Abu Dhabi pushes deeper into AI with new investment firm

Abu Dhabi’s artificial intelligence council has launched MGX, a new technology investment firm that will accelerate the development and adoption of AI and advanced technologies through partnerships both in the UAE and globally.

The firm’s investment strategy will focus on three main verticals – AI infrastructure, semiconductors and AI core technologies and applications. It will build on Abu Dhabi’s existing investments in these areas and deploy capital alongside leading international technology and investment companies.

MGX, which is expected to surpass $100bn in assets under management, counts Abu Dhabi wealth fund Mubadala Investment Company and Group 42 as its founding partners.

The two entities have an extensive and robust investment foundation in sectors that are crucial to the new AI investment strategy.

“Our singular focus is accelerating AI’s responsible and inclusive development for the benefit of humanity, guided by Abu Dhabi’s global investment strategy for artificial intelligence,” said Sheikh Tahnoun bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and Chair of the Artificial Intelligence and Advanced Technology Council (AIATC).

Sheikh Tahnoun, who will chair the new company, said the new investment firm will advance the UAE’s role as a home for top technology talent, investors and entrepreneurs.

Abu Dhabi’s AI push

Meanwhile, the launch of MGX is the latest in a series of new initiatives from Abu Dhabi as the UAE pushes deeper into the AI sector. The Gulf state aims to become a global leader in testing and regulating AI technology.

Earlier this year, President Sheikh Mohamed bin Zayed Al Nahyan established the

AIATC. The council is responsible for developing and implementing policies and strategies related to research, infrastructure and investments in AI and advanced technology.

Furthermore, G42, the AI firm that is been at the forefront of the UAE’s push into AI, invested in Analog in January. Analog, a new edge computing company, leverages the power of edge computing to bring smart technology closer to the point of need.

The Abu Dhabi-based AI and cloud computing group also merged three of its key units – G42 Cloud, research and development arm Inception and ICT unit Injazat – into Core42 to deliver AI solutions and services on a national scale.

Pending regulatory approvals, its geo data and analytics unit Bayanat agreed to merge with Yahsat in December to create Space42 – an AI-powered space technology firm with a market capitalisation of more than Dhs15bn ($4bn) as of December 18, 2023.

G42 said Space42 is positioned to capture regional and international opportunities in geospatial and mobility solutions, satellite communications and business intelligence.

Read: UAE President establishes AI and Advanced Technology Council