The transformational impact of artificial intelligence (AI) in defence is no longer debatable – it’s inevitable. The critical question is how to move beyond theoretical possibilities to achieve exponential gains in military capability and readiness. 

AI’s role in modern warfare extends far beyond the traditional concepts of speed and efficiency. At its core, AI is revolutionising how military forces operate, enabling them to make faster, more accurate decisions, and better anticipate and respond to threats. The strategic value of AI is in its ability to turn data into actionable insights, enhancing decision-making speed, precision, and ultimately, military success.

The economic impact of AI is clear. In the next five years, AI is expected to contribute a staggering $15tn to the global economy1, with defence and aerospace sectors leading the way in its adoption. In defence alone, AI’s contribution is expected to grow from $25.43bn in 2024 to $65.43bn by 2034, solidifying its central role in the future of military capabilities.

Yet, AI in defence is not just about adoption — it’s about strategic integration. Unlike consumer-oriented AI applications, defence AI must meet exceptionally high standards of reliability, transparency, and cyber-resilience.

The UAE’s approach to AI integration in defence offers valuable insights. Rather than pursuing AI for its own sake, the focus has been on building comprehensive capabilities that enhance both operational effectiveness and technological capability.

The recent developments in AI-powered decision support systems between the UAE and France demonstrate how targeted investment in AI can contribute to securing and building local expertise.

Key trends reshaping AI in defence

Three key trends are reshaping the defence AI landscape. First, the sophistication of AI in command-and-control (C2) systems is enabling faster, more informed decision-making in critical situations.

Gone are the days when military leaders had to sift through overwhelming amounts of data manually. With AI, real-time data analysis and scenario simulation provide military leaders with actionable insights, reducing the time between decision and action — a critical advantage in modern warfare.

Second, AI is redefining operational readiness by enhancing efficiency and agility in preparation for conflict. With AI-driven predictive maintenance and optimised decision-making, armed forces can ensure they are always mission-ready, minimising downtime and resource waste. This capability allows military forces to proactively address maintenance needs and be prepared for any operational requirement.

Third, AI-powered autonomous systems are creating new possibilities for risk reduction and operational efficiency. AI is already enhancing the capabilities of unmanned aerial vehicles (UAVs) that can conduct complex missions, including reconnaissance, surveillance, and logistics, and reconfigure remotely. These systems can navigate difficult terrains, provide real-time intelligence, and carry out high-risk missions while keeping personnel out of harm’s way.

Quantum computing’s role in enhancing encryption and operational precision further strengthens these systems.

Furthermore, AI enables ‘capability amplification’ — allowing armed forces to achieve more with the same equipment. This is particularly crucial in an era of high-intensity conflicts, rising threats and constrained budgets, where efficiency and adaptability are paramount. AI-driven command centres, for instance, are already enhancing the agility and effectiveness of military coalitions worldwide.

The need for hybrid AI in defence

The integration of AI in defence presents very unique challenges. AI used for sovereign tasks, particularly in defence, is very different from data-intensive models mainly used in consumer AI. This is why we have developed our own hybrid AI, which bridges two approaches: a machine learning method with statistical processing of more or less vast amounts of data, and a rule-based method also referred to as symbolic AI, which operates on pre-defined rules and logic.

This helps ensure a trusted AI which is transparent and not a black box.

At Thales, through our cortAIx accelerator, which brings together 600 engineers and research experts, we are developing an AI which is hybrid, explainable, ‘cyber’ secured and frugal. Unlike consumer-oriented AI, cortAIx integrates AI into mission-critical systems where security, resilience, and compliance with strict regulatory standards are non-negotiable.

Our approach relies on deep technological expertise across five critical domains: air, land, sea, space, and cyber.

In these domains, we must be able to optimise AI solutions for constrained environments and directly embed them into our systems, such as on fighter jets, where energy, computational power, and connectivity are very limited. It also requires strong cybersecurity expertise to guarantee data security and sovereignty. We can use sovereign algorithms but also train them locally with the sensitive data of the countries within which we operate.

The focus on responsible AI

Today, autonomous systems powered by AI are changing the way defence operations are conducted. They are used for reconnaissance, surveillance, logistics, and military missions, performing complex tasks and reducing human risk. Unmanned aerial vehicles (UAVs) are a prime example of how AI is enhancing operational efficiency. They can navigate challenging terrains, identify targets with precision, and complete missions that would otherwise be high-risk for military personnel.

Countries in the Middle East, such as the UAE, for example, have been at the forefront of employing AI-enhanced UAVs alongside manned counterparts3 for application in critical areas such as maritime security, where unmanned systems provide continuous, real-time intelligence gathering, even in remote or hazardous environments.

