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UAE leads global shift towards chief AI officers, says IBM and Dubai Future Foundation study

The report includes contributions from key UAE entities such as the Roads and Transport Authority (RTA) and Dubai Customs

Rajiv Pillai
Rajiv Pillai

15 July, 2025

UAE leads global shift towards chief AI officers, says IBM and Dubai Future Foundation study
Image: Getty Images

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The UAE is at the forefront of a growing global trend in artificial intelligence governance, with more organisations appointing chief AI officers (CAIOs) than any other country surveyed, according to a new global study by the IBM Institute for Business Value (IBV), conducted in collaboration with the Dubai Future Foundation (DFF).

The study, based on a global survey of over 600 CAIOs across 22 countries and 21 industries, reveals that 33 per cent of organisations in the UAE have appointed a CAIO, compared to the global average of 26 per cent. These leadership roles are proving valuable — organisations with a CAIO report 10 per cent higher return on investment (ROI) on AI spending. Where CAIOs lead a centralised or hub-and-spoke operating model, ROI rises by as much as 36 per cent.

The report features a foreword by Omar Sultan Al Olama, UAE Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, who emphasised the cultural and operational importance of AI leadership. “AI is not a singular breakthrough, it’s ten thousand small shifts. It’s cultural. It’s institutional. It’s a habit. The CAIO will be the one pushing that habit forward – across public administration, healthcare, education and logistics. More than a technologist, the CAIO is a translator between vision and execution, a bridge between strategy and science, and a steward of value across the enterprise.”

The report includes contributions from key UAE entities such as the Roads and Transport Authority (RTA) and Dubai Customs, showcasing a cross-sectoral view of AI strategy in the country.

“Dubai’s early adoption of the Chief AI Officer role reflects our national commitment to a responsible, future-ready government,” said Saeed Al Falasi, director of the Dubai Center for Artificial Intelligence.

“This study reinforces that CAIOs are strategic enablers and catalysts that drive the city’s vision for the future. By empowering these leaders with the right tools, we are setting the stage for scalable, measurable AI impact across key sectors in Dubai.”

Shukri Eid, VP and GM, IBM Gulf, Levant and Pakistan, added: “The UAE is setting a global benchmark by embedding Chief AI Officers within organisations, ensuring AI is a strategic enabler across sectors. This is a testament to the nation’s foresight in shaping a future-ready economy. As we continue our collaboration with the Dubai Future Foundation, IBM remains committed to helping organisations scale their AI capabilities to drive measurable, long-term impact.”

Lula Mohanty, managing partner, Middle East and Africa, IBM Consulting, said: “By appointing CAIOs early and giving them visibility and budget control, UAE organisations have laid a strong foundation for enterprise AI. The next step is execution, moving beyond pilots, embedding AI into core business functions and delivering measurable ROI. IBM is proud to partner with UAE clients on this next phase of their AI journey.”

Key findings: UAE CAIOs driving stronger results

UAE CAIOs benefit from stronger senior leadership support:

  • 90 per cent say they receive sufficient CEO support, vs. 80 per cent globally.

  • 86 per cent have broader C-suite backing, vs. 79 per cent globally.

  • 69 per cent were appointed internally, compared to 57 per cent globally.

Their roles are broader and more strategic:

  • 79 per cent control the AI budget (vs. 61 per cent globally).

  • 62 per cent prioritise building business cases (vs. 45 per cent globally).

  • 50 per cent oversee direct implementation of AI, in line with global peers.

  • However, 38 per cent of UAE CAIOs find implementation “very difficult”, higher than the global average of 30 per cent.

UAE CAIOs bring deep operational expertise:

  • 69 per cent have a background in data, mirroring global figures.

  • 48 per cent come from operations, compared to 38 per cent globally — reflecting an execution-oriented approach.

Balancing experimentation with accountability

While impact measurement is a priority, UAE CAIOs are not waiting for perfect metrics to act:

  • 76 per cent say their organisation risks falling behind without measurement of AI impact (vs. 72 per cent globally).

  • 74 per cent initiate AI projects even if results can’t yet be fully measured (vs. 68 per cent globally).

