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Abu Dhabi's Mubadala has backed US-based AI startup Crusoe in a $600M Series D funding round, reinforcing its strategic focus on cutting-edge technology. Meanwhile, the Oman Investment Authority has ventured into Elon Musk’s xAI, further bolstering its portfolio in transformative AI solutions. In Dubai, Sheikh Hamdan launched the region’s first drone delivery system, positioning the city as a global leader in smart logistics. These developments highlight the Gulf’s commitment to leveraging advanced technologies for economic growth and global competitiveness.

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Dubai Launches Middle East’s First Drone Delivery System

📰 What is it about?

• Dubai has officially launched the Middle East’s first-of-its-kind drone delivery system at Dubai Silicon Oasis (DSO), a major innovation hub. Spearheaded by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, the initiative is part of the Dubai Program to Enable Drone Transportation, launched in 2021.

• The project, developed in partnership with the Dubai Civil Aviation Authority, Dubai Integrated Economic Zones Authority (DIEZ), and Dubai Future Foundation, introduces dedicated air routes for drone deliveries.

• The first successful delivery took place from the Rochester Institute of Technology-Dubai (RIT-Dubai) campus, marking a significant milestone in integrating drones into the city’s logistics network. The system leverages advanced flight control algorithms, multi-sensor technology, and low-noise drones to navigate urban landscapes efficiently.

💡 Why it matters?

• Revolutionizing Smart Logistics: The drone delivery system supports Dubai’s vision to become a global leader in smart mobility and air transport. It enhances last-mile delivery, reducing delivery times and boosting efficiency in logistics.

• Economic Growth and Innovation: This project is closely aligned with the Dubai Economic Agenda D33, which aims to double Dubai’s economy by 2033 and position it as one of the world’s top three urban economies. It also underscores Dubai’s focus on research, innovation, and fostering public-private partnerships.

• Future-Ready Infrastructure: The initiative strengthens Dubai’s reputation as a global hub for emerging technologies like robotics, automation, and AI-powered systems. Dubai aims to have drone delivery cover 33% of the city by 2030, enhancing logistics while cutting carbon emissions.

• First Global Expansion: The collaboration with Keeta Drone, China’s leading drone delivery platform, marks its first venture outside Greater China, positioning Dubai as a preferred launchpad for global tech-driven solutions.

🔜 What’s next?

• Scaling Drone Deliveries: Following successful pilots at DSO, the system will be gradually expanded to cover more areas across Dubai, with plans for regional expansion to make drone deliveries a mainstream solution.

• Innovation Hub Development: Dubai Silicon Oasis will continue to serve as a testing ground for future-ready technologies, encouraging more R&D collaborations between public and private sectors.

• Broader Applications: The program sets the stage for expanding drone applications beyond delivery, including medical supplies, emergency services, and smart city solutions.

• Global Leadership in Smart Mobility: By fostering drone transportation technologies, Dubai is paving the way to become a model city for sustainable, technology-driven mobility solutions.

Markets

Oman Investment Authority Invests in Elon Musk’s AI

📰 What is it about?

• The Oman Investment Authority (OIA) has made a significant move by acquiring a stake in xAI, Elon Musk’s artificial intelligence company. This investment highlights Oman’s ambitions to bolster its global technology portfolio and support innovation in emerging fields like artificial intelligence.

• Founded by Musk, xAI is a leading AI venture focused on developing transparent, safe AI systems with real-world applications across sectors like healthcare, finance, and space exploration. Its mission, as Musk puts it, is to "understand the true nature of the universe," while solving global challenges through advanced AI research.

💡 Why it matters?

• Strengthening Oman’s Economic Diversification: The OIA’s investment aligns with Oman’s broader strategy to diversify its economy beyond oil and gas, focusing on high-growth, future-focused sectors such as technology and AI.

• Rising Regional Interest in AI: OIA joins a growing list of Middle Eastern investors eyeing opportunities in transformative technologies. Notably, Prince Alwaleed bin Talal and Kingdom Holding are also stakeholders in xAI, signaling strong regional support for Musk’s AI vision.

• Global Recognition of xAI: The recent Series B funding round raised $6 billion, pushing xAI’s valuation to a remarkable $24 billion. With backing from major global players like Andreessen Horowitz, Sequoia Capital, and Fidelity, this investment underscores xAI’s potential to lead the AI industry.

• AI’s Role in Shaping the Future: Advanced AI solutions developed by companies like xAI have wide-ranging applications across industries, positioning the technology as a key driver of economic and societal transformation. OIA’s stake secures a foothold in next-generation AI systems poised to redefine global industries.

🔜 What’s next?

• Oman’s Growing Tech Footprint: The OIA’s partnership with xAI opens avenues for future collaborations in AI research and development, potentially fostering technology transfer and innovation opportunities within Oman.

• Expanding AI Investments: This move positions Oman to remain competitive in the AI-driven global economy, alongside other regional sovereign wealth funds that are actively investing in advanced technologies.

• xAI’s Future Trajectory: With its strengthened financial backing, xAI is expected to accelerate its AI product development, expanding its capabilities across industries like space exploration, transportation, and data-driven decision-making.

Here’s a good read on why investing in (apparently devaluing) xAI can help gain favours in other Elon Musk ventures.

Abu Dhabi-based Mubadala Invests in AI Startup Crusoe in $600M Series D Round

📰 What is it about?

• Mubadala Investment Company, Abu Dhabi’s sovereign wealth fund, has participated in a $600 million Series D funding round for Crusoe, a San Francisco-based AI infrastructure provider.

• The round was led by Founders Fund, with additional investments from Fidelity, Nvidia, Ribbit Capital, and others.

• Crusoe specializes in building advanced AI infrastructure and has significantly expanded its global operations, now spanning nine U.S. states and three countries, including Iceland.

💡 Why it matters?

• Continued AI Investment Focus: This move reinforces Mubadala’s commitment to AI and technology investments, reflecting its growing emphasis on high-growth sectors as part of Abu Dhabi’s economic diversification strategy.

• Growing Relationship with Crusoe: Mubadala’s latest investment follows its participation in Crusoe’s $350 million Series C round in 2022, showcasing ongoing confidence in the company’s potential and growth trajectory.

• Crusoe’s Rapid Expansion: The startup’s customer base has grown sevenfold in the past year, demonstrating strong demand for its AI infrastructure solutions as the industry scales globally.

• Strategic U.S. Exposure: Mubadala CEO Khaldoon Al Mubarak highlighted the fund’s significant $20 billion exposure to U.S. assets, with a focus on AI and private credit, further underscoring the strategic importance of investments like Crusoe.

🔜 What’s next?

• Crusoe’s Growth Plan: With the new funding, Crusoe aims to expand its AI infrastructure footprint and serve a growing global customer base, driving innovation in AI technologies.

• Mubadala’s AI Portfolio: This investment is expected to bolster Mubadala’s AI and tech investment portfolio, positioning it to benefit from the continued growth and demand in the AI industry.

• Strengthening UAE’s Tech Vision: Mubadala’s active involvement in transformative technologies aligns with the UAE’s goal of becoming a global hub for innovation and AI development, fostering opportunities for future partnerships and initiatives.

Some other Abu Dhabi related news…

A unit of the Abu Dhabi Investment Authority (ADIA) and UK property firm Grosvenor have collectively sold a 92% stake in the UK’s Liverpool ONE shopping centre to Landsec in a deal valued at £490 million ($622 million).

The UAE sovereign investor was a majority shareholder in the landmark shopping complex, selling a 69% stake to the UK property investment firm, with Grosvenor selling a 23% stake.

🔍In other news…

1. The Chairman and CEO of Microsoft, Satya Nadella, will be making his highly anticipated return to the UAE as part of the Microsoft AI Tour in Dubai.

2. UAE-based The Bowery Company, known for pioneering Scandinavian design in the GCC, is opening its first flagship store in Riyadh!

3. Emaar Properties PJSC, the UAE’s largest listed real estate firm, surged to its highest level since 2008, as its shares rallied for a second consecutive day on Tuesday.

4. The founder and CEO of Dash Hospitality Group, Hayder Nashie, has just introduced uniQitchen.

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