While AI can significantly reduce human error, it is crucial to ensure that these systems are held accountable and aligned with ethical principles. It is important to balance AI’s capabilities with human oversight, ensuring that military leaders remain in complete control of critical decisions while leveraging AI to improve outcomes.

To ensure the effective integration of AI into defence, nations must invest not only in technology but also in developing the expertise to manage and maintain these advanced systems. The UAE’s ongoing commitment to developing a workforce skilled in both AI and quantum technologies is a key differentiator that will ensure the country remains at the forefront of the defence technology revolution.

The path forward requires a comprehensive approach to AI integration – one that combines technological innovation with strategic vision. Success will depend on adopting new technologies and developing the expertise and infrastructure needed to maintain sovereign control over critical systems.

The ability to balance innovation with security, automation with human judgment, and responsibility with advancement will define the future of defence.

The writer is the president and CEO, Thales International.

Read: Thales’ Elias Merrawe on shaping the future of flight

Dubai International (DXB) is set to experience one of its busiest travel periods as it welcomes more than 2.5 million travellers between February 20 and 28.

The airport is expected to handle an average of 280,000 passengers daily, with numbers peaking at over 295,000 on Saturday, February 22. This surge in travellers is driven by a combination of global events and school holidays across key markets.

To manage the high volume of passengers, authorities are urging travellers to utilise the Dubai Metro for transportation to and from the airport, as well as between Terminals 1 and 3.

In addition, travellers arriving at Terminal 1 should note that the Arrivals bus stop will be out of service starting 21 February.

Smooth travels to and from DXB

Alternative transport options and updated bus schedules can be accessed through the Roads and Transport Authority (RTA) website.

The oneDXB community, consisting of airport teams and stakeholders, is working collaboratively to ensure smooth operations and efficient passenger flows during this peak period at the world’s busiest international airport.

Read: Dubai welcomes 18.72 million international visitors in 2024

First Abu Dhabi Bank (FAB), the UAE’s global financial institution, has launched its 2025 Global Investment Outlook report, forecasting that the Gulf Cooperation Council (GCC) countries, particularly the UAE, will outperform global economic growth in 2025.

The growth is attributed to strategic investments, economic diversification, and robust expansion in the non-oil sector.

The report, titled Shaping the Future of Investments: Artificial Intelligence and the Interest Rate Environment, predicts the GCC’s gross domestic product (GDP) growth rate will nearly double from 2.1 per cent in 2024 to 4.2 per cent in 2025.

The UAE’s GDP is projected to rise from 4.5 per cent to 5.6 per cent, outpacing the International Monetary Fund’s global growth forecast of 3.2 per cent.

Michel Longhini, group head of Global Private Banking at FAB, stated: “The 2025 global economic environment presents unique challenges, but the GCC region continues to stand out as a beacon of resilience and opportunity.

“Our 2025 Global Investment Outlook report offers a comprehensive roadmap for clients to capitalise on emerging trends, from AI-driven transformation to green energy investments and robust regional market performance, while navigating the complexities of the global economy.”

Other key findings of the FAB report

The report highlights that artificial intelligence is expected to reshape industries, creating significant investment opportunities.

Unlike previous tech booms, AI’s practical applications are already driving mergers and acquisitions.

National initiatives such as the UAE’s Vision 2031 and Saudi Arabia’s Vision 2030 are fostering growth in technology, startups, and the non-oil sector. GCC equity markets are expected to deliver returns of 12 to 13 per cent in 2025, backed by recovery in key sectors and financial stability.

The Middle East is transitioning from a major oil exporter to a global hub for green energy. Investments in renewable power generation, grids, and storage are projected to rise from $1.2tn in 2024 to $2.4tn by 2030.

The region’s energy investments in 2024 are expected to reach $175bn, with clean energy accounting for 15 per cent.

India’s consistent growth and China’s shifting market dynamics offer strong investment prospects. However, the bank recommends a diversified approach to mitigate macroeconomic risks while seizing these opportunities.

The report anticipates strong performance in GCC equities, MENA fixed income, and global real estate. It also identifies private markets as an attractive avenue for diversification and higher returns.

The 2025 Global Investment Outlook report, created by FAB’s team of experts, provides a comprehensive, data-driven analysis of emerging trends such as AI and the energy transition in the Middle East, as well as developments across global financial markets and asset classes.

Read: FAB reports Dhs17.1bn in net profit for 2024

DP World reported its highest container and breakbulk cargo volumes at Jebel Ali Port since 2015, solidifying its position as a leading trade and logistics hub in the region.