Room to scale

Despite the leadership momentum, AI adoption maturity is still developing:

  • 76 per cent of UAE organisations remain in the pilot stage, compared to 60 per cent globally — indicating significant growth potential in operationalising AI at scale.

The study also reflects broader national goals. As part of the UAE’s AI Strategy 2031, the country aims to become a global leader in artificial intelligence across sectors such as health, education, energy, and smart cities. This collaborative research from IBM and Dubai Future Foundation positions CAIOs as central to achieving that ambition.

For more insights and to access the full study, visit: IBM Institute for Business Value.

Diriyah Company awards $600m Diriyah Square retail contract to Salini Saudi Arabia

Diriyah Square will feature over 400 retail, dining, and leisure brands within a pedestrian-focused setting that blends modern experiences with Najdi-inspired architecture

Rajiv Pillai
Rajiv Pillai

15 July, 2025

Diriyah Company awards $600m Diriyah Square retail contract to Salini Saudi Arabia
Image: Getty Images

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Diriyah Company has awarded a SAR2.249bn ($600m) contract to Salini Saudi Arabia, a subsidiary of the Webuild Group, for the construction of Diriyah Square — a flagship retail district at the heart of the Diriyah masterplan.

Part of the wider “City of Earth” vision, Diriyah Square will feature over 400 retail, dining, and leisure brands within a pedestrian-focused setting that blends modern experiences with Najdi-inspired architecture. The project aims to redefine the retail and lifestyle offering in Diriyah and, more broadly, in Riyadh.

The contract marks Salini’s third major engagement on the Diriyah Square development. The company is currently advancing construction on one of the world’s largest underground car parks, with 10,500 spaces, integrated bus stations, taxi and VIP drop-off zones, and a four-lane underground gyratory road that connects the entire subterranean network. Salini is also nearing completion of structural works for key above-ground assets including hotels, branded residences, offices, and the Grand Mosque.

Under the new contract, Salini will construct 73 buildings across a total built-up area of 365,340 square metres, including 400 shell-and-core retail units. The scope of work includes facades, finishes, and fit-outs. Each structure will reflect traditional Najdi design principles to create an immersive pedestrianised retail environment that celebrates 300 years of cultural heritage.

Read: Saudi Arabia’s Diriyah awards $2bn contract for mixed-use district

Commenting on the latest milestone, Jerry Inzerillo, group CEO of Diriyah Company, said: “Diriyah Square is one of our most exciting, anticipated, and prestigious districts, and we are extremely pleased to have signed with Salini to deliver it, bringing their immense global experience to the table. It is yet another significant milestone in our development journey and will help set the stage for Diriyah Square’s retail spaces to welcome a diverse array of shoppers from our residential communities, surrounding office spaces, and the millions who visit us every year.”

Pietro Salini, CEO of Webuild, added: “We are proud to contribute to a project of such symbolic and strategic importance to Saudi Arabia. This will further strengthen our presence in the Kingdom and positively impact both the area and the local community. We are excited about developing this new phase of Diriyah Square, an integral part of an iconic project. The Webuild Group has been present in Saudi Arabia since 1966, delivering more than 90 projects. We remain committed to supporting the Kingdom in developing some of the world’s most complex infrastructure projects, particularly in areas such as civil buildings, sustainable mobility, and desalination.”

Commercial anchor

Diriyah Square serves as the commercial anchor of the larger SAR237bn ($63.2bn) Diriyah masterplan. It will connect international luxury brands with regional artisans and offer a mix of retail, cultural, and entertainment experiences. The square will house 400 of the 1,000 total retail outlets envisioned across the 14-square-kilometer development.

With this contract, Diriyah Company has now awarded contracts worth over SAR100bn ($26bn) since inception, including SAR20bn ($5bn) in the first half of 2025 alone.

When fully developed, Diriyah is expected to contribute SAR70bn ($18.6bn) to Saudi Arabia’s GDP, generate close to 180,000 jobs, and become home to around 100,000 residents. It will also feature cultural and entertainment landmarks such as the Royal Diriyah Opera House, the Diriyah Arena, museums, a university, the Royal Golf Club, and the Royal Equestrian & Polo Club.

