Abu Dhabi, the capital city of the United Arab Emirates (UAE), has recently established a new investment firm named MGX with a primary focus on pursuing investment opportunities in artificial intelligence (ai) both domestically and internationally. According to reports from Abu Dhabi Media Office, the company aims to expedite the advancement and implementation of ai and related technologies.
MGX’s Ambitious $100 Billion Investment Plan
Sources close to the matter, as reported by Bloomberg, suggest that MGX intends to amass approximately $100 billion in assets under management within the next few years.
Two leading partners, Mubadala Investment Co. and G42, have been instrumental in the formation of MGX. Mubadala, an Emirati state-owned holding company managing $276 billion in assets, had previously announced plans to allocate significant capital towards ai and space technology investments this year.
MGX’s Independent Investment Strategy
Unlike Mubadala and G42, MGX will manage its own investment deals in ai, operating independently from both partners. The Abu Dhabi government is set to initially fund the new company with fresh capital.
“The company will build on Abu Dhabi’s existing investments in these areas [ai infrastructure, semiconductors, and ai core technologies and applications] and deploy capital alongside leading international technology and investment companies,” the official report reads.
UAE’s Dedication to ai and Emerging Technologies
The creation of MGX comes at a time when the UAE is increasingly focusing on investing in emerging technologies, with ai being a priority area. In January 2024, His Highness Sheikh Mohamed Bin Zayed Al Nahyan, the Ruler of Abu Dhabi, launched an artificial intelligence and Advanced Technology Council (AIATC) to spearhead the country’s efforts in ai developments.
“The council aims to provide a legislative framework for the adoption of artificial intelligence technologies and applications, support research and development, and coordinate efforts with international partners,” Sheikh Mohamed said during the launch event.
In February 2023, the UAE government introduced a $500 million program aimed at accelerating research and development in ai and other advanced technologies.
Leadership of MGX
The Board of Directors for MGX will be chaired by His Highness Sheikh Tahnoun Bin Zayed Al Nahyan, the UAE’s National Security Adviser. Ahmed Yahia Al Idrissi, currently serving as the CEO of Mubadala, has also been appointed to lead the new investment company. Additionally, Mr. Peng Xiao, Group CEO of G42, has been named as a board member.