The port handled 15.5 million twenty-foot equivalent units (TEUs) in 2024, marking an increase of 1 million TEUs compared to the previous year.

This performance represents the highest throughput at Jebel Ali since 2015 and accounts for nearly 18 per cent of DP World’s total global container throughput of 88.3 million TEUs.

In addition to containers, breakbulk cargo also saw substantial growth, increasing by 23 per cent year-on-year to reach 5.4 million metric tonnes (MTs).

This performance represents the second-highest level of breakbulk cargo throughput in nearly a decade.

Abdulla Bin Damithan, CEO and MD of DP World GCC, commented, “This performance reflects the strength of our world-class ports and logistics infrastructure.

The 15.5 million TEUs handled at Jebel Ali in 2024, along with the strong growth in breakbulk cargo, show our capacity to meet increasing demand in both sectors.

“With a thriving ecosystem in Jebel Ali Free Zone and strong ties with major global economies, we are well-positioned to support the region’s growing trade volumes. Despite global uncertainties, we remain committed to investing in advanced infrastructure to facilitate trade.”

The growth in container throughput was largely driven by robust local and regional demand, particularly from Asia and the Indian Subcontinent, as well as new shipping services that improved global connectivity. Efficient operations ensured smooth cargo flow, even amid challenges such as the Red Sea crisis.

DP World: Breakbulk cargo

Breakbulk cargo growth was propelled by increased regional investments in infrastructure, renewable energy, and industrial development. Jebel Ali handled significant shipments of wind turbines, solar panels, heavy machinery, and construction materials, with imports making up 80 per cent of total breakbulk shipments. The remaining outbound shipments were dominated by sugar, iron, and steel.

The region’s growing infrastructure projects continue to fuel demand for breakbulk cargo, with planned construction projects in the UAE alone valued at approximately $112bn in 2024.

In 2024, Jebel Ali Port also played a critical role in supporting major international projects. This included facilitating 45,000 metric tonnes of bagged wheat flour shipments for humanitarian aid to the Middle East and Africa, consolidating structural steel exports for an aluminium recycling plant in the US, and streamlining logistics for Liberia’s largest mining project by handling the export of 60 per cent of its structural components.

Jebel Ali Port boasts an annual container capacity of 19.4 million TEUs across four terminals, more than 100 berths, and a 25-kilometre quay length.

The port also includes dedicated terminals for breakbulk, Ro-Ro, and heavy-lift cargo.

Additionally, Dubai’s Mina Al Hamriya Port complements these capabilities by handling bulk and breakbulk cargo and accommodating a wide range of vessel types.

Globally, DP World’s network of ports and terminals achieved a record 88.3 million TEUs in 2024, an 8.3 per cent year-on-year increase, demonstrating the company’s resilience amid macroeconomic challenges and uncertainty in the global trade outlook.

In a strategic move to modernise dispute resolution, the Dubai International Arbitration Centre (DIAC) has teamed up with Opus 2 to introduce advanced digital tools into the arbitration process. This partnership aims to streamline operations, enhance security, and offer faster, more efficient services.

From e-filing to virtual hearings, the collaboration promises to reshape how disputes are handled in the region, making arbitration more accessible, cost-effective, and future-ready.

In this interview, Jehad Kazim, executive director of DIAC, shares how these innovations will transform the dispute resolution landscape and support businesses, including SMEs, in navigating legal challenges, and her role as a female leader.

As the first Emirati woman to lead DIAC, how do you see your role in shaping the future of dispute resolution in the region?

I want to keep strengthening the role of DIAC as a forward-thinking, innovative, and inclusive institution. One of my key priorities is to foster collaboration between institutions, governments, and businesses to enhance the region’s dispute resolution framework. Strengthening partnerships across borders and sectors can create more robust, efficient, and cost-effective mechanisms that reflect the region’s diverse legal, cultural, and economic dynamics.

Furthermore, I am committed to integrating technological advancements into the dispute resolution process. DIAC will continue to innovate by embracing digital platforms for case management and virtual hearings ensuring that arbitration and mediation remain relevant and accessible to all.

Another area of focus is diversity and inclusion. I strongly believe that having diverse perspectives in the dispute-resolution process is key to its success. By embracing diversity in all its forms, we ensure that arbitration remains relevant, resilient, and responsive to the needs of all parties involved.

Through collaboration, innovation, and a commitment to diversity, I am excited to contribute to the dispute resolution landscape that can meet the evolving needs of businesses, governments, and individuals in the region and beyond.

DIAC recently partnered with Opus 2 to introduce digital solutions in arbitration. How will this improve the dispute resolution process?