Etihad’s route expansion: What’s behind the 7 new destinations?

Flights to these destinations will go on sale in the coming days, with services beginning in March 2026

Nida Sohail
Nida Sohail

15 July, 2025

Etihad’s route expansion: What’s behind the 7 new destinations?
Image credit: WAM/Website

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Etihad Airways, the national airline of the UAE, has announced seven new destinations as part of its continuing strategy to expand point-to-point connectivity and bring more travellers directly to Abu Dhabi.

The new routes include Almaty (Kazakhstan), Baku (Azerbaijan), Bucharest (Romania), Madinah (Saudi Arabia), Tbilisi (Georgia), Tashkent (Uzbekistan), and Yerevan (Armenia)—each chosen for its cultural significance, tourism potential, and growing demand for travel.

Read-Etihad launches flight to Atlanta, US; other route announcements

Flights to these destinations will go on sale in the coming days, with services beginning in March 2026. However, Madinah will launch earlier, in November 2025.

Strengthening Abu Dhabi as a global hub

These additions bring Etihad’s total number of new destinations for 2025 to 29, underscoring the airline’s ambition to strengthen Abu Dhabi’s position as a vibrant hub for tourism, culture, and commerce.

“Our goal is clear—we want to bring more people directly to Abu Dhabi,” said Antonoaldo Neves, Chief Executive Officer of Etihad Airways. “These new routes connect us to fast-growing, culturally rich regions and will help stimulate demand for tourism and trade in the UAE’s capital.

“From the spiritual significance of Madinah to the historic charm of Tbilisi and Yerevan, and the modern vibrancy of cities like Baku and Almaty, each destination adds depth to our growing network and attracts travellers with diverse interests.”

Neves added that launching 29 new routes in one year marks a “remarkable milestone” and showcases the airline’s commitment to supporting Abu Dhabi’s growth.

“Whether for business or leisure, guests can expect a seamless journey and world-class hospitality that reflects Etihad’s elevated service. These connections make it easier than ever to experience everything Abu Dhabi has to offer.”

Ongoing route expansion in 2025

So far in 2025, Etihad has celebrated inaugural flights to Prague, Warsaw, Sochi, and Atlanta. An additional 13 new routes are expected before the end of the year, continuing the airline’s aggressive growth strategy.

This announcement also follows Etihad’s recent reveal of three new seasonal summer destinations for 2026: Krakow (Poland), Salalah (Oman), and Kazan (Russia), which will operate during peak travel months.

Destination Highlights

Each new city on Etihad’s network offers unique cultural, historical, and leisure appeal:

  • Madinah, Saudi Arabia: One of Islam’s holiest cities, Madinah welcomes travellers with its serene atmosphere, striking architecture, and the revered Prophet’s Mosque, a major pilgrimage site. The city’s expanding infrastructure offers comfort and convenience for spiritual and leisure visitors alike.
  • Bucharest, Romania: Romania’s capital combines elegant architecture, vibrant culture, and bustling streets, making it a stylish and energetic destination with distinct Central European charm.
  • Tbilisi, Georgia: A city full of old-world charm and modern flair, Tbilisi sits along the Kura River and features colourful balconies, historic sulphur baths, and a thriving arts scene that reflects Georgia’s rich identity.
  • Yerevan, Armenia: One of the world’s oldest continuously inhabited cities, Yerevan is known for its pink stone buildings, wide squares, and dramatic mountain views. Its museums and open-air cafes celebrate Armenian culture and creativity.
  • Baku, Azerbaijan: Located on the Caspian Sea, Baku offers an eclectic mix of tradition and innovation—from centuries-old palaces to futuristic skyscrapers. Its seaside promenade and vibrant nightlife are popular with tourists and business travellers alike.
  • Almaty, Kazakhstan: A city framed by the Tian Shan mountains, Almaty features tree-lined boulevards, green parks, and access to nearby ski resorts. It blends natural beauty with a modern, cosmopolitan lifestyle.
  • Tashkent, Uzbekistan: Uzbekistan’s capital is a city of contrasts, with historic architecture, lively bazaars, and a rapidly modernizing skyline. Tashkent offers a window into Central Asia’s rich heritage and evolving future.

