UAE, Kazakhstan explore investment opportunities in AI projects

The UAE and Kazakhstan have signed an MoU for investment cooperation in data centre and artificial intelligence projects in Central Asia's largest economy.

The UAE's Ministry of Investment signed the agreement with Kazakhstan's Ministry of Digital Development, Innovations and Aerospace Industry, and the sovereign wealth fund, Samruk-Kazyna.

The MoU focuses on establishing robust and efficient collaboration through the development of bilateral relationships between public and private organisations.

It also proposes introducing incentives to bolster initiatives and seeks to facilitate the exchange of knowledge.

"The planned investments in data centre and AI projects in Kazakhstan will help enhance the nation’s expanding digital infrastructure, offering businesses more opportunities to embrace and gain advantages from digitisation," said Mohamed Hassan Alsuwaidi, UAE Minister of Investment.

Kazakhstan is witnessing substantial growth in its data centre industry, driven by increased demand for computing resources and AI advancements.

The country’s data centre market is projected to grow annually at a rate of 6.83 per cent between 2024 and 2028, resulting in a market volume of $416.7 million.

"The establishment and growth of data centres is pivotal for Kazakhstan’s technological advancement. They serve as the backbone of innovation, fostering economic development and propelling the nation into the forefront of the global digital landscape," said Nurlan Zhakupov, Chairman of the Management Board of Samruk-Kazyna.

Kazakhstan’s exports to the UAE amounted to $560.34 million in 2022, while the UAE’s exports to the Central Asian nation reached $1.69 billion.