE launched a new AI-driven government planning cycle to redesign policies and procedures through AI capabilities. ([Middle East Briefing](https://www.middleeastbriefing.com/news/uae-launches-new-ai-driven-government-planning-cycle/))
- **UAE Ranked #1 Globally for AI Adoption (Q1 2026):** Microsoft's AI Diffusion Report Q1 2026 ranked UAE first globally for the third consecutive time with a 70.1% adoption rate, growing at nearly four times the global average. ([Sharjah24](https://sharjah24.ae/en/Articles/2026/05/08/AI-drives-UAE-development-and-global-leadership-in-2026))
- **UAE Defence Ministry AI Rollout:** Ministry of Defence announced AI-driven digital transformation projects across its operations. ([Filipino Times](https://filipinotimes.net/latest-news/2026/04/26/uae-defence-ministry-to-roll-out-ai-driven-digital-transformation-projects/))
- **AI Work Permit Screening — MoHRE (May 2026):** Ministry of Human Resources and Emiratisation (MoHRE) and the Federal Authority for Identity, Citizenship, Customs and Port Security launched an agentic AI and robotics system to screen work permit applicants, built on MoHRE's "Eye" AI platform. Early adopters report approvals in under 24 hours; 50% of workflows targeted for automation. ([Gulf News](https://gulfnews.com/uae/people/uae-launches-ai-and-robotics-project-to-boost-labour-market-productivity-1.500524348)) ([Khaleej Times](https://www.khaleejtimes.com/uae/uae-to-use-ai-robotics-to-screen-work-permit-applicants-from-may))

## Private Sector Developments

- **Dubai Agentic AI Private Sector Plan (May 4):** Sheikh Hamdan bin Mohammed launched a two-year initiative to embed agentic AI across all of Dubai's private sector. Dubai Chamber of Commerce directed to establish AI company incubators, dedicated funds, and specialist training tracks for executives, technical implementers, and the general workforce. ([Media Office UAE](https://www.mediaoffice.ae/en/news/2026/may/04-05/hamdan-bin-mohammed-launches-dubai-private-sector-shift-to-agentic-ai-within-two-years)) ([The National](https://www.thenationalnews.com/news/uae/2026/05/04/dubai-unveils-plan-to-integrate-agentic-ai-in-private-sector-to-secure-global-competitive-edge/))
- **Stargate UAE — 5 GW AI Campus Under Construction:** G42, OpenAI, Oracle, NVIDIA, Cisco, and SoftBank are building a 5 GW AI campus across 10 square miles in Abu Dhabi. First 200 MW cluster expected online imminently; first-batch US AI chips have arrived. ([Gulf News](https://gulfnews.com/uae/al-otaiba-uae-receives-first-batch-of-next-generation-us-ai-chips-under-strategic-partnership-1.500534873)) ([Khaleej Times](https://www.khaleejtimes.com/business/tech/5gw-uae-us-ai-campus-under-construction))
- **OpenAI + G42 UAE-Specific ChatGPT:** OpenAI is in advanced talks with G42 to build a UAE-specific ChatGPT fine-tuned on the local Arabic dialect and configured for UAE government use — one of the first country-specific ChatGPT deployments globally. ([Semafor](https://www.semafor.com/article/02/06/2026/openai-in-talks-with-abu-dhabis-g42-to-create-specialized-chatgpt-version-for-uae))
- **G42 New Operating Model for AI Sovereignty:** G42 unveiled a new operating model for deploying AI sovereignty internationally, including securing US government approval for advanced AI chip exports. ([The National](https://www.thenationalnews.com/future/technology/2026/01/20/abu-dhabis-g42-unveils-new-operating-model-to-deploy-ai-sovereignty/))
- **Microsoft UAE Expansion (2026-2029):** Microsoft committed over $7.9 billion in UAE spending 2026-2029, including $5.5 billion in capital for AI and cloud infrastructure via Khazna Data Centers. 200 MW datacenter expansion expected online by end of 2026. ([Microsoft](https://blogs.microsoft.com/on-the-issues/2025/11/03/microsofts-15-2-billion-usd-investment-in-the-uae/))
- **10 AI Systems for UAE Residents (May 2026):** Digital Dubai catalogued 10 AI systems being rolled out for residents, spanning violation detection to smart city operations. ([Digital Dubai](https://www.digitaldubai.ai/dubai-updates/uae-10-ai-systems-residents-life-easier-catch-violators-may-2026))

