Middle East Poised to Become a ‘Silicon Valley of Capitalists,’ Ray Dalio Says
Dalio noted that the UAE and its nearby countries benefit from a large capital reserve and a steady inflow of global talent, attracting investment managers and innovators.
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Bridgewater Associates’ founder, Ray Dalio, acknowledged the development of the Middle East as it emerges as one of the world’s leading AI hubs.
“There’s a buzz here—the way there’s a buzz in San Francisco and places like that—about AI and technology. It’s very similar to that,” said Dalio, comparing the region’s rise to Silicon Valley’s pull for all things tech.
Dalio noted that the United Arab Emirates and nearby countries benefit from a large capital reserve and a steady inflow of global talent, attracting investment managers and innovators.
The UAE and Saudi Arabia have signed key partnership agreements towards fulfilling their AI mission. Microsoft and G42 announced a 200 MW data centre capacity expansion in the UAE, while Elon Musk shared plans for a massive xAI data center in Saudi Arabia.
Earlier this year, G42, OpenAI, Oracle, NVIDIA, SoftBank Group, and Cisco announced their partnership to build Stargate UAE, a 1-gigawatt compute cluster.
What they’ve done is create talented people. So this [region] is kind of becoming a Silicon Valley of capitalists … Now people are coming in… money is flowing in, and talent is arriving,” he shared with CNBC when asked how the UAE, Saudi Arabia, and Qatar can lead in the AI race.
Describing the UAE as “a paradise in a world that’s troubled,” he highlighted its leadership, stability, quality of life, and ambition to build a globally competitive financial ecosystem.
Sharing his views on the global economy heading toward an uncertain future in the near term due to a confluence of multiple forces, he said, “The next year or two are going to be more precarious.”
Dalio reiterated his view of the AI rally being in a bubble. In recent times, OpenAI founder Sam Altman and investor Michael Burry have raised their concerns about the AI bubble and its collapse.
However, the head of Bridgewater Associates advised investors not to rush for an exit.
“All the bubbles occurred during times of great technological change,” Dalio said. “You don’t want to get out of it just because of the bubble. You want to look for the pricking of the bubble.”
He also cautioned that venture capital, private equity, and commercial real estate are facing pressure as inexpensive debt is being replaced with higher-rate financing.