Further Expansion Announced in July

In an earlier announcement on July 2, 2025, Etihad revealed plans for seasonal flights to Kazan, Krakow, and Salalah, expanding its presence in Russia, Poland, and Oman, respectively.

These routes are part of the airline’s strategic push to capture high-demand leisure traffic during summer and winter travel periods.

10.2 million passengers in first half of 2025

Etihad’s network expansion aligns with its strong performance in 2025. The airline transported 1.8 million passengers in June, a 16 per cent increase compared to June 2024. Its load factor rose to 88 per cent, up from 86 per cent the previous year, showing the airline’s ability to match capacity with growing demand.

Etihad’s current fleet of 101 aircraft supports this expansion and allows it to enhance service reliability across its network, a WAM report said.

In total, 10.2 million passengers flew with Etihad in the first half of 2025, reflecting a 17 per cent increase year-on-year. The average load factor during this period was 87 per cent, reinforcing the airline’s momentum and operational efficiency.

“We are pleased to see continued momentum in our growth,” said Neves. “Our year-to-date figures show that more than 10 million guests have flown with us in 2025, and our rolling 12-month total has almost reached 20 million as our customers continue to place their trust in our service.”

Etihad’s June growth also included inaugural flights to Prague and Warsaw, and the resumption of seasonal routes to summer destinations such as Nice, Malaga, Mykonos, Santorini, and Antalya.

These 3 GCC sovereign wealth funds now have AUM over $1tn each: Global SWF

Globally, the top sovereign investor remains Norway’s Norges Bank Investment Management (NBIM), managing $1.76tn in assets

Gulf Business
Gulf Business

15 July, 2025

These 3 GCC sovereign wealth funds now have AUM over $1tn each: Global SWF
Image: Getty Images/ For illustrative purposes

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The Gulf Cooperation Council (GCC) is now home to three sovereign wealth funds with assets under management (AUM) exceeding $1tn each, according to the July 2025 rankings published by Global SWF, highlighting the region’s growing influence in global capital markets.

Topping the GCC list is Saudi Arabia’s Public Investment Fund (PIF), with AUM estimated at $1.15tn, followed by the Abu Dhabi Investment Authority (ADIA) with $1.11tn, and Kuwait Investment Authority (KIA), which just crossed the $1tn threshold with $1.002tn.

Globally, the top sovereign investor remains Norway’s Norges Bank Investment Management (NBIM), managing $1.76tn in assets. It is followed by China’s SAFE Investment Company and the China Investment Corporation, managing $1.41tn and $1.33tn, respectively.

PIF sees AUM increase among GCC SWFs despite profit drop

Despite a 60 per cent year-on-year drop in net profit, attributed to rising interest rates and mounting costs from delayed or scaled-down mega-projects, PIF saw its AUM increase by 18 per cent from SAR3.66 tn ($977bn) last year. According to Global SWF data, 37 per cent of the fund’s portfolio is committed to alternative assets including real estate, infrastructure, hedge funds and private equity.

PIF, which backs signature Saudi initiatives such as NEOM and the Red Sea Project, also holds major positions in Saudi Aramco, Saudi National Bank, and Softbank. It is targetting $2tn in AUM by 2030, a milestone that would make it the world’s largest sovereign wealth fund.

Close behind is the UAE’s ADIA, ranked fifth globally, with 32 per cent of its portfolio in alternative investments. Global SWF describes it as one of the world’s largest investors in real estate, infrastructure and private equity.

In its most recent annual review, ADIA stated a strategic shift in investment focus: “Our approach has moved toward maximising total returns across the portfolio, rather than relying on individual asset classes to outperform benchmarks.”

Kuwait’s KIA, ranked sixth worldwide, continues to diversify its holdings. With 23 per cent of its portfolio in alternative assets, the fund maintains stakes in leading international firms including BlackRock and Mercedes-Benz Group.