## Funding & Investment

- **AppliedAI Pre-Series B (Mubadala-led):** Abu Dhabi-based AppliedAI raised a Pre-Series B round led by Mubadala's MENA Venture Capital Fund and Arbor Ventures to scale its enterprise AI platform "Opus" for mission-critical operations globally. ([Gulf News](https://gulfnews.com/business/markets/abu-dhabi-ai-firm-appliedai-secures-mubadala-backing-to-scale-opus-platform-1.500417239)) ([Wamda](https://www.wamda.com/2026/01/appliedai-raises-pre-series-b-scale-enterprise-ai-platform))
- **Abu Dhabi $100M+ AI Sovereign Capital Signal:** Abu Dhabi's AI-focused sovereign capital is reshaping startup funding priorities, with deep technical credibility becoming the primary filter for serious capital pools. ([LAFFAZ](https://laffaz.com/abu-dhabi-ai-funding-signal-startups/))
- **Abu Dhabi AI Company Growth:** AI companies in Abu Dhabi jumped 67% from mid-2024 to mid-2025, reaching approximately 700 companies total. ([Startup Genome](https://startupgenome.com/ecosystems/abu-dhabi))
- **UAE AI Investment: $96B GDP Contribution Projected by 2031:** UAE domestic AI capital projected to contribute $96 billion to GDP by 2031 — described as the largest AI investment cycle in the country's history. ([Digital Dubai](https://www.digitaldubai.ai/dubai-updates/uae-ai-largest-investment-magnet-history-domestic-capital-96-billion-gdp-2031))
- **G42 Vietnam Deal ($1B):** G42 signed a $1 billion deal to develop sovereign AI and data centres in Vietnam, extending UAE-origin AI infrastructure internationally. ([The National](https://www.thenationalnews.com/future/technology/2026/02/09/g42-ai-vietnam/))

## Partnerships & International Collaboration

- **UAE-US AI Acceleration Partnership — First Chips Arrive (May 2026):** First batch of next-generation US AI chips has arrived in the UAE under the bilateral AI Acceleration Partnership. The US-UAE interagency working group held its first formal meeting in April 2026. ([Gulf News](https://gulfnews.com/uae/al-otaiba-uae-receives-first-batch-of-next-generation-us-ai-chips-under-strategic-partnership-1.500534873)) ([US State Dept](https://www.state.gov/releases/office-of-the-spokesperson/2026/04/the-first-u-s-uae-ai-acceleration-partnership-interagency-working-group-meeting))
- **UAE-India AI & Supercomputing Cooperation (May 15):** PM Modi visited Abu Dhabi on May 15, 2026. Expanded cooperation formalized in AI, supercomputing, maritime infrastructure, and strategic industries. ([FinTech Biz News](https://www.fintechbiznews.com/govtregulators/indiauae-boosts-coop-in-ai-supercomputing-investment-energy-defence))
- **G42 + MBZUAI + Cerebras — AI Supercomputer in India:** G42, MBZUAI, and Cerebras announced a landmark AI supercomputer project in India at the AI Impact Summit 2026 in New Delhi, partnering with India's Centre for Development of Advanced Computing. ([Abu Dhabi Media Office](https://www.mediaoffice.abudhabi/en/technology/g42-mohamed-bin-zayed-university-of-artificial-intelligence-and-cerebras-partner-with-centre-for-development-of-advanced-computing-to-establish-ai-supercomputer-in-india/))
- **UAE-South Korea $65B Investment, Defence, and AI Partnership:** UAE and South Korea sealed a $65 billion partnership covering investment, defence, and AI cooperation. ([Economy Middle East](https://economymiddleeast.com/news/uae-south-korea-65-billion-defense-nuclear-deal-2026/))
- **US-UAE MOU on AI and Energy:** The US and UAE signed a memorandum of understanding expanding cooperation on AI and energy. ([The Hill](https://thehill.com/policy/energy-environment/5588362-us-uae-ai-burgum/))
- **G42 + Publicis Sapient Enterprise AI:** G42 and Publicis Sapient partnered to accelerate enterprise AI deployment across UAE and the Global South. ([TechAfrica News](https://techafricanews.com/2026/02/25/g42-and-publicis-sapient-partner-to-accelerate-enterprise-ai-deployment-across-uae-and-global-south/))
- **MTestHub UAE Partnership (May 15):** MTestHub announced a strategic UAE partnership to support AI-driven workforce building and transformation. ([Zawya](https://www.tradingview.com/news/reuters.com,2026-05-15:newsml_Zaw8dCFtT:0-zawya-mtesthub-announces-strategic-uae-partnership-initiative-to-support-ai-driven-workforce-building-transformation/))