The partnership between DIAC and Opus 2 is a strategic leap into the future of arbitration. By integrating Opus 2’s advanced legal technology, we’re creating a digital ecosystem that redefines efficiency, accessibility, and security in dispute resolution.

At its core, this collaboration introduces a state-of-the-art platform that centralises key functions like e-filing, case registration, and document submission. This eliminates administrative bottlenecks, reduces delays, and ensures seamless collaboration between parties, arbitrators, and the DIAC Secretariat.

The platform is designed with scalability and cybersecurity in mind, ensuring it can handle growing caseloads while safeguarding sensitive data.

DIAC users will also get access to Opus 2’s broader tech suite to support virtual hearings, shared electronic bundles, real-time transcription, and electronic presentation of evidence.

By embracing technology, DIAC is positioning itself as a global leader in dispute resolution, offering a modern, efficient, and secure experience that meets the needs of today’s businesses and anticipates the demands of tomorrow.

What are some of the most common disputes handled by DIAC, and how do you ensure quick and efficient resolutions?

DIAC handles a wide range of disputes across key sectors such as construction, real estate, energy, finance, and technology. These industries are the backbone of the MEASA region’s economy, and the disputes they generate often involve complex and high-value claims.

When it comes to contract types, construction contracts are the most common, accounting for 40 per cent of cases in 2023. Real estate and property contracts follow closely, with disputes typically arising from lease agreements, property sales, or development projects. Other frequent contract types include service and provider agreements, sales and purchase agreements, and partnership and ownership contracts.

To provide parties with quick and efficient solutions, the 2022 DIAC Arbitration Rules introduced expedited proceedings to allow parties to resolve disputes faster and at a lower cost, which is particularly beneficial for small-value or straightforward cases. Our panel of arbitrators includes experts with deep industry knowledge, ensuring that disputes are resolved by professionals who understand the nuances of each sector and contract type.

How does DIAC support businesses, particularly SMEs, in resolving disputes effectively?

SMEs are vital to the regional economy, but they often face unique challenges when it comes to dispute resolution. Limited financial and legal resources can make traditional arbitration daunting. DIAC addresses these challenges by offering tailored solutions that prioritise efficiency, affordability and accessibility.

Our panel of arbitrators includes professionals with expertise in industries relevant to SMEs, ensuring that disputes are resolved by individuals who understand their commercial realities.

The newly introduced virtual hearings and under-development digital tools reduce logistical burdens and costs, making arbitration more accessible for SMEs with limited resources. Additionally, mediation offers a collaborative and cost-effective alternative, helping parties reach amicable settlements without the animosity and time delays of traditional legal proceedings.

By providing reliable and efficient dispute resolution services, we ensure that SMEs can navigate disputes effectively while focusing on their core business activities.

With the rise of AI and digital case management, how do you see technology shaping the future of arbitration?

The potential of AI and digital case management to transform arbitration is immense. DIAC is actively exploring how these technologies can enhance the dispute resolution process; we are closely monitoring its development and considering how it can be applied to improve efficiency, transparency, and accessibility.

AI has the potential to automate routine tasks, freeing up time for arbitrators and legal teams to focus on more complex aspects of a case. Predictive analytics could also provide insights into case trends, helping parties make more informed decisions.

Digital case management platforms, like the one we’re developing with Opus 2, are already streamlining processes by centralising filings, submissions, and communications. These tools reduce delays and ensure all parties have real-time access to case updates, fostering greater transparency and trust.

Looking ahead, we see virtual hearings becoming even more sophisticated, making arbitration more accessible to parties across the globe. Blockchain technology could further enhance security, transparency and automation. While still in the early stages of adoption, blockchain can revolutionise arbitration.

What challenges do businesses typically face in arbitration, and what advice would you give to those unfamiliar with the process?

Businesses often face challenges in arbitration due to unclear dispute resolution clauses, unfamiliarity with procedural rules, and concerns about costs and delays. To navigate these challenges effectively, taking a proactive and strategic approach is essential.

Start by drafting clear and comprehensive arbitration clauses in contracts. Specify the arbitral institution (for example, DIAC), the arbitration rules governing the proceedings, the number of arbitrators, the seat of arbitration, the language of the arbitration and the governing law of contract to avoid procedural uncertainties.

Leverage institutional support. DIAC’s structured arbitration process, experienced arbitrators, and advanced digital case management tools provide a predictable and efficient resolution framework. Consider alternative mechanisms like expedited arbitration or mediation for faster and more cost-effective resolutions.

By taking these steps, businesses can minimise risks, reduce costs, and ensure a smoother dispute resolution process, ultimately protecting their commercial interests.