Global SWF’s July rankings reflect the shifting dynamics in sovereign wealth, with GCC funds increasingly commanding a larger share of global institutional capital, and positioning themselves as pivotal players in alternative investments and global economic transformation.

Read: PIF unveils Tasama Business Services Company to boost Saudi business ecosystem

Wizz Air responds to refund queries on X after Abu Dhabi exit

Wizz Air pivots its strategy toward more stable and profitable markets

Rajiv Pillai
Rajiv Pillai

15 July, 2025

Wizz Air responds to refund queries on X after Abu Dhabi exit

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Low-cost carrier Wizz Air is actively addressing refund requests from affected passengers on X (formerly Twitter), following its decision to suspend all flights to and from Abu Dhabi by 31 August 2025.

Following the announcement, numerous users took to X to seek clarity on cancellations and refunds.

In an official statement on X, the airline said: “Passengers with existing bookings beyond 31 August 2025 will be contacted directly via email with options for refunds or alternative travel arrangements. Customers who booked through third-party providers are advised to contact their respective agents. The above suspensions do not affect other flights of the Wizz Air group.”

The move, described by Wizz Air as a response to “geopolitical instability, repeated airspace closures, and regulatory challenges,” has impacted travelers who booked flights for dates beyond 1 September 2025.

Scaling back

Meanwhile, Wizz Air’s CEO József Váradi confirmed to Reuters that the airline intends to “scale back” its order of 47 Airbus A321XLR aircraft in light of the Abu Dhabi withdrawal. He also revealed that talks are underway with Airbus to convert some of that order into A321 models, which are more compatible with Wizz Air’s revised operational focus.

The airline reiterated that only Abu Dhabi operations are affected, and all other Wizz Air group flights will continue as scheduled.

As Wizz Air pivots its strategy toward more stable and profitable markets, its handling of customer concerns, will be key to maintaining brand trust during this transition.

Tesla to sell Model Y cars in India, starting at $69,770

Tesla will drive on to India’s busy roads, targeting a niche premium EV segment that accounts for just 4 per cent of overall sales

Reuters
Reuters

15 July, 2025

Tesla to sell Model Y cars in India, starting at $69,770
Image credit: Tesla/Website

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Tech billionaire Elon Musk’s Tesla TSLA.O has priced its Model Y at about $69,770 in India, the highest among major markets, its website showed, as the electric carmaker geared up to open its first showroom in Mumbai on Tuesday, July 15.

With delivery estimated to start from the third quarter, Tesla will drive on to India’s busy roads, targeting a niche premium EV segment that accounts for just 4 per cent of overall sales in the world’s third-largest car market.

Read-Tesla to launch in Saudi Arabia as Musk, kingdom mend relations

It will compete mainly with German luxury giants such as BMW and Mercedes-Benz MBGn.DE, rather than domestic mass-market EV players such as Tata Motors and Mahindra.

Tesla’s Model Y rear-wheel drive will set back buyers Rs6m ($70,000), while its Model Y long-range rear-wheel drive costs Rs6.8m.

That compares with a starting price from $44,990 in the United States, 263,500 yuan ($36,700) in China, and 45,970 euros ($53,700) in Germany.

Grappling with excess capacity in global factories and declining sales, Tesla has adopted a strategy of selling imported vehicles in India, despite duties and levies running into roughly 70 per cent.

On Tuesday, police guarded Tesla’s first showroom in India as media crowded outside the office complex where it is located and the chief minister of the western state of Maharashtra, home to the Indian commercial capital, arrived for the launch.

Inside the showroom clad in Tesla’s signature minimalist neutral tones, the Model Y was draped under black and grey covers, partially visible through the glass. Access was tightly regulated, with no sign of fans or onlookers nearby.

Tesla’s website showed the Model Y available for registration in Mumbai at an on-road price of 6.1 million rupees, with a booking deposit of 22,220 rupees.

The firm’s Full Self-Driving (FSD) capability is on offer at an additional cost of 600,000 rupees, with future updates promised to enable operation with minimal driver intervention.

While the current features require active driver supervision and are not fully autonomous, Tesla says the system will evolve through over-the-air software updates.

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