## Regulatory & Ethics Updates

- **UAE AI Act 2026 (Effective March 2026):** UAE enacted the world's first comprehensive national AI legislation. Four-tier risk-based framework applies to all businesses deploying AI. Highlights:
  - Tier 3 (High Risk): annual third-party algorithm audits, quarterly bias testing, board-reporting AI Ethics Officer, 72-hour incident notification, model cards, right-to-explanation for automated decisions.
  - Self-assessment deadline: September 2026 for all businesses.
  - Penalties: up to AED 10 million for non-compliance.
  - ([Digital Dubai](https://www.digitaldubai.ai/dubai-updates/dubai-ai-act-2026-comprehensive-guide)) ([6clicks](https://www.6clicks.com/resources/blog/uae-ai-act-2026-tiered-risk-compliance-regulated-businesses))
- **UAE Financial AI Compliance Tightening:** Financial sector AI compliance obligations tightening toward a September 2026 enforcement threshold across banking and fintech AI deployments. ([Kiteworks](https://www.kiteworks.com/regulatory-compliance/uae-financial-ai-compliance-2026-stack/))
- **AI Ethics Charter (Ministry of Energy, May 11):** UAE Ministry of Energy and Infrastructure signed an AI Charter at the First AI Forum committing to responsible AI use across energy, infrastructure, and transportation sectors. ([Voice of Emirates](https://www.voiceofemirates.com/en/emirates/2026/05/11/a-new-roadmap-to-accelerate-the-use-of-artificial-intelligence-in-government-services-in-the-uae/))
- **UAE International AI Policy Stance:** UAE continues positioning as a bridge between global AI governance frameworks, emphasizing fairness, accountability, transparency, and human-centric values. ([UAE Legislation Portal](https://uaelegislation.gov.ae/en/policy/details/uae-s-international-stance-on-artificial-intelligence-policy))

## Research & Academia

- **MBZUAI K2 Think V2 Launch:** MBZUAI, G42, and Cerebras Systems released K2 Think V2 — a 70-billion-parameter sovereign reasoning model built on the K2-V2 base. UAE's first fully sovereign next-generation reasoning system. ([PR Newswire](https://www.prnewswire.com/news-releases/mbzuai-launches-k2-think-v2-uaes-fully-sovereign-next-generation-reasoning-system-302671460.html)) ([PYMNTS](https://www.pymnts.com/artificial-intelligence-2/2026/uaes-mbzuai-launches-fully-sovereign-ai-model/))
- **MBZUAI 2026 Commencement:** Khaled bin Mohamed bin Zayed attended the 2026 commencement — the fifth and largest class, 140 graduates from 23 countries across Computer Science, Computer Vision, Machine Learning, NLP, and Robotics. New Ph.D. and M.Sc. cohorts inaugurated. ([Abu Dhabi Media Office](https://www.mediaoffice.abudhabi/en/crown-prince-news/khaled-bin-mohamed-bin-zayed-attends-mohamed-bin-zayed-university-of-artificial-intelligence-2026-commencement-ceremony/))
- **Hub71+ AI Ecosystem Expansion:** Hub71 expanded its AI startup program backed by AWS, Google for Startups, AI71, Core42, NVIDIA, HPE, MBZUAI, and 42 Abu Dhabi. ([Hub71](https://www.hub71.com/))
- **UAE AI Talent Pipeline:** UAE accelerated AI talent development with MBZUAI as the anchor institution, shaping graduates across multiple AI sub-disciplines. ([Arabian Business](https://www.arabianbusiness.com/business/education/uae-accelerates-ai-talent-development-as-mbzuai-shapes-future-tech-leaders))

