UAE GDP to get boost from collaborations with Nasdaq giants

Collaborations with Nasdaq giants like Microsoft and NVIDIA are pivotal in establishing the UAE as a global AI hub, fostering economic diversification and innovation, and contributing to an anticipated 19.4 per cent of the country’s GDP from the tech sector within the next decade, research shows.

The exponential growth of AI is propelling Nasdaq to all-time highs. In fact, with Nasdaq Futures approaching the 20,000 threshold, US 100 retests the upper border of its up-trending channel since October 2022.

From Open AI to Microsoft’s Copilot, the momentum of the AI trend is overcoming market obstacles and surpassing concerns over monetary policies and regulatory risks. According to a McKinsey Global Survey, 72 per cent of surveyed organisations now utilise AI, highlighting its transformative impact on the tech sector and its ability to drive sustained market growth, reinforcing its crucial role in shaping the future of technology and economics.

In the UAE, the growth of Nasdaq, fueled by AI advancements, seems to have a positive ripple effect on the country. As leading AI companies on Nasdaq continue to thrive, their groundbreaking innovations enhance the UAE’s tech landscape. This synergy not only stimulates economic growth but also aligns with the UAE’s vision of a diversified, knowledge-based economy, solidifying its role as a leader in global technological progress.

The US and UAE’s strategic partnership in AI reflects a shared commitment to technological innovation. The UAE’s significant investment in US AI startups, combined with US support for AI platforms and education in the UAE, forms the backbone of this crucial alliance, contributing to the UAE’s transition from an oil and gas-dependent economy to a data-driven powerhouse.

Digging deeper into the impact of monetary policies on the AI sector and Nasdaq, the recent drop in US consumer price inflation metrics has fuelled positive sentiment across the markets, driving the Nasdaq to new record highs. Although inflation rates are gradually moving towards the Fed’s 2 per cent target, the 5.5 per cent interest rate remains in place with only one rate cut anticipated this year, as inflation levels are still considered elevated.

While AI is showing considerable resilience driving Nasdaq Indices to all-time highs, countries, including the UAE which is largely benefiting from surging AI technologies, strive to establish a robust and ethical AI sector through regulations designed to support growth and align with their future economic and geopolitical objectives, without restricting innovation.