Ray Dalio, the billionaire founder of Bridgewater Associates, says that the Middle East is quickly becoming a major global hub for artificial intelligence, similar to how Silicon Valley became a center for tech. Speaking with CNBC, he explained that the United Arab Emirates and nearby countries have combined large amounts of money with global talent to make the region attractive to AI innovators and investors. More specifically, the UAE and Saudi Arabia have launched multibillion-dollar plans to build data centers and AI infrastructure, thanks to state-backed funds and partnerships with big tech companies.
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One major example is a $10 billion deal between Google Cloud (GOOGL) and Saudi Arabia’s Public Investment Fund to create a global AI hub. As a result, Dalio said that the region is starting to feel like a “Silicon Valley of capitalists,” where both money and talent are pouring in. He also said that he has been visiting Abu Dhabi for over 30 years and credits the Gulf’s success to careful planning, strong leadership, and a desire to create a competitive financial system. He called the UAE “a paradise in a world that’s troubled” due to its stability and increasing interest in AI, much like San Francisco.
However, Dalio warned that the global economy may face serious challenges in the next year or two, and he pointed to three big risks: rising debt, political conflict in the U.S., and global tensions. He believes that markets are in a bubble, similar to what happened in 2000, with cracks showing up in private equity, venture capital, and debt markets. However, Dalio says investors shouldn’t rush out, since bubbles usually burst when money tightens or when investors are forced to sell assets.
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