## Sources

1. [Half of UAE government services powered by AI — The National](https://www.thenationalnews.com/news/uae/2026/04/23/uae-to-launch-new-ai-powered-government-model-within-two-years/)
2. [Sheikh Mohammed: 50% of UAE govt services on AI agents — Khaleej Times](https://www.khaleejtimes.com/uae/government/sheikh-mohammed-announces-50-of-uae-govt-services-to-run-on-ai-agents-in-2-years)
3. [UAE targets agentic AI for half of government operations — Computer Weekly](https://www.computerweekly.com/news/366642372/UAE-targets-agentic-AI-to-power-half-of-government-operations)
4. [New roadmap to accelerate AI in UAE government services — Voice of Emirates](https://www.voiceofemirates.com/en/emirates/2026/05/11/a-new-roadmap-to-accelerate-the-use-of-artificial-intelligence-in-government-services-in-the-uae/)
5. [AI drives UAE global leadership in 2026 — Sharjah24](https://sharjah24.ae/en/Articles/2026/05/08/AI-drives-UAE-development-and-global-leadership-in-2026)
6. [UAE Defence Ministry AI transformation — Filipino Times](https://filipinotimes.net/latest-news/2026/04/26/uae-defence-ministry-to-roll-out-ai-driven-digital-transformation-projects/)
7. [UAE agentic AI and robotics for labour market — Gulf News](https://gulfnews.com/uae/people/uae-launches-ai-and-robotics-project-to-boost-labour-market-productivity-1.500524348)
8. [UAE AI, robotics for work permit screening — Khaleej Times](https://www.khaleejtimes.com/uae/uae-to-use-ai-robotics-to-screen-work-permit-applicants-from-may)
9. [Hamdan launches Dubai private sector agentic AI initiative — Media Office UAE](https://www.mediaoffice.ae/en/news/2026/may/04-05/hamdan-bin-mohammed-launches-dubai-private-sector-shift-to-agentic-ai-within-two-years)
10. [Dubai integrates agentic AI in private sector — The National](https://www.thenationalnews.com/news/uae/2026/05/04/dubai-unveils-plan-to-integrate-agentic-ai-in-private-sector-to-secure-global-competitive-edge/)
11. [UAE receives first US AI chips, Stargate campus underway — Gulf News](https://gulfnews.com/uae/al-otaiba-uae-receives-first-batch-of-next-generation-us-ai-chips-under-strategic-partnership-1.500534873)
12. [5GW UAE-US AI campus under construction — Khaleej Times](https://www.khaleejtimes.com/business/tech/5gw-uae-us-ai-campus-under-construction)
13. [Stargate UAE launch — G42](https://www.g42.ai/resources/news/global-tech-alliance-launches-stargate-uae)
14. [G42 new AI sovereignty operating model — The National](https://www.thenationalnews.com/future/technology/2026/01/20/abu-dhabis-g42-unveils-new-operating-model-to-deploy-ai-sovereignty/)
15. [G42 US chip export approval — G42](https://www.g42.ai/resources/news/g42-receives-us-approval-advanced-ai-chip-exports-enabling-full-scale-deployment-trusted-ai-infrastructure)
16. [OpenAI and G42 UAE-specific ChatGPT — Semafor](https://www.semafor.com/article/02/06/2026/openai-in-talks-with-abu-dhabis-g42-to-create-specialized-chatgpt-version-for-uae)
17. [Microsoft $15.2B UAE investment — Microsoft On the Issues](https://blogs.microsoft.com/on-the-issues/2025/11/03/microsofts-15-2-billion-usd-investment-in-the-uae/)
18. [AppliedAI Pre-Series B, Mubadala-led — Gulf News](https://gulfnews.com/business/markets/abu-dhabi-ai-firm-appliedai-secures-mubadala-backing-to-scale-opus-platform-1.500417239)
