Sovereign And Venture Capital To Boost The UAE’s AI Scene

As AI’s importance continues to increase, the investment landscape for the UAE’s AI scene grows. Colossal, state-directed capital from sovereign wealth funds like Mubadala, ADQ, and the AI-super fund, MGX, which targets over $100 billion in assets, is poised to bolster AI and tech projects. These entities make multi-billion-dollar investments in national infrastructure and global technology partnerships, channeling investments into the local ecosystem.

The country is also home to an active early-stage venture capital market. The UAE’s tech ecosystem attracted $1.0 billion in funding during the first half of 2025. This mirrors a powerful global trend where AI-related companies attracted 53% of all global VC funding in the same period. Regional VC firms are also providing crucial early-stage capital and have made AI a core part of their investment thesis. This domestic activity is complemented by growing interest from international VCs, who are actively monitoring the region for opportunities.

Structures like TheBlock are also helping augment the prospects of the tech scene in the UAE through collaborations with AI pioneers like Kaiko. The latter is building the AI infrastructure within the organisation. The initiative is bringing together 300+ firms that are focusing on Web3, funding, ecosystem building and AI. For startups, the availability of multiple funding channels and support provides a suitable environment for growth and helps position the UAE as a global hub for AI and tech.

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