UAE unveils Falcon Arabic AI as Gulf powers accelerate AI race

In a bold move reflecting its ambition to become a global artificial intelligence (AI) powerhouse, the United Arab Emirates on Wednesday unveiled Falcon Arabic, a new AI model tailored specifically to the Arabic language and its diverse linguistic nuances. 

The announcement underscores the Gulf state's accelerating investment in AI innovation as part of a broader regional contest for technological dominance.

The model, developed by Abu Dhabi’s Advanced Technology Research Council (ATRC), is built on a high-quality, native Arabic dataset, deliberately avoiding the limitations of translated corpora. According to ATRC, Falcon Arabic delivers performance on par with models up to ten times its size, signaling a leap forward in efficiency and linguistic sophistication.

“Today, AI leadership is not about scale for the sake of scale. It is about making powerful tools useful, usable, and universal,” said Faisal Al Bannai, Secretary General of ATRC, in a statement marking the launch.

In tandem, the ATRC also introduced Falcon H1, a new foundation model designed to outperform existing alternatives from global tech giants Meta and Alibaba by significantly lowering the computational requirements and technical expertise needed to operate high-end AI systems. This dual launch strengthens the UAE’s position as a regional frontrunner in the fast-evolving AI landscape.

Strategic Leverage through U.S. Ties

The announcement comes on the heels of a high-profile visit by U.S. President Donald Trump to the Gulf, during which he emphasized the importance of AI cooperation. Trump highlighted a bilateral agreement that will allow the UAE access to cutting-edge AI semiconductors from leading U.S. firms — a major technological windfall for the Emirati state.

This partnership is part of a broader strategy by the UAE to leverage its geopolitical alliances, particularly with the United States, to secure its place at the forefront of the global AI revolution. 

The Gulf nation has poured billions of dollars into AI research, infrastructure, and human capital, seeking to diversify its economy beyond oil and build a knowledge-driven future.

Regional Competition: Saudi Arabia’s Parallel Push

The UAE’s announcement mirrors recent moves by Saudi Arabia, which has also staked its claim as a future AI hub. AI was a central theme during President Trump’s visit to Riyadh, where Saudi officials presented their own plans for AI-driven economic transformation.

Earlier this month, the kingdom launched a new state-backed AI company, tasked with developing and managing AI technologies and infrastructure. 

The initiative includes the creation of one of the world’s most advanced multimodal Arabic large language models, an ambitious project aimed at placing Saudi Arabia at the epicenter of Arabic-language AI development.

Gulf States Redefining the AI Map

These parallel efforts by the UAE and Saudi Arabia mark a significant inflection point in the global AI race. While much of the innovation has historically been concentrated in the United States and China, the Gulf is positioning itself as a third pole of influence — one that combines deep financial resources, strategic geopolitical alliances, and a growing appetite for technological sovereignty.

The launch of Falcon Arabic not only reflects technical prowess but also highlights the cultural imperative of building AI systems rooted in local languages and identities. As the Gulf states escalate their ambitions, their contributions are likely to reshape the contours of AI development well beyond the region.