19. [AppliedAI Pre-Series B — Wamda](https://www.wamda.com/2026/01/appliedai-raises-pre-series-b-scale-enterprise-ai-platform)
20. [Abu Dhabi $100M AI Signal — LAFFAZ](https://laffaz.com/abu-dhabi-ai-funding-signal-startups/)
21. [UAE AI largest investment magnet — Digital Dubai](https://www.digitaldubai.ai/dubai-updates/uae-ai-largest-investment-magnet-history-domestic-capital-96-billion-gdp-2031)
22. [G42 Vietnam $1B AI deal — The National](https://www.thenationalnews.com/future/technology/2026/02/09/g42-ai-vietnam/)
23. [First US-UAE AI Acceleration Partnership working group meeting — US State Dept](https://www.state.gov/releases/office-of-the-spokesperson/2026/04/the-first-u-s-uae-ai-acceleration-partnership-interagency-working-group-meeting)
24. [India-UAE AI and supercomputing cooperation — FinTech Biz News](https://www.fintechbiznews.com/govtregulators/indiauae-boosts-coop-in-ai-supercomputing-investment-energy-defence)
25. [G42 + MBZUAI + Cerebras AI supercomputer in India — Abu Dhabi Media Office](https://www.mediaoffice.abudhabi/en/technology/g42-mohamed-bin-zayed-university-of-artificial-intelligence-and-cerebras-partner-with-centre-for-development-of-advanced-computing-to-establish-ai-supercomputer-in-india/)
26. [UAE-South Korea $65B AI partnership — Economy Middle East](https://economymiddleeast.com/news/uae-south-korea-65-billion-defense-nuclear-deal-2026/)
27. [US-UAE MOU on AI and energy — The Hill](https://thehill.com/policy/energy-environment/5588362-us-uae-ai-burgum/)
28. [G42 + Publicis Sapient enterprise AI — TechAfrica News](https://techafricanews.com/2026/02/25/g42-and-publicis-sapient-partner-to-accelerate-enterprise-ai-deployment-across-uae-and-global-south/)
29. [MTestHub UAE AI workforce partnership (May 15) — Zawya](https://www.tradingview.com/news/reuters.com,2026-05-15:newsml_Zaw8dCFtT:0-zawya-mtesthub-announces-strategic-uae-partnership-initiative-to-support-ai-driven-workforce-building-transformation/)
30. [UAE AI Act 2026 complete guide — Digital Dubai](https://www.digitaldubai.ai/dubai-updates/dubai-ai-act-2026-comprehensive-guide)
31. [UAE AI Act 2026 tiered risk compliance — 6clicks](https://www.6clicks.com/resources/blog/uae-ai-act-2026-tiered-risk-compliance-regulated-businesses)
32. [UAE Financial AI Compliance 2026 — Kiteworks](https://www.kiteworks.com/regulatory-compliance/uae-financial-ai-compliance-2026-stack/)
33. [UAE International AI Policy Stance — UAE Legislation Portal](https://uaelegislation.gov.ae/en/policy/details/uae-s-international-stance-on-artificial-intelligence-policy)
34. [MBZUAI K2 Think V2 launch — PR Newswire](https://www.prnewswire.com/news-releases/mbzuai-launches-k2-think-v2-uaes-fully-sovereign-next-generation-reasoning-system-302671460.html)
35. [UAE MBZUAI launches sovereign AI model — PYMNTS](https://www.pymnts.com/artificial-intelligence-2/2026/uaes-mbzuai-launches-fully-sovereign-ai-model/)
36. [MBZUAI 2026 commencement ceremony — Abu Dhabi Media Office](https://www.mediaoffice.abudhabi/en/crown-prince-news/khaled-bin-mohamed-bin-zayed-attends-mohamed-bin-zayed-university-of-artificial-intelligence-2026-commencement-ceremony/)
37. [UAE accelerates AI talent via MBZUAI — Arabian Business](https://www.arabianbusiness.com/business/education/uae-accelerates-ai-talent-development-as-mbzuai-shapes-future-tech-leaders)
38. [Hub71+ AI ecosystem — Hub71](https://www.hub71